How to bid on real estate in Norway?

Av: Dato: English

The bidding process in Norway is quite different from a lot of other countries.

First – bid is binding – there are no regrets.  As soon as the seller has received the bid it is binding for you.

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

The next thing to remember is that we are using the auction principle.

The highest bid gets the property, and the bidding rounds goes amazingly fast.

The asking price is just something that the seller hopes to get for the property.

Unfortunately, many realtors put a very low asking price in the market, so the bidding rounds have a tendency to be very busy.

In the bidding round, it is a risk that you will follow another bidder far over the market level.  This is not good because you are risking losing money later.  Therefore, you should have a good knowledge about the local housing prices before you give a bid.  The realtor is working mainly for the seller to get as high price as possible and will certainly not warn you if you are rising your bids to much!

Get help to find the correct purchase price.

I can help you to indicate the correct buying price.  I have the same databases as the realtors and will analyse the house or apartment you want to buy and compare them with other similar houses sold in the area.

A couple of hours consultation at the cost of NOK 2.200 is much cheaper than paying for example NOK 400.000 over the market price.  Don’t you think?

If you buy my consulting package all the price estimates for the properties, we are looking at will be included.  Sorry for all the commercial inside an informative blog.  My point is that you should not give a bid on your own if you do not know the Norwegian market and system.

Unfortunately, I have been contacted by a lot of people who want me to help them to clear up problems after the bidding round.  Problems like not putting reservations in the bid, they have paid high over the market level or misunderstood the whole process.

This happens with some Norwegians also.  But if you don’t know the language, it is much easier to overlook important elements.

OK, here you have some words in the bidding form you must be aware of.  

Whether you use paper form or electronic.

Kjøpesum:
Purchase amount –

Do you have you enough knowledge to tell what the property is worth?

Dette budet er bindende for undertegnede frem til og med:
This bid is binding for undersigned until  – date – and time.

Seller are allowed to accept bid earliest at 12.00 noon the day after the last viewing (open house)
There are some exceptions with bids directly to seller, but the main rule is as described over.

After the first-time limit, 12.00 noon the time limit is usually 30 min.

Eventuelle forbehold
Possible reservations

This is very important to write down if you have any.

It could for example be:

We want the washing machine included.

We will have a confirmation that the leakage in the roof will be fixed by the insurance company.

The parking space is included.

If you forget to put reservations in writing it will be difficult to prove later that you made them.

Reservations about financing

If you put a reservation about financing the purchase your bid will probably not be accepted.  So this is rarely used.

Ønsket overtakelse:
Take over date – (your wish)

This is a part of the bidding negotiations.  You should ask the realtor what the seller prefer.  If you can put the same date as seller’s preference it would be an advantage for you.

But if you are stretching the price upwards you should demand a take over date that suits you best.

Financing

You must fix the financing in advance and your bank contact or other official person  must confirm that you are able to pay the bidding amount.

You put this in the bidding form:

Kjøpet vil bli finansiert slik:
The purchase will be financed this way:

Fill in contact information to the bank contact.

You must fill out your personal information and sign the bidding form (or electronic with bank id)

If you use the paper form, you also must send picture of your passport to the realtor.

The realtor will help you with filling out details.

But please do not tell him about your credit limit or budget. Or send any document about this.

He/she will use it to get a higher bid.  The only thing the realtor should know is confirmation that you can finance your bid!

This was a brief overvview of how to give a bid on property in Norway.

It is so many details that can emerge in the process, so it it not possible to tell you everything.

Please contact me if you have any doubts before giving a bid.

To be honest, I prefer that you contact me before the bidding round.  Probably it will be to late you if you already have given the bid.😊

Read: Househunting in a new country is quite challenging

 

 

 

Kommentarer (2)

Househunting in a new country is challenging

Av: Dato: English

One of my customers, relocated from New Zealand, send me some words about her experience using my services. I will like to share them with you.  It is a good recommandation of course:) But her story will also help you to understand the dynamics of the  housing market in Norway.

I would like to recommend  the services of Trude Larsen – Boligdama. She is a specialist broker/agent for real estate in Oslo. She is extremely knowledgeable, professional, knowledgeable and was very helpful when we were looking for a house to buy i Norge.

Filling the gap

Trude is a unicorn here. Norwegian real estate is dominated by the selling and NOT the buying of houses.She has worked the selling side of Norsk real estate for many years,knows how the system works, the local regions, and can help match you to a property and location.

Trude started her business, Boligdama 5 years back, because she saw the gap that exists with the buying of property here.  The regular real estate agent work mainly in favor of the seller.

