Thinking about buying a home? It's one of life's biggest decisions and investments, and it can be an incredibly difficult and overwhelming jungle to navigate. It's a long and winding road from dreaming about a home to your dream home — to your new home. Here you can get a lot smarter about buying a home, and what to be aware of throughout the entire purchase process.
The current housing market in 2023 — is it a good time to buy a home? At the time of writing, inflation is high in Denmark and consumer prices are therefore also high. It can feel uncertain for home buyers to venture out onto the housing market's ice, since the market can change very quickly. But right now we see a truly unique opportunity for home buyers, especially first-time buyers. Read much more here about being a first-time buyer.
There is a large supply of homes — particularly in the big cities of Copenhagen and Aarhus — which is pushing home prices down. We are largely in a buyer's market, and it has never been as advantageous to be a buyer as right now.
But… is there ever really a bad time to buy a home? No — as long as your investment horizon is long enough, there is no bad time to buy a home. We recommend a horizon of 5+ years.
You can read much more about when it's best to buy a home in this article, where our housing expert and financial advisor Christopher Wagner and Jovica Stankovic go into more detail and give good advice on the best timing for buying a home.
How much can I afford to buy a home for? Among other things, it's the bank that assesses how much you can afford to buy a home for. Here, a number of factors are considered regarding your current situation and age — as well as your debt and own financing, such as your monthly disposable income and your ability to make a down payment.
You can read much more here about the down payment for a house or owner-occupied flat when buying.
Buying a home step by step. Are you first-time buyers? Then there may be a lot more anxiety and fear involved when you have to make one of life's biggest decisions. It's always a good idea to consult one of Bomae's buyer's advisors, who can give you exactly the right advice and help you with the dialogue with the bank.
What should you be aware of when buying a house?
Buying a house is a very large investment, so naturally there are a number of considerations you need to make from the moment the dream of a house arises until you find the right solution.
Is this your first house purchase, and would you like to be properly prepared for what you need to know as a first-time buyer? Then read our guide here, which helps you through buying a house as a first-time buyer.
The first thing you need to think about when considering buying a home is:
- Where in the country do you want to live? How close should the home be to school, work, hobbies or nature?
- How much space do you need? It's a good idea to think further into the future regarding children.
- What condition do you want the home to be in? A fixer-upper — or move-in ready?
It's important that you make careful considerations so you can narrow down your home search. It's also important that you are realistic when making these considerations. It's fine to dream, of course — but if you don't want the purchase process to become too overwhelming, and you don't want to end up disappointed, it's a good idea to weigh all the pros and cons before proceeding with your home search.
Other good advice before you start factoring buying a home into your plans:
- Have a clear picture of your financial situation.
- Is there a maximum price you're willing to pay for the home?
- Consider a pre-approval for a loan.
When you're going to buy a house, there are also a number of pitfalls to be aware of — and therefore also a number of unforeseen costs you should steer clear of. Before you start getting too attached to the house you've picked out, you need to pay particular attention to the condition of the house, but also the plot. The condition report (tilstandsrapport) will also reveal this.
Documents and condition reports. There are a number of documents and reports you should review before committing to a home. This is important if you want to avoid unforeseen financial costs. These may include documents such as:
- Condition report (tilstandsrapport)
- Electrical and plumbing installation report
- Change-of-ownership insurance (ejerskifteforsikring)
- Energy label
- Sales listing (salgsopstilling)
Do you need help with the condition report? Get a building surveyor assigned from Bomae.
Price negotiation when buying a home
Once you've found your dream home, the price negotiation begins. This can be a big challenge, especially if you're a first-time buyer and are more cautious. What's the right price, really? In many cases, the right and most competent price negotiation can actually save you a great deal of money — both in terms of the bank loan, interest, repayments and term — but also the right price for the home itself. Get many more good tips for price negotiation here.
Reviewing the purchase agreement
Once the negotiations are settled, it's time to review and sign the purchase agreement. The purchase agreement consists of the terms and conditions you agreed on during the negotiations. This purchase agreement is typically very extensive and text-heavy — written in technical language that can be difficult for the average Dane to fully understand.
In that case, it can make a lot of sense to have a legal advisor look over the agreement for you and spot any gaps and pitfalls — so you don't end up with regrets once you've signed and the deal is done.
Read more about reviewing the purchase agreement here
Drafting the deed and land registration
A home purchase is concluded with drafting the skøde (the deed) and tinglysning (land registration), as part of the finalization process that aims to realize and formalize the home purchase. The deed documents the seller's transfer of the home to you as the buyer. The drafted deed must then be submitted for land registration. The land register (tinglysning) is the official register of rights over the property. Both drafting the deed and land registration are essential to concluding the home purchase. Once you — and the seller — have signed the contract, you must deposit the first part of the down payment once the deed has been registered.
Read more about drafting the deed and land registration here
Help with buying a home
For a long time, it has been the norm for the buyer to stand more or less alone against the seller and the estate agent — who have far better resources to negotiate than you do on your own. Fortunately, that's no longer the reality — because at Bomae, we have your back throughout the entire purchase process. That includes home advice, financial advice (home loans) and legal advice.
Fill in the contact form so we can talk about how we can help you with buying and financing your home.
We're ready to review and calculate the implications for you.
