Cabin life holds a special place in Norwegian culture

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Cabins hold a special place in Norwegian culture. Many families own one or have access to a shared family cabin. Recently, there has been an increase in foreign buyers, but they still make up only about 5% of total purchases.

Buying a cabin is a unique type of investment.

Some see it as a lifelong retreat, a place to pass down through generations. Others take a more short-term approach, choosing a cabin suited to a particular life stage or financial situation. No matter the perspective, the cabin dream is deeply personal – and that’s what makes it so fascinating.

I assist with several cabin purchases throughout the year, and interestingly, most of my clients in this area are international buyers. Their dreams are unique and diverse.

Some seek mountains and snow, while others long for coastal serenity. Some prefer simplicity, while others look for luxury. But one thing remains the same – the desire to create special moments with loved ones and experience the beauty of Norwegian nature.

The cabin market in Norway – a short overview

During the pandemic, there was a significant growth in cabin construction and cabin purchases. After 2022, sales volumes have dropped sharply, and prices have either declined or flattened. The reasons are inflation and high interest rates. It is natural for people to prioritize their primary homes and not a luxury item like purchasing a new cabin, which often turns out to be the case, despite varying price ranges. In popular areas, especially in the mountains, many cabins and apartments have been built that remain unsold.

Now, there are reports of an increase in sales, while prices remain steady. It seems that those built and currently vacant will eventually be sold, but it will take time before new construction resumes. Additionally, there are many used cabins on the market that can be good alternatives. Many who invested in cabin life during the pandemic have discovered that cabin living may not suit them as well as they thought and have chosen to put their cabins up for sale again.

If you were to invest in a cabin in Norway, what would be most important to you?

Feel free to contact me or request a non-binding digital meeting to discuss your dreams and situation.

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Understanding the Real Estate Brokerage Act in Norway: A Guide for Home Buyers

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The Real Estate Brokerage Act is a fundamental piece of legislation that regulates real estate agents in Norway. It aims to ensure that the buying and selling of properties through intermediaries, such as real estate agents, occurs in a secure, orderly, and efficient manner. This law guarantees impartial assistance for both buyers and sellers, fostering a trustworthy real estate market.

Over the years, the Act has undergone numerous revisions, with new amendments currently under consideration by the Norwegian Parliament. While these changes may not be significant, it’s essential to understand the core provisions and their impact on real estate transactions in Norway.

Purpose of the Real Estate Brokerage Act

The purpose of the Real Estate Brokerage Act is to facilitate real estate transactions while providing protections for all parties involved. The law ensures that real estate brokerage is a regulated profession requiring a government-issued permit (concession) to operate. Only authorized entities, such as real estate firms, lawyers, and legal advisors, can hold this permit, which is critical for maintaining high professional standards.

Key aspects of the law

A significant portion of the Act includes requirements for competence and education, outlining who can undertake independent brokerage assignments and the oversight of professional conduct within these firms. An important chapter addresses the duties and responsibilities of brokers to ensure that transactions are conducted ethically and in accordance with good brokerage practices.

Furthermore, the law stipulates the oversight mechanisms and penalties for brokers who fail to comply with established rules and regulations. In Norway, real estate agents are well-educated and generally equipped to carry out their duties in compliance with the law. However, there are instances where shortcuts may be taken. To address these issues, there are complaint bodies, and brokers can be held liable for damages if their actions are unlawful. Typically, it is the buyers who file complaints or take legal action against the brokers.

Consumer protection in real estate transactions

The laws governing real estate transactions, including the Real Estate Brokerage Act and the Sale of Real Estate Act, ensure that buying a home in Norway is relatively secure. However, it places a significant responsibility on buyers due to the obligation for due diligence and the binding nature of offers without a cooling-off period.

About buyers due diligence and duty of inspection, read more here

It’s essential to note that the broker’s client is the seller, who pays the commission. The broker’s primary focus is to achieve the highest possible price for the seller. As intermediaries, real estate agents are expected to facilitate agreements between both parties while exercising care for both the buyer and seller throughout the process.

Despite this care, the emphasis on obtaining the highest sales price can lead buyers to perceive agents as biased towards sellers. Unlike in some other countries, it’s uncommon in Norway to have a dedicated buyer’s agent, as a single professional is typically seen as sufficient to handle both parties’ interests.

Advocating for buyer representation

Considering the challenges buyers, particularly those from abroad, face in navigating the real estate market, there is a growing need for dedicated advisors who prioritize buyers’ interests. While I am qualified as a real estate agent, I have chosen to operate solely as a buyer’s representative and not as an intermediary. My practice does not fall under the Real Estate Brokerage Act, as I am focused exclusively on advocating for you as a homebuyer.

Commitment to your interests

As an independent advisor, I do not act as an intermediary, freeing me from the licensing requirements that apply to real estate brokers. This allows me to work entirely in your best interests during the transaction. To provide the highest level of service, I have also secured professional liability insurance, ensuring that you can trust my advice and support.

Navigating real estate transactions can be complex, and I invite you to reach out with any experiences or questions you may have regarding dealings with brokers in purchasing situations. Together, we can ensure that your interests remain at the forefront throughout the process.

Boligdama, Trude Larsen, +47 950 37 330 – trude@boligdama.no

Foto: www.friberg.no

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In Norway, there is no cooling-off period for property purchases

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Understanding the real estate market in Norway can be challenging, especially for those unfamiliar with the legal framework. One crucial aspect that is often underestimated is this: once you have submitted a bid, there is no cooling-off period. This can lead to significant consequences for buyers, especially if they haven’t familiarized themselves with the terms beforehand.

Buyer’s Due Diligence

When you submit a bid, you commit to a binding agreement. The bid must include the price, the transfer date, and any conditions. It is essential that you have conducted your due diligence: reading the sales material, inspecting the property, and asking questions to the broker. The buyer’s due diligence implies that you are expected to have understood everything presented to you before placing your bid. Simultaneously, the seller has an obligation to disclose all known information about the property. Keep in mind that the agreement you enter into with the seller is based on this information. Therefore, it is crucial to ensure that all details are clear before you submit your bid. Unfortunately, many, particularly people from abroad, enter real estate transactions unaware that they are effectively binding themselves to terms that cannot be changed later. In many other countries, there is some sort of cooling period after the bidding.

Read:  Remember that the bid is binding when you buy a home in Norway

A Cautionary Tale About Being “Flexible”

Recently, I was contacted by a homebuyer who had indicated that he was “flexible” regarding the transfer date in the bidding form. In reality, he was far from flexible, as he was expecting a child and wanted to avoid moving during the delivery. He thought this could be discussed further. However, because he wrote “flexible” in the bid, the developer stood firm on their decision regarding the transfer date, creating a difficult situation for this buyer. To avoid legal action and compensation, he had to accept the earlier transfer date. Unfortunately, I could only appeal to the developer to negotiate. If he had come to me before submitting the bid, I would have advised against stating “flexible” in the transfer section of the bid if he was, in fact, not flexible.

It often happens that buyers send me purchase contracts asking for help in reviewing the property they have bought. Many mistakenly believe that there are still opportunities for negotiation after they have submitted a binding bid that has been accepted. Unfortunately, that is not possible, and if the property is in order without them having checked and understood the sales material, it’s simply luck.

Read:  What is the penalty for a walk away buyer

A Call to Homebuyers

Dear homebuyer, come to me in time. Before you place a bid on a property.

It is essential to seek advice to ensure that you are making a safe transaction and a good investment. Remember, there is no cooling-off period after your bid has been accepted!

Boligdama – Trude Larsen
trude@boligdama.no – +47 950 37 330

Foto:  www.friberg.no

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Homebyuying in Norway 2025. What to expect.

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A new year means new opportunities for homebuyers. Traditionally, we divide the housing year into spring and autumn seasons. Spring often brings rising property prices, while autumn may offer falling or stable prices.

Here are some insights based on what experts have expressed through the media and my personal insights as a home buying advisor.

What Determines Housing Prices?

  • Equity and Loan Financing: In 2025, the equity requirement has been reduced from 15% to 10%. This allows more people the opportunity to buy a home. This is especially relevant for first-time buyers, as the increased access to loans may lead to greater competition for smaller homes.
  •  Repayment Capability: Banks have been given greater opportunity to assess individual circumstances, such as for families with children who have previously been assessed strictly. Loan approvals, especially if opting for fixed-rate loans, can now take into account income growth and economies of scale for families with many children. This could improve loan opportunities for many.
  •  Interest Rates: We have been waiting for lower rates for a while, but this year they are expected to reduce, according to experts and the Norwegian Central Bank.
  • Supply and Demand: Reduced new construction and a fall in completed homes can increase pressure on the secondary housing market, leading to higher prices.

Expectations for Housing Price Developments

It is difficult to predict exactly what will happen with property prices, but chief economists in most banks expect an increase of between 8-10% in 2025. Eiendom Norge (the organization of real estate agents) predicts a growth of 10%. Statistics Norway is more conservative, estimating an increase of 4.4% for this year.

Large Local Differences

The housing market varies significantly between regions. Oslo stands out with the highest prices and expected growth, but many local factors influence prices. It is essential to understand the market in your municipality to gain an accurate assessment of price development.

Remember that locally, each region has substantial differences regarding centrality, whether the housing is in a growing municipality or one with declining population growth, and many other factors such as access to public transport. The local variations are not reflected in the average statistic.

Evaluation of Individual Prices and Strategy in Bidding Rounds

With access to the Eiendomsverdi database, I can help you assess the market value of your current home and the homes you are interested in buying. Together, we can analyze the price development in the area you are considering purchasing in, allowing you to make an informed decision and pay a fair price. Who knows, you might also save some money because we collaborate on the bidding strategy and make the right moves!

Welcome to have a chat about housing prices and how we can develop a smart purchasing strategy together in 2025.

Best regards,

Boligdama,
Trude Larsen
Home Buying Advisor
T: 950 37 330
trude@boligdama.no

 Your Trusted Home Buying Advisor in Norway

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