Househunting in a new country is interesting and a little challenging (and can be daunting before you dive in). Therefore, it is wise to seek help in the process.

I was impressed by Trude’s work for us and will strongly recommend her if you are planning to buy a home in Norway.

 Also useful to read: Remember that the bid is binding when buying av home in Norway

 

 

 

Kommentarer (2)

Renting a home in Norway

Av: Dato: English

If you relocate to Norway and are not in a position to buy  a home. Or you just prefer to rent instead.  I work primarly with home buyers, but if you find it useful, I can also help you to find a good object for rent.

But first I want to share some information about renting a home in Norway:

It is important that prospective renters have 3 months worth of lease payments available before starting a search. It is also recommended that you make a short rental CV which can be used to present to landlords – your name, contact details, occupation, why you are living in Norway and for how long, family information (if you have children or pets moving in with you, smoker, etc).

This article is useful.  It is quite accurate about how the rental real estate systems work here.

To be able to find a home to rent finn.no is the main key.

The landlords are mainly private people who have invested in one or two extra properties.  Some of them use rental brokers, some of them self-manage. So you have to be aware of that and get a professional contract, etc.¨, especially if the don’t use a rental broker.

The main rental brokers in Oslo are:

Utleiemegleren
Krogsveen Utleie
Leiebolig.no

It is possible to make direct contact with these agents to ask about properties, however they may not have time to search for properties for you. But you might be lucky that they have exactly the property you search for available. Generally realtors will put an ad on finn.no and let people applyo them through there.

In other words: normally you have to do the search yourself, by yourself.

 I  can help you find a property to rent.

 

 I offer the following services:

1. Help you map your requirements and monthly budget

2. Suggest good areas (suburbs) to live in that meet your needs and put up a search at finn.no

3. Send property links and suggestions to you regularly

4. Give contact details of the seller/agent, or if you prefer: talk to the landlord or rental broker
to introduce you, arrange viewings  etc.

Once you have decided to visit properties:

5. You will go to the viewing yourself (If you want me to view with you it will depend on my availability and I charge separately for this service)

6. If you like the house/apartment I can offer assistance negotiating with the landlord/rentalbroker.

7. Ensure you get a legal and proper leasing contract.

I offer my services by the hour – 1.100NOK – per hour. I estimate 6 – 10 hours of research and assistance (depending on your  housing needs – location, necessities and wants in a property.

I hope this was useful.  And please contact me if you have more questions or need help.

Best regards
Boligdama

T: 950 37 330

trude@boligdama.no

Kommentarer (0)

How is the housing market in Norway in Corona times?

Av: Dato: English

Are you an English speaker who are planning to buy a home in Norway in the near future? Then you might be interested to know about the situation on the housing market right now?

High activity and rising prices

This headline summaries the situation in short.  In spite of higher unemployment rate and difficulties in many industries, people are buying new homes like never before.  It seems that the very low interest rate on mortgages overrides the negative factors of the Corona crisis.This together with an even bigger focus on the home and living conditions has led to a record number of sales during this summer and autumn.  People have maybe experienced the “home office life” and found out that they need another type or a bigger home?

Price development – updated 15.03.21

Before Corona most experts expected a moderate rise of the housing prices in Norway.  This has not been the case and the prices are now 8% higher than 12 months ago in the country as a whole.  In Oslo the price has increased with 15% the last 12 months and there are some worries that they will increase even more in the following months, up to a unhealthy level To keep up a healthy housing market it is important to have a balance between supply and the demand.  This depends on, among other things, that enough newly built homes are put on the market.The supply of houses the market has been quite good so far.  Despite that the prices have increased.  Most people have kept their jobs during the crisis and the access of reasonable mortgages has been quite good .
The main reason why the prices have increased and the demand from buyers is so high is the low interest rate.

New regulation on requirements for residental mortgage loans.

The forecast for the coming years.

Even if the economy in general will have a weak development in Norway, the experts have changed their earlier forecast regarding the housing prices.  They now believe that the prices will rice with 4% or more the coming years. Development in housing prices is very important for the Norwegian people.  Around 80% own their own home in this country and most people use a big part of their income in housing expenses.

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

Need help or want to know more?

The self-owner philosophy and favourable tax benefits for primary housing are also a trigger for foreigners who come to Norway.   As a home buying consultant I experience an increase in inquiries from this group.  With some help with understanding the system and the language they end up as satisfied home owners. Do you have question about home buying in Norway, please do not hesitate to contact me.On my blog you can read more information in English and stories from some of my customers.

Best regards
«Boligdama»

Trude Larsen T: +47 950 37 330

Kommentarer (0)