BonjourParis

The Wow Factor

Madelyn Byrne and husband Philippe are passionate about Paris.  They own www.ParisPerfect.com, a vacation apartment rental company that specializes in beautiful apartments in Paris with unforgettable views.  Their apartments have been featured on The Fine Living Channel, have recently been recommended by Rick Steve’s France 2006 and were recognized by BusinessWeek and the Wall Street Journal  for Paris vacation rentals.

Before starting their business, Philippe practiced as a Cardiac Surgeon in the leading hospital in France; Madelyn, an MBA from Stanford Business School, spent most of her career as an investment banker in London and Paris before she turned her interests to their Paris business, allowing her a chance to work from home and spend more time with their two children.

Our Most Important Tip: The Wow Factor

While searching for the right Paris apartment for sale, if there is one key piece of advice to offer — a very intangible but most important feature of all — the Paris apartments must possess the ‘Wow’ factor. You will feel it even if the place is a wreck, if it’s an empty shell, or if it’s been hideously decorated. The Wow factor can be manifested in any of several ways, but it will strike you immediately, like a coup de foudre or a lightning bolt:

•    A fabulous panoramic view or the sight of a famous landmark from a high floor
•    A view of an enchanting street scene and neighborhood from an upper floor
•    A large window overlooking a beautiful garden or courtyard
•    A loft window or two – atelier d’artiste
•    A balcony or terrace
•    A conservatory

Yes, these Paris apartments are hard to find and, unfortunately, there is no multiple listing service to make your job any easier. Your time is short and you’re anxious to close in one or more Paris apartments but don’t despair. Take a deep breath, hire a good search consultant if you haven’t found anything during your stay, and, by all means, hold out for the best you can afford. For resale and rental value, you will do so much better if your Paris apartments possess one or more of these special features. Think about it: if you had a choice between renting a ‘nice’ apartment without a view or one that was slightly more expensive but with a killer view or a balcony, what would you choose?
Interestingly, the price per square meter for Paris apartments with a Wow factor is only marginally more expensive than the price for average Paris apartments without balconies or views, even if they are in the same building. But your ability to sell them in a weak market or to get top dollar in a strong market is significantly better than if you had bought ‘nice but average’ Paris apartments.

Our ‘Pomerol’ and ‘Kir’ Paris apartments are excellent examples. For Pomerol, an agent who knows us very well called and said he had just received a mandate to sell an apartment on rue Cler, one of the most famous market streets in Paris. It had not been touched in 40 years, so it’s décor and amenities made it seem like stepping into a time warp and it was not up to code. When we took one look at the view of rue Cler below and of the Eiffel Tower in the distance, however, we knew it had the critical Wow factor, in spite of its current condition. More on ‘The Negotiation’ later, but we deliberately said nothing positive about the apartment in front of the agent. We had lunch, stopped by his office a little later with a discounted bid, and asked him to present it to the owner immediately because we were considering other Paris apartments as possibilities if they chose not to accept our offer. Well, the owner did accept our offer, so we put it in writing and handed it to the agent. We then immediately called our Notaire asking him to contact the seller’s Notaire so the purchase would be secured. These are important steps to prevent the buyer from accepting a higher bid.

Having secured the property, we totally gutted it. We had our contractors completely reverse the layout, including plumbing and wiring, and remodeled it over a period of four months. We now show some of the original pictures along with the remodeled results: it has been dramatically improved with a much better floor plan.  The final pictures can be viewed at: http://www.parisperfect.com The agent regularly calls to ask if we are interested in selling it.

A more dramatic example is Kir, one of our studio Paris apartments. This was a complicated purchase as it required buying two apartments from two different owners, even though the apartments had been combined into one and rented to a series of deadbeat-style students. The owners, a Paris Magistrate and a dentist who lived in the Paris suburbs, had negotiated this unique arrangement many years before and were no longer speaking to each other. The dentist ‘held us up’ for a premium price, knowing we had already bought one half of the apartment from the Magistrate. Philippe brought him back to earth by reminding him that it would be illegal for him to sell his half separately because it was less than the legal size required for Paris apartments. He then agreed to a much smaller premium above the market price.

