Buying a house

A Comprehensive Guide to Buying a House in the Netherlands

Buying a house in the Netherlands is a significant decision that involves careful planning and understanding of the local property market. Whether you’re a first-time buyer, an expat, or looking to invest in property, this guide will provide you with the essential steps and considerations to navigate the Dutch housing market successfully.

Understanding the Dutch Housing Market

The Dutch housing market is known for its stability and has experienced significant price increases in recent years, particularly in major cities like Amsterdam, Utrecht, and Rotterdam. Several factors influence the market, including high demand, limited supply, and low-interest rates. While this has made housing more expensive, it has also made property a valuable investment.

1. Types of Properties: In the Netherlands, you can choose from various types of properties, including apartments, terraced houses, detached houses, and semi-detached houses. Apartments are more common in urban areas, while detached and semi-detached houses are more prevalent in suburban and rural regions.
2. Leasehold vs. Freehold: Property in the Netherlands can be purchased as freehold (eigen grond) or leasehold (erfpacht). With freehold, you own both the property and the land. With leasehold, you own the property, but the land is leased from the municipality or another owner, often requiring annual payments.
3. Housing Market Challenges: The Dutch housing market is highly competitive, especially in major cities. Bidding wars are common, and properties often sell above the asking price. It’s essential to be prepared for a fast-moving market and to act quickly when you find a suitable property.

Steps to Buying a House in the Netherlands

1. Determine Your Budget: Before you start house hunting, determine how much you can afford. This will depend on your income, savings, and the mortgage amount you qualify for. Dutch banks typically lend up to 100% of the property’s value, but you’ll need to cover additional costs such as transfer tax, notary fees, and real estate agent fees. Be sure to keep receipts for all these costs since they are tax-deductible. As a rule of thumb you can budget to spend an amount of around 10% of the purchase price on these additional costs.
2. Get a Mortgage Pre-Check: It’s advisable to get a mortgage pre-check (biedcertificaat) from a bank or mortgage advisor before making an offer on a property. This not only gives you a clear idea of your budget but also strengthens your position as a buyer in the eyes of sellers. Non-Dutch residents can also apply for a mortgage, although the terms may differ depending on your residency status. The biedcertificaat is usually provided as a free service (in the hopes that you will come back to them to arrange your mortgage after purchasing a house).
3. Find a Real Estate Agent (Makelaar): Hiring a real estate agent can be incredibly helpful, especially if you’re unfamiliar with the Dutch housing market. A buyer’s agent (aankoopmakelaar) will assist you in finding properties, arranging viewings, and negotiating the purchase price. Agents in the Netherlands typically charge a commission fee ranging from 1% to 2% of the purchase price.
4. House Hunting: Begin your search by browsing online property portals such as:

• Funda.nl: The most popular platform for buying and renting properties. This is owned and operated by the association of realtors NVM.
• Pararius.nl: