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

Av: Dato: English

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

Kommentarer (0)

Homebyuying in Norway 2025. What to expect.

Av: Dato: English

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

Kommentarer (0)

Independent home buying advisors are very uncommon in Norway, but I am one of them

Av: Dato: English

Did you know that, as far as I know, I am the only independent home buying advisor in Norway?

Here in Norway, the real estate agent is supposed to be a mediator and assist both the seller and the buyer. According to the law, they «must show concern for the interests of both parties.»

However, since the seller pays the agent’s fee to secure the highest possible price for the seller, the agent is neither independent nor able to equally protect the buyer’s interests. This often becomes evident during the bidding process and even in the property presentation. The goal is to make the property appear as attractive as possible to get the best price. There are strict rules regarding the information that must be provided, so the buyer is not without legal protection.

Nevertheless, many buyers seek my help to ensure they purchase the right property at the right price. In recent years, my share of foreign clients has grown significantly. They want guidance from someone who is on their side and knows the market and system here in Norway.

Another important aspect about home buying in Norway is the buyer’s duty of inspection which is regulated by law. The bid is binding, and there are no regrets. Therefore, if you are unable to understand and read everything in the sales material, you may overlook important aspects of the property you want to buy and face problems afterwards.

Contact me to learn how I can help you with a successful home buying !

Kommentarer (0)

Market update housing market in Norway October 2024

Av: Dato: English

Housing prices fell by 0.6% in September. So far in 2024, housing prices in Norway have increased by 7.6%. In Oslo, housing prices fell by 0.7% in September.

Last year and the year before, prices and transactions dropped significantly during the fall, and the market almost came to a standstill. That is unlikely to happen this year, but it is expected to be a somewhat calmer market with continuing falling or stable prices leading up to the New Year.

In the new year 2025,  when good news about interest rate cuts is likely to come, and possibly also some easing of lending regulations, there will probably be a highly competitive market for homes.

So if you’re looking to buy, you have a window now where you can purchase at a good price without too intense bidding wars. In Norway, the auction principle is practiced in property purchases. This means that multiple bidders and active bidding rounds contribute to driving prices up. This autumn, you have the opportunity to be the only bidder or one of a few bidders. This gives you the chance to secure the bid at an acceptable price. I have a good overview and systems for estimating the correct purchasing price, and I will assist you through the bidding negotiations.

Why not buy now and sell in January, for example? For those who have nothing to sell, the choice is simple: Go and buy!

If you would like to have a conversation about what could be advantageous for you and get help in finding the right home, I am here for you ❤️

Boligdama – Trude Larsen

Your Trusted Home Buying Advisor in Norway

T: +47 95037330
trude@boligdama.no

 

 

Kommentarer (0)