It was hard to fully appreciate this apartment’s potential given its backed-up plumbing and filth, but the two large windows, coveted sixth-floor location, streaming sunlight, and desired neighborhood made us easily take the leap. We moved the doorway and reversed the floorplan to improve Kir’s layout. In order to take advantage of every square inch of space, we decided to lower the ceiling above the kitchen and bathroom in order to create storage space for guests to stow their luggage. While accomplishing this work we discovered skylights in the attic of the building just above the apartment, so we included sandblasted glass ceiling panels in our design and voila! — natural light now shines in from above the kitchen and bathroom. . . a brilliant touch!

It’s not always easy to buy the right Paris apartments, because so many that you’ll see are ‘almost, but not quite.’ We bought an ‘almost, but not quite’ apartment a few years ago on Avenue Bosquet and paid the price for my own over-eagerness. Like many Paris apartments, it had a lot of great features, such as being on a high floor and looking out onto a tree-lined street, but the view wasn’t particularly special. It had balconies, but they were only ornamental; you couldn’t ‘step out’ to fully enjoy the view. It also had high ceilings, beautiful parquet floors, good size, and a nice price, BUT . . . it just didn’t have the Wow factor . . . and in our hearts we knew it. We gambled that the views of the trees, the ornamental balconies, and its many traditional features would be enough to rent it consistently, but we were wrong. It never rented as much as our other Paris apartments, so we decided to take a small loss and trade up for something better. It was an expensive lesson, but we made the right decision to let it go. It’s hard to walk away from a loss, but just like in any other business, you try to learn from your mistakes and move on.

The Wow factor is central to our search for Paris apartments, whether for ourselves or for our clients. And it is not negotiable. Remember that if you are discerning and an apartment is exceptional for you, it will be exceptional for Parisians and everyone else. If you can’t feel the Wow factor when you walk through the apartment, wait 24 hours before making a final decision. Foreigners have been important buyers in Paris over the last few years and as a stock market saying goes, a rising tide lifts all boats. We, however, want to be confident, both for ourselves and for our clients, that if foreign buyers temporarily disappear, Parisians themselves will still be eager to buy our Paris apartments.

Other Important Tips

Outward View

Paris apartment buildings are constructed with inner courtyards, and while some may feature views of both the courtyard and the street, most Paris apartments face either one or the other. When you live in an apartment with an outward view to the street, you have the ‘Gift of Paris.’ Watching the city change through the seasons and gazing out upon the daily life of Parisians — these are what make staying in Paris apartments truly special. It is part of the magic of being in Paris. Seeing spring as it turns into summer, and then into fall and winter; watching children walking to school with their parents and then giddily following their teachers to the park; experiencing the first cold day and the beauty of a brilliant sunset — you miss all of this if your view is of a static inner courtyard. The difference in price may be marginally more for Paris apartments with outward views, but it’s worth every single penny. Be patient, keep looking, and hold out for the best. We tell our clients that it may take months for us to find something special for them, but they’re thrilled when they hear us shout: “We’ve found something; here are the pictures of the apartment and building; please get over here now!” Then they know they are buying one of the premier Paris apartments with the unique combination of great view, good location, and charm they’ve been waiting for.

We recently found an apartment for a client who is a surgeon in California and who could not take the time to fly over and see it. They had stayed in several of our Paris apartments at www.parisperfect.com and knew about our high standards and tastes, making it easy for them to trust our judgment, but it’s a difficult decision for anyone to plunk down a significant amount of money, site unseen. After two long and late conference calls where they viewed tons of photos that we took, they said “Yes!” We used an excellent and reasonably priced lawyer to help them set up a French company and who was given the mandate to sign the Promesse de Vente; we helped them find a bank and obtain a mortgage.

We coordinated long distance calls with the clients and the architect to come up with a really fantastic floor plan, and we put the job out for bids last week. Work is scheduled to begin next summer, and the finished product will be stunning. It will feature an outstanding view of the Eiffel Tower and retain many of its original features. The clients have seen it and are delighted, they paid an excellent price, and we will deliver the apartment to them cle’ en main — fully remodeled to their specs and ready to move in. We know it will rent well when they aren’t in residence, and it will have good capital appreciation down the road. Making long distance decisions can be difficult, especially as it is a large investment, but be prepared to decide quickly, ask for lots of pictures, know the neighborhood, and, if possible, get someone you trust to take a look. At worst, you can use the ‘Get Out of Jail Free Card’ by signing the Promesse and backing out within a week — but we don’t advise that unless absolutely necessary.

