Is it possible to bid on a property in Norway without having an account with a Norwegian bank?

Av: Dato: English

I have previously written about how to finance home buying in Norway.   With this blog article I would like to provide some additional information to make the picture complete.

As informed, it’s not possible to get a loan from a Norwegian bank unless you have a D-number from the tax authorities and receive your income in Norway.

If you have the funds to finance the entire purchase, everything becomes much easier.

However, it’s not that simple. You may bump into some problems during the bidding round:

When bidding for a property, the real estate agent wants confirmation that you can finance the offer. Ideally, they would like this confirmation from a Norwegian bank. However, it’s not straightforward because Norwegian banks require you to have a D-number from the tax authorities to open a bank account. No matter which bank you inquire with, you will receive the same response: no bank account without a D-number.

This position seems to be a bit of a “catch-22” situation.

But even without a bank account and confirmation from a Norwegian Bank there is hope:

One possible solution may be to inquire with the real estate agent whether the seller would accept a  confirmation from your home country’s bank, an employer’s statement, or if similar documents may suffice. It’s entirely up to the seller (and the real estate agent) to decide what they are willing to accept as adequate confirmation.

If there are no other bidders in the competition, and the market is somewhat slow, as it is right now, they are likely to approve alternative solutions. If there is a high demand for the property, they will prefer to sell to someone who can provide confirmation from a Norwegian bank.

If such a solution is accepted, the payment for the property will be transferred to the client account of the real estate agent. They will take care of ensuring compliance with anti-money laundering regulations, including confirmation from you regarding the source of the funds.

When the property is registered in your name, you will simultaneously apply for a D-number to establish ownership. With this, you will have the option to open a Norwegian bank account if you wish, for example, to manage the property’s expenses.

This can be somewhat complicated. I’ve had inquiries from people who found the process with the bank account and so on,  so convoluted that they gave up on the whole project of buying in Norway.

But with a little assistance, it can be resolved. Please get in touch with me if you’ve found a property you’re interested in, and I can negotiate and clarify the situation with the real estate agent.

Best wishes
Boligdama – Trude Larsen
+ 47 950 37 330 – trude@boligdama.no
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Anne and Don’s Rapid Journey to Owning a Norwegian Holiday Home

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Anne and Don, hailing from New Mexico, USA, embarked on an exciting journey to purchase a holiday home in rural Norway, guided by the invaluable assistance of Boligdama, Trude. Facing initial hurdles with unresponsive Norwegian realtors, their remarkable journey unfolded in just one weekend, culminating in the successful acquisition of their dream property.

Anne and Don, residents of New Mexico, USA, had long nurtured a deep affection for Norway, drawn to its natural beauty and Anne’s ancestral ties. Their dream was to secure a holiday home in a rural Norwegian district, a place to escape to, and a canvas to showcase their treasured furniture from Anne’s grandparents’ house.

With a budget in mind, the couple meticulously scoured listings and shortlisted three potential properties. However, their enthusiasm waned as they encountered an unexpected roadblock—Norwegian realtors remained frustratingly unresponsive. Stuck in a sea of uncertainty, they desperately sought guidance and support.

One fateful day, Anne turned to the internet in her quest for assistance. A simple Google search led her to Boligdama, Trude, a name that would soon change the course of their journey. Boligdama quickly proved to be a godsend, offering the expertise and reassurance they so desperately needed.

Boligdama’s Touch: Transforming Desperation into Homeownership Bliss

Armed with Trude’s guidance, Anne and Don had found a charming property in Telemark, discovered through the online platform finn.no. Despite the property needing some renovation, Trude made sure they were fully aware of the renovation challenges. Luckily, the couple, experienced DIY enthusiasts, were undeterred.

As the weekend dawned, Anne, Don, and Trude decided on a strategic approach—they opted for a secret bid, aiming to negotiate without competition from other potential buyers. Trude efficiently handled the paperwork, and the bid, which was NOK 50,000 below the asking price, was submitted to the realtor.

The trio had to wait until Monday for a response, as the realtor needed to verify the buyers’ financing with the bank. The clock ticked, and anticipation grew. Finally, at noon on Monday, the long-awaited answer arrived—a positive response, albeit with some details to iron out.
With hearts pounding and excitement, Anne and Don eagerly reached out to Trude to finalize the details. Remarkably, they were awake at 05:30 AM in New Mexico, unable to sleep due to their overwhelming excitement.

