Navigating Norway’s real estate landscape: Why home Buyers need their own advocate

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                                                                                  Foto:  www.friberg.no

In recent times, I’ve found myself at the center of a complex  debate in Norway’s real estate community. My views, particularly those I’ve expressed in the media, have drawn criticism from the Norwegian Association of Realtors, of which I am a member.

This controversy has even put me at risk of facing sanctions. While the specifics of the media coverage are in Norwegian and I won’t delve into them here, the crux of the matter is this: I’ve asserted—and still firmly believe—that there is a significant imbalance in Norway’s housing market. This imbalance stems from the fact that a single agent often represents both the seller and the buyer in a transaction.

Norway has well-educated real estate agents and robust laws governing the sale and purchase of homes. The real estate agent is indeed invaluable—when you’re selling. But when you’re buying a home, your representation is not nearly as strong.

The imbalance in Norway’s housing market

In Norway, the agent’s primary obligation is to the seller, who pays the agent to secure the highest possible price for the property. This naturally places the buyer at a disadvantage, particularly during the critical bidding process. While Norwegian law mandates that the agent must look after the interests of both parties, this ideal is often not achieved in practice. After all, it’s challenging to remain truly neutral when your paycheck comes from just one side of the table.

For those of you from other countries, this might be hard to comprehend. In many places, it’s standard practice for both the seller and the buyer to have professional assistance from their respective sides. Yet, in Norway, this dual representation model is the norm. Real estate organizations here are powerful and have a vested interest in maintaining the image of the real estate agent as a neutral intermediary.

The need for home buyer advocates in Norway

Surveys have shown that about half of Norway’s population believes real estate agents primarily represent the seller. Despite this, there are very few home buying advisors in the country—professionals who exclusively represent the buyer’s interests. I am one of the few who serve solely as a buyer’s advocate.

For now, the industry may not feel overly threatened by a lone voice like mine advocating for buyers. But it’s imperative that we foster a broader conversation about how Norway’s housing market truly functions. Buyers deserve to have their interests championed, and the market needs professionals who are dedicated to providing that support.

Join the conversation

I’m eager to hear from you. How is the balance between sellers and buyers addressed in your country? Do buyers have their own advocates, or do they rely on the same agents who represent sellers?

Let’s connect!

Whether you’re a buyer, a real estate professional, or someone with insights to share, I’d love to hear your thoughts.

Best regards,
Boligdama
Trude Larsen
trude@boligdama.no

Your Trusted Home Buying Advisor in Norway

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Can You Trust That the Seller and Realtor Give You All Important Information on a Home Sale?

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The answer is not entirely, at least not completely. Even though the requirements to provide you with correct and complete information before you make an offer on a property are strict, you cannot always trust that various risks associated with the purchase are adequately addressed in the sales material. Let me explain.

When you go through a sales prospectus for a property, you will find numerous papers and attachments. They are usually tucked behind the flowery descriptions of the property’s good and, in fairness, also some of its less favorable aspects. According to the Alienation Act, which regulates the sale and purchase of used homes, the seller has a duty to inform. The real estate agent, in accordance with the Real Estate Brokerage Act and the commission agreement with the seller, is obliged to assist the seller in fulfilling this duty.

On the other hand, the buyer has a duty to investigate and must familiarize themselves with everything disclosed about the property. It is assumed that they have knowledge of all the information provided before making an offer.

So far, so good, right?

But what about all the things that the buyer is responsible for understanding, whether by contacting the municipality, the housing association, or another public authority? Or aspects that the buyer is responsible for assuming the risk for? How understandable and clearly are these typically presented to the buyer, who is usually an ordinary consumer?

This can include zoning plans, construction plans on neighboring properties, maintenance plans in the housing association that affect future costs, or the possibility of getting approval for rooms not officially approved for permanent residence. The quality of this information can vary greatly. And if you ask the realtor, they often haven’t taken the trouble to properly look into these matters. It may seem as though they think that once the issue is mentioned or documents from public authorities or the housing association are attached, their job is done.