Some people talk about ‘quiet courtyards’ as though it were an advantage. We disagree; a quiet courtyard may have an advantage if the building is located on an enormous boulevard such as Ave de Tourville, rue de Rivoli, or rue du Louvre, but who wants to live on those boulevards anyway? Try staying in Paris apartments with courtyards for a week here and a week there and find out for yourself. After several days of staring out the windows at exterior building walls and neighbors’ windows, you’ll find they are not only dull, but they’ll make you question whether you’re even in Paris — you may as well be in any anonymous city in the world. Apartments sur cour fill the classified ads for Paris apartments and you will soon recognize the standard phrases: Calme sur cour; Calme et très agréable; Très calme, Idéal pied à terre. (I often ask why buying a second-rate apartment that is calme would make an ideal pied à terre, but the reason is obvious. You’ll see loads of interior Paris apartments for sale in agents’ windows, and as we advised in an earlier article, if they have time to appear in the window, it’s often because they’ve been on the market for a while)

You’ll also notice that Paris apartments with quiet courtyards have their own noises, whether from noisy families, parties, crying babies, people emptying garbage into courtyard bins, or neighbors playing loud music. We always go for the views and install the best quality double-glazed windows. The technology of soundproofed glass is so advanced that you can install quality double-glazed windows on the busiest streets and hear a pin drop even in Paris apartments located on the busiest boulevards.

Sophisticated buyers agree on outward views because those Paris apartments sell first and at the highest prices. Notice the agency windows: only a few photos show Paris apartments with beautiful outward views or views of a special monument, church, or park — and they generally have ‘Sold’ notices stamped over them. There are simply fewer of these special Paris apartments available and they sell quickly.

If you use a search consultant, try to see what sorts of Paris apartments they have found and remodeled in the past and what arrondisement (neighborhood) they specialize in. Have them take lots of pictures, and not just of the apartment but of the elevator, the façade, the caves (basement storage units), and the street in both the daytime and at night.

Upper Floors and South or West Facing

On sunny spring and summer days, when the sun doesn’t set until 10 pm, we can forget that Paris is in Northern Europe. But you will be quickly reminded of this if you spend time in Paris during the winter, when the sun sets before 4 pm and doesn’t rise until almost 8 am the following morning. Light and views are why so many Parisians spend hours in their local cafés, as close to the windows as possible. I often look out at the courtyards from the back of some of our Paris apartments that have both inner and outer views, and I notice how many neighbors switch on their lamps in the middle of the day during the winter — and they are much more frugal about conserving electricity than Americans are!

You want whatever sunlight is available to come streaming into your living room for as long as possible during those winter months. Go for a southern or western aspect . . . and on the highest floor you can get to capture it.  An example of what we mean is our Chardonnay apartment where I captured the afternoon sun shining onto the living room one sunny afternoon and even with my amateur photography skills, the beauty of its special southwest-facing placement shines through: http://www.parisperfect.com

This may sound picky, but you are making a substantial investment and should focus on buying the best that you can afford. Our advice will ring a bell when an agent or classified ad stresses that an apartment faces West or South — because it matters to sophisticated buyers of Paris apartments.

A friend asked us to view an apartment on the fourth floor that overlooked a pretty courtyard, as they were ready to make an offer. It had beautiful beams, a marble fireplace, a nice layout, and was located in a charming part of the 6th arrondisement. But even on the sunny day that we viewed it, it felt somber and we could only imagine how cooped up we would feel on a gray morning. We advised against it and they later found a smaller third-floor apartment with an outer view facing west on the same wide street and they love it.