In a whirlwind of negotiations and confirmations, Anne and Don’s dream of owning a holiday home in Norway came to life in a mere weekend.

Anne and Don’s Testimonial: Boligdama’s Invaluable Support

Anne and Don reflect on their incredible journey with Boligdama, expressing their deep appreciation for the guidance and confidence she brought to their home-buying experience.

We had been looking for a house to buy in Norway for years. We wanted an older home and some land. Finally, we decided to make the leap and find a place to enjoy and bring our treasured furniture from my grandparents’ house out of storage. Our budget constrained us, and we found ourselves stuck, unable to get in touch with realtors and clueless about how to proceed.  Feeling desperate, I turned to Google with a simple plea: ‘I need help buying a house in Norway.’ That’s when Boligdama appeared, and it was truly a godsend! The rest, as they say, is history. We couldn’t have done it without her, and with her help, we felt confident in our choice. Thank you, Boligdama!

 

Please download my booklet to get a short brief on the home buying process in Norway.

 

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Interesting news about the housing market in Norway

Av: Dato: English

This September we have seen quite significant changes in the home buying market in Norway.

Therefore I have to write about the market and housing prices – AGAIN.

Hope you are OK with it.

After all, to keep oneself updated on the market is a big factor for achieving a successful purchase!

Two important factors implicate a development towards a buyers’ market this autumn:

  • Decrease in prices with 2,2 % in Oslo – 2,5% in september
  • More houses up for sale in september – 17% more than last year

Falling prices are expected for the rest of the year and probably also in 2023.  Then it will start to increase again according to the forecasts. The sales volume is now back on pre pandemic level.

The reason for the decrease in  prices is obviously the increased mortgage interest and increase in prices on electricity and other living costs.

A buyers’ market is good news if you are buying a home in Norway for the first time.

If you already have a property to sell and want to buy a new one, and your mix of equity of mortgage is comfortable, there is no reason why you should not buy a new home now, if you feel it is needed.

Just remember the rule – Sell and buy in the same market

Timing is everything

Download my booklet about home buying in Norway for free here

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Can you trust the bidding and the home sale system in Norway?

Av: Dato: English

When I am working with my home buyer costumers from different countries, they are often wondering if we can trust the various actors and the transparency of the process.

The question is wise, and I totally understand it.  The process is quite complicated with a lot of different people and systems involved.  And maybe you have bad experiences from your own home market.

I like to put some remarks on this issue.

All in all, the home buying sale process in Norway is safe and transparent.  Of course, the realtor is trying to get you to pay as high price as possible.  The seller is his client, and he is paying his fee.

But according to the law the realtor is also obliged to take care of the buyer’s interest.  And make sure that the adds, sales material and oral information are correct.  The realtor is together with the seller, responsible to give all known information about the property, before the bidding round.

Read:  Be aware of new regulations for home buying in Norway

The last twenty years the home buying market and the real estate business has become more and more regulated.  This is based on a wish from the authorities to create a safe home buying process.  But it has also been necessary because of some professional short cuts the realtors have taken to promote their own interests. You know, when profit is in the picture, people always want to take advantage of it.  Within in the law or on the edge of the low.

The Norwegian “Finanstilsynet” is responsible for the supervision and control of the real estate agents

We also have the consumer authority and other  complaint bodies where consumers, seller and buyers can complain if they experience bad practice. And of course, we have the the court system.

So, on the formal side everything is in order.

But when it comes to whom to trust in the home buying process, many buyers tend to not put totally trust in the realtor.  Because he is the seller’s representative, and his priority is to get the highest price The realtors in Norway have to fulfil the Bachelor grade in Real Estate and have work practice before they can take independent sales assignment.  So, they know what to do, and what laws to follow.  But because of the competition among the realtors and the hunt for the highest price, some buyers experience bad customer care on their behalf.

This unbalance between seller and buyers need in the home buying process, is the reason why I started as a home buying consultant.

One important thing in the end:

Fake bids

Many of you are anxios about this. Understandable, especially when we practise the principle of auction and  bidding rounds administrated by the realtor.

Fake bids are luckily no longer an issue in Norway.  All the bids must be registered in a journal by the realtor. If you buy the property, you will receive the bidding journal with all the bidders name, time of the different bidders and amounts.  If you are only participant, but not a buyer you can ask for the same journal but without names.

Also, the realtor is obliged to check the bidders financing in their bank.  In that way he will know that the bidder is a serious one that are able to pay for the property.

 

 

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