A couple signs a preliminary agreement for an apartment rated F in the energy performance diagnosis (DPE). Three months later, the bank refuses the loan: the debt-to-income ratio exceeds the threshold set by the High Council for Financial Stability, and the cost of energy renovation work was not included in the financing plan.
This scenario, increasingly common since the rise in interest rates that began in 2022, illustrates a simple point: a real estate project is not determined at the visit, but well in advance.
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DPE and rental ban timeline: the filter to apply before any visit
The Climate and Resilience Law has established a strict timeline. Properties rated G have been banned from rental since 2025. Those rated F will be banned starting in 2028. For a purchase as a primary residence, one might think that this timeline does not directly concern the buyer.
This is a mistake. If you sell in five or ten years, a property rated F or G will have lost resale value compared to a better-rated property. The next buyers will factor in the cost of renovations in their offer or will turn to already renovated properties.
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For a rental investment, the risk is even more direct: a property that becomes un-rentable loses its profitability. It is recommended to consider the DPE as a sorting criterion just like surface area or location, and to estimate the costs of energy renovation before making an offer. The resources available on www.guide-immo.com allow for cross-referencing these criteria with local market listings.
Bank pre-approval: securing financing before searching for a property
Since the tightening of criteria by the HCSF, the maximum debt-to-income ratio is capped and the repayment duration is regulated. Banks apply a more selective internal scoring system than a few years ago. Multiplying visits without having validated your actual borrowing capacity exposes you to a chain of refusals and considerable time loss.
Having your file pre-approved by a broker or a bank before starting the search changes the game. The process involves submitting your bank statements, proof of income, and recurring expenses to obtain a reliable estimate of the borrowable amount.
What pre-approval reveals concretely
- The maximum loan amount, calculated based on actual disposable income and not just a simple online simulation
- Any potential blocking points (recurring overdrafts, ongoing consumer credit, type of employment contract) that can be corrected before submitting a final file
- The range of interest rates you can expect, which refines the total budget including notary fees and renovation costs
This process generally takes a few days. It primarily prevents falling in love with a property that you cannot finance, a situation that generates frustration and hasty decisions about the next project.
Renovation budget: the item that most buyers underestimate
A recurring pattern is observed: the buyer negotiates the purchase price, calculates notary fees, and then discovers after signing that the renovation costs are much higher than expected. Insulation, replacing the heating system, or bringing electrical systems up to code represent expenses that can radically alter the financial balance of the project.
Incorporating the renovation budget into the financing plan from the search phase allows for comparing properties based on their total cost, not just their listed price. An apartment needing renovation listed for less than a newer property can turn out to be more expensive once the renovation costs are accounted for.
Energy renovation: balancing comfort gain and regulatory constraints
For poorly rated properties in the DPE, energy renovation is no longer a bonus; it is a future obligation. Insulating walls and roofs, replacing windows, and installing an efficient heating system are the heaviest expenses. Returns on this point vary depending on the condition of the building, the region, and the type of co-ownership.
Before signing a preliminary agreement, it is beneficial to involve a construction professional for a rough estimate. This quote conditions the price negotiation and the structuring of the loan.
Negotiating the purchase price: starting from local market data
Negotiating does not mean proposing an arbitrary discount. A credible offer relies on factual elements: price per square meter in the neighborhood, condition of the property compared to comparable references, estimated cost of renovations, duration of the property’s listing.
A property listed for several months generally offers more room for negotiation than a newly listed property in a tight market. The DPE also plays a role: an unfavorable rating is a legitimate negotiation argument since the buyer will have to finance compliance.
- Consult recent transaction price databases (the DVF database, accessible for free, lists notarized sales)
- Compare the asking price to the median price in the area for the same type of property
- Present renovation quotes to the seller to justify an offer lower than the listed price
This approach transforms negotiation into a factual exchange rather than haggling. Sellers are more likely to accept a discount when it is based on verifiable data.
The best-prepared real estate project is one where every decision, from sorting listings to the final offer, is based on concrete data rather than intuition. A verified DPE, pre-approved financing, and a realistic renovation budget form the foundation of a purchase that does not hold any unpleasant surprises at signing or resale.