New or Old Building

We are big proponents of buying ancien or turn-of-the-century (1880s to 1910) Paris apartments. We will stretch to the 1930s but rarely beyond. Talk to French friends and agents and they will tell you why: it’s harder to re-sell a modern apartment because they simply lack charm. More importantly, the quality of workmanship, particularly from the 1950s to the 1980s, is perceived to be much lower compared to older buildings, meaning more repairs, less insulation, etc. As much as you like a certain view or feature in a newer building, remember that it’s going to be harder to sell down the road and it will not acquire the same premium as the best apartments anciens.

Elevator

We insist that our Paris apartments must have an elevator. Yes, there are some fabulous apartments on lower floors in buildings without elevators, and in one sought-after quartier, the Marais, many Paris apartments are located in small buildings where installing an elevator is impossible. However, our view remains strong and steadfast because we have lived through cycles where real estate transactions fall to a trickle. In a down market, the lack of an elevator is a deal-breaker. As tempting as the apartment and price may be to you, you will have more trouble renting it and more trouble selling it in a buyer’s market.

Finally, remember the rule that the cost to remodel an apartment is the same throughout Paris, whether there is an elevator or not. Since remodeling and refurnishing represent a significant part of your overall investment, don’t ‘cheap out’ on the elevator. One exception may be certain Paris apartments on the piano nobile, or first floor. In the days before elevators, these were the most cherished Paris apartments in a building not only for the obvious reason, but because they featured 12-foot-plus ceilings and fabulous original features with views onto glorious courtyards. Even so, it is still a negative if they don’t have an elevator, but other desirable features will compensate.

Helpful Hints

The Sleep on it Rule

If you think you’ve found a terrific apartment, but have some niggling doubts, use discipline by saying “merci” and then taking your leave. Have dinner and sleep on it before making a decision the following morning. This may be hard! I have the worst discipline of all as I always see great potential in even the most mediocre of Paris apartments. It takes enormous willpower to force myself to rein in my enthusiasm, leave, and think about it overnight. My husband Philippe is the best judge — he never compromises and his radar never steers him wrong. When he sees perfect Paris apartments, there is no hesitation at all and he goes straight into Negotiation Mode. But if there is something wrong, he turns it down and leaves quicker than you can say Jack Sprat.

This week, I viewed an apartment for a client and it had almost everything: two balconies on an upper floor, a spacious bedroom, great views of the Eiffel Tower, and tons of potential after a remodel. BUT . . . the apartment was located in a 1940s building, it lacked charm, and it was located on a drab street surrounded by other large apartment and office buildings. There were no trees, no petits commerces, and no shops to liven up the area. I checked the monthly management fees and they were on the high side, about € 300 per month, but I wasn’t quite ready to give up on it yet. So, I walked back to see it in the evening, waited a full 24 hours to weigh the pros and cons, and came to the realization that I just didn’t like the feel of the street. While it might have rented well, we want Paris apartments that offer the whole package: rentability, good capital appreciation, and resale potential. This one failed on two out of three. Again, Paris apartments with views and balconies are extremely difficult to find and it was hard to turn and walk away, but we made the right decision for the client.

Ask Yourself if a Cynical Parisian Would Buy Your Apartment in a Flash

A continuing theme of ours is to buy defensively. You want to be sure that your bases are covered in good markets and bad, and the best way to do so is to find an apartment that even Parisians will fight over to purchase if you decide to sell. Parisians are concerned about the same factors I’ve listed above, and if they have a choice of buying ‘just another nice apartment’ or one with something special, you know which one they’ll choose. As mentioned in our first article on location, when real estate transactions fall to a trickle, you want your apartment to be the one that agents can make appointments with buyers to view. If you can’t get buyers to your front door, then you won’t get your sale.

A Final Note

Buying a Paris apartment is one of the most important investments you can make. Take your time, buy the best you can afford, be prepared to walk away from dozens, and hold out for the Wow factor. Find someone who shares your tastes, either someone who can get to Paris at a moment’s notice or someone already in place who can help you carry out your search — because Paris doesn’t offer a Multiple Listing Service. Make sure your trusted agent understands your tastes and priorities, evaluates several apartments with all of our tips in mind, and has the ability to match your desires with what they find for you. Finally, be prepared to hop over at a moment’s notice because great Paris apartments do not sit around for long. Good hunting and good luck.

If you have thoughts or questions, feel free to contact Madelyn at: madelyn@parisperfect.com