Real Estate Chronicles: My Journey of Selling a Rental Property Once More

Real Estate Chronicles: My Journey of Selling a Rental Property Once More

Last week was incredibly stressful, mostly due to the sale of my studio flat in the suburbs of Paris. I found a buyer back in June, but the legal contract took months to finalize due to the buyer’s lawyer. We finally signed the sale agreement at the beginning of August. You’d think that between mid-June, when the buyer made the offer, and August when we signed, everything would have been sorted out. WRONG.

The buyer’s lawyer kept asking for a lot of paperwork, which is usual, but after two months of delays, it was getting frustrating and costly. When he started asking for information he already had, I lost my temper. This lawyer seemed to expect me to do his job, even though I was traveling with limited internet and access to the necessary documents.

I responded curtly, telling him it was his job to answer his client’s questions. I still provided the buyer with the answers to not jeopardize the sale. But seeing the hesitation from the lawyer, the buyer got cold feet, and I lost the sale. Here, once you sign the agreement, there’s a seven-day cooling-off period.

So there I was, three months deep into additional condo fees and taxes, with no buyer, still on my motorcycle trip abroad. I planned to return to Paris ten days later, so it wasn’t a huge deal. I put the ad back up a few days before returning and reconsidered the pricing. Last time, I listed it for $60K and sold it for $56K. Not wanting to negotiate this time, I set a firm, non-negotiable price of $58K. Luckily, six people wanted to visit over the weekend, and the first girl who saw it agreed to the $58K! She even had me sign a paper on the spot confirming the sale.

We were supposed to sign a formal agreement with the lawyers the same week. We went to the same lawyer to make the process smoother. WRONG again. The lawyer told her she might have to pay $5,000 in condo fees from previous years, and she freaked out. So did I, as I had no idea. I spent an entire evening checking the condo’s accounting reports, found no such fees, and called her back. She doubted me over the lawyer, understandably. I managed to get her to the lawyer’s office, where after three hours of proving my case, the lawyer admitted his mistake. But he still hadn’t drafted the paperwork, so we lost another ten days in the process.

I was also worried she’d find something better or cheaper and back out. Finally, last week, we returned to the lawyer’s office and signed the agreement! She had an eight-day cooling-off period, but that’s now over. The only potential issue is her loan approval, but since she’s a government worker, I’m not too worried.

I was anxious about the sale because I planned to buy land in Guatemala. My flat had been empty since March, and I didn’t want to keep paying fees and taxes. I am so grateful because, in the grand scheme, six months isn’t a long time to sell a flat. I had it listed with agents for months, but they just suggested I lower the price significantly for an easy sale.

Now, I can focus on my Guatemalan land! My offer has been accepted, so I am officially a landowner!

Financial Summary:
Expenses:
– Buying price (including legal fees): $25,000
– Maintenance fees for the empty flat: $600 ($150/month for four months)
– Rent for a secure door: $800 ($200/month for four months)
– Taxes: $3,600 ($400/year for nine years)
– If the sale falls through, another two months of expenses: $700

So, total expenses would be $30,700.

Income:
– Rent for nine years: About $28,800 (after admin fees, condo fees, insurance)
– Selling price: $56,000

Total income: $84,800

Net profit: $54,100 (approximately 17% per year, not compounded, since I spent the rent money as it came in). What I actually have in my pocket is $56,000 after investing $30,700 nine years ago, which is around a 5.5% compounded annual return. Pretty good!

I’m really grateful I bought the studio flat right out of college, even though I wanted to borrow money and buy something bigger. The bank didn’t let me borrow, but this turned out well. If I had held onto the money to buy later, it would have been complicated as I was abroad. The return on the flat was much better, though dealing with the managing agency and the sale process was a pain in the last few months. Now, I’m excited to receive the final payment and start building my home on my new land!