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

Av: Dato: English

                                                                                  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

Kommentarer (0)

High temperature in the housing market in Norway

Av: Dato: English

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 !

Kommentarer (0)

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
Kommentarer (0)

Anne and Don’s Rapid Journey to Owning a Norwegian Holiday Home

Av: Dato: English

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.

 

Kommentarer (0)