With the south of Europe experiencing more frequent heat waves in the summer, the north is becoming more attractive. Especially if you love nature and tranquility, it is a wonderful place to stay. Are you considering a vacation home in Sweden? We list a few points of interest for you.

Viewing and bidding: public and online

It’s done, you’re totally happy because you found a super nice house in Sweden in an idyllic spot during your online house hunt. What is your next step?

First of all, of course, you want to see the house with your own eyes. So you start with a viewing. This can take place in three ways: privately, during a public viewing or online. Handy to know is that you do not need a buying agent.

This is because the Swedish real estate agent works for both the seller and you. However, you should consider hiring an advisor who knows the country and local customs a little better than you do.

As in the Netherlands, it is possible to make an offer during the viewing. However, the process is slightly different after that: the broker then asks all other interested parties if they want to offer more. If so, then the bidding process begins. This is completely transparent, public and can be followed online by anyone.

During the bidding process (public) viewings may still be scheduled. The process can therefore take longer than expected. After the new viewings, a new bidder may join the process. In addition, the bidding process only ends when each bidder indicates that they want to stop. Note: this does not mean that the highest bidder wins.

The seller chooses which bidder gets to buy the house. Therefore, the advice is to contact the seller if you can. This way you may be able to build some goodwill and possibly increase your chances.

Financial resources & down payment not a guarantee

Buying a vacation home subject to financing, is difficult in Sweden. It helps to clearly indicate that you can move quickly and have the money on hand. It is good that they are aware that if necessary, you can sign the contract the next day if necessary. That way it is clear that you are serious in the market and no financing difficulties arise.

Once there is agreement on the purchase, it is required to immediately transfer ten percent of the purchase price to the real estate agent. The remaining ninety percent must be remitted when the contract is signed.

The champagne cannot be uncorked until the signatures of both the buyer and seller are on the final purchase contract. Only then is the house yours. Until then, anything can happen. For example, even after the down payment has been made, the seller could still decide to pull the house from the sale or go with someone else. So a down payment is not a guarantee.

Foreign account acceptance

There may be another complication when buying a vacation home in Sweden. Not all brokers accept money from a foreign account. This is mainly because the administrative burden of proving that the money comes from a reliable source is on the broker. Not every estate agent is equally keen on this.

If you can demonstrate where your assets come from, the broker can be more flexible. Should you be forced to open a Swedish account anyway, know that they may require a Swedish personal number. This basically requires you to be resident in Sweden. With any luck, the broker can refer you to banks willing to open Swedish accounts for Dutch people.

It seems like a lot can happen that makes the buying process miserably long. However, this is usually just the opposite. Once the bidding has started, the purchase can be completed after a few days.

Home visit and asking questions

It goes without saying that a physical visit to the home is wise and to explore the nearby area. A photo may look nice, but the reality may be different than you thought. In addition, it is smart to ask the real estate agent of a lot of questions. Think about the zoning plan for the area.

Try to find out as much information about the property as possible. In Sweden, the seller is not required to provide a building inspection or an energy label when selling a vacation home. For permanently habitable homes, however, the seller must provide this. So when buying a vacation home, you have to find out a lot of things yourself.

The seller must declare known defects and often discloses recent repairs as well. In some cases, they also disclose that the status of the sewer or roof, for example, is unknown. This can have multiple causes, but does make it difficult to assess what kind of misery may be coming your way. Additional information such as maintenance reports or invoices can then provide some clue.

All this information is usually made public through the real estate agent’s website. If you don’t find it there, contact them. Even if you don’t understand something from the documentation, or miss important information, the key is to keep asking. Every bit of information can help you make a wise choice.

Unwanted costs, a few examples

Even things that are not defects can be unwanted. In Sweden, for example, it is not uncommon to come across vacation homes that are not suitable for winter use. This can be due to many things. For example, freezing of the water from its own well. But the heating of the cottage can also leave something to be desired. It is not standard, as in the Netherlands, to have a central heating boiler. A few electric radiators, a boiler and a fireplace can be more than enough to heat your home in Sweden, although this does add up to hefty energy costs.

Sometimes there is a central heating boiler, but it is wood-fired. Then not only do you have to throw some wood on the fire every few hours, but the device must also meet certain requirements. If not, you are not allowed to use it.

What the requirements are for wood burning and how much money it will cost to get the central heating working again are important things to know. You can factor these costs into the final price you are willing to pay for the cottage. The real estate agent can usually provide some insight into this.

Another example is that older homes are often built with asbestos-containing materials. This in itself does not have to be a problem, but should the local government determine that this must be removed, the costs will be yours. So if you are in doubt about the materials of the roof, for example, ask what it is made of.

Avoid overbidding: set a price limit

If you come across your perfect idyllic Swedish vacation home where everything is right, still don’t be fooled. Because the price in the bidding process sometimes increases by a few tens to several hundred euros per bid, you can easily end up much higher than you would like.

Of course, you can always drop out at the last minute and withdraw your bid. Because even for you, as long as there is no signature, you can still go back on your decision.

The Swedish housing market is fairly transparent and you can take advantage of that. For example, on the Swedish version of Funda: hemnet.se, you can find the Swedish selling prices of homes up to several years back. You can thus easily compare the prices of comparable homes. Based on that information, you can determine a fair price for your dream home (plus perhaps some sentimental value).

Bids can also get hugely out of hand in Sweden. So it remains wise to set a price limit for yourself in advance and stick to it.