Imagine waking up one summer morning looking at a green landscape from your bedroom window, or the same landscape covered in white dust in winter. This is what you can wake up to in the Scandinavian heart of Sweden. How do I get this amazing view, you ask? By following these seven steps, you are absolutely on your way.
- Money: Whether you’re a first-time homebuyer or someone re-entering the housing market, you must pay for your home when you move. How you finance it is your decision, with your own money or with a mortgage. Whichever option you find best, you will need at least 15% of the purchase amount in cash, as a down payment when you sign the contract. If you decide to take out a mortgage, you will need to understand that Swedish banks now only accept a maximum of 75% of the purchase sum as a collateral loan with the house as collateral. Before you can get a loan, you need pre-approval from the bank.
- To lease: You can decide to live in the country or in the city – the opportunities are almost endless. Keep in mind that prices in the cities are much higher and there are more condos than houses there.
- Find a house: There are some national real estate agents; You can also find some local real estate agents depending on the location. Most real estate agencies have their own website where they show the available houses and the listing price. They can also advertise their listings on crowdsourced sites, which list all the listings from different real estate agents and sort them by location. These sites give you good chances to find your dream home in Sweden.
- Look at the house: When you have found a house; or some houses in your budget range, on one of the websites mentioned above you will be able to see the house or houses. By law, another Real Estate agent cannot represent anyone to buy a home, even if you hire an attorney to represent you if you are unable to attend. Being unfamiliar with the Swedish real estate market, I would recommend that you take the opportunity to hire your own lawyer who has a good understanding of the Swedish real estate market.
- Offers: Due to the high demand for houses, there is a chance that you will have competition to get the house of your dreams. Therefore, before starting the bidding process, you should be aware that the purchase amount may increase up to 25% of the listed price. Thus, even if you are the one who has made the highest bid, it is the seller who decides who he wants to sell to. Therefore, the highest bid does not automatically become a winning bid.
- Signing the contract: Once the bidding is over and if you have been chosen by the seller, it is time to sign the contract. But before you sign the contract, I would recommend that you get a certified home inspection, because you, as the buyer, have a certain inspection obligation to follow; if you don’t want surprises later, consult your lawyer or the real estate agent. an inspector’s agent recommended. You are signing the contract with an educated and unbiased real estate agent, but I recommend that you have your attorney with you at this time. This is now that you will have to pay a deposit on the house and, according to the contract, receive a notice that you can move into your dream house on a certain date.
- Moving: The date has come and now you can move into the house of your dreams. This is now that you must pay the rest of the purchase sum and therefore have access to the house. According to Swedish law, you must also apply for legal ratification of your property, within three months. The cost of this legal ratification is today 1.5% of the amount of the purchase plus an administrative cost.
Buying your own home is one of the biggest purchases you’ll ever make, and it’s important to be well prepared. Starting with a budget will take you far. According to me, you should have these costs in the calculation; Deposit sum (15%), Lawyer cost, purchase sum increase due to bidding (+25%), Legal ratification cost (+1.5%), other banking and moving costs. Make sure you have pre-approval from the bank if you want to finance your purchase with a mortgage before you start budgeting.