It’s not. And when understandable explanations of how the information impacts the specific property are omitted, many buyers become very uncertain. So uncertain that they hesitate to make an offer. And the uncertainty doesn’t diminish when they ask the realtor and they don’t know the answer. Of course, not everything can be answered with 100% certainty, but signaling that something is a bit uncertain can actually be an answer too!

When I, as a home purchase advisor, go through the sales material for properties my clients are considering buying, I want answers to EVERYTHING. And give them a clear picture of what risks may be present and whether there are any uncertainties they might have to live with. It involves a lot of digging, and when I don’t get answers from the realtor, I have to contact, for example, the municipality, the appraiser, the business manager, or the chairman of the housing association. Ideally, this should be unnecessary, as the realtor should have answers to EVERYTHING and have full oversight.

Why isn’t it like that?

Is it laziness, the fact that home sales have become an assembly line activity for realtors where they upload documentation into a sales system and assume the job is done? Or do they not want to answer certain things for fear of being held accountable later?

I think a lot can be attributed to poor preparation, automation of the sales process, the requirement for many and quick turnovers, and a lack of understanding of the buyer’s needs. And perhaps a bit of laziness as well—homes get sold anyway!

I don’t know the background for this phenomenon. But I do know that the clearer the answers buyers get to their questions about almost everything about and around the property, the more courage they have to make an offer on the property. And those realtors who take the trouble to fulfill their duty to inform and can answer or investigate all questions that come up are the ones who achieve the greatest credibility in the market.

Knowing that the information may be incomplete and you might not master the Norwegian language, it is safest to contact me for a review of the sales prospectus before you make an offer. Remember, in Norway, your offer is binding, and you must familiarize yourself with everything about the property in advance!

 

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High temperature in the housing market in Norway

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Lately, I’ve received many new inquiries for help with home purchases. Among them many people from abroad or English speakers living in Norway.

The main reason is that the housing market has come back to life and prices are rising again. With that, more people will start the home buying process. At the same time, there’s more competition for homes and quicker turnovers. In such cases, it can be nice to have some professional help and support from someone on the buyer’s side.

Here are some key figures about the housing market from April and so far this year:

  • There have been a lot of homes listed, more than at the same time in previous years except for 2021.
  • Even more homes have been sold than those listed, and the inventory of unsold homes has decreased significantly.
  • Price growth so far this year has been at 7.2%. But since there was a fall in housing prices in the fall of 2023, the 12-month growth is at 2.5%.
  • Turnover time has also decreased.
  • It is expected that many more homes will be listed leading up to the summer. Many buyers are in the market, so we can conclude that we are now in a seller’s market, albeit fairly balanced.

I’m looking forward to an active spring and early summer where I’ll have the pleasure of helping my clients find their dream homes. There’s room for more, and I look forward to hearing from you if you need a little guidance on the path to a successful home purchase.

Let us start with a non-binding digital meeting to discuss your possibilities on the Norwegian Housing Market and how I can help you with the process !

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A more stable Home Buying market in sight in Norway

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Once again, I’d like to share some exciting news with you English speakers regarding the developments in the housing market, especially in light of the sales figures for February that were released a a week ago.

There might be an excessive focus on price developments, but as a buyer, it’s important to keep an eye on prices to make an informed decision about whether to buy a property now or wait.

To address the latter first, based on the current situation, there are no indications that waiting for a price drop would be beneficial in the future if you’re looking to buy. My advice is to check the available properties and make a purchase when it suits your life situation.

We’re no longer in a buyer’s market, but the consolation is that if you have a property to sell to finance a purchase, you can be more confident that your investment might be profitable in the future.

Here are some key figures from February:

  • Housing prices rose by 1.4% nationwide.
  • Housing prices have increased by 4.9% so far this year.
  • The growth over the past 12 months has been 1.5%.
  • The average time on the market is 65 days compared to 35 days in the same month last year.
  • The inventory of unsold homes has decreased.

I’m looking forward to an exciting spring in the housing market and am eager to hear from you if you need some guidance on your journey toward a successful purchase. 

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

 

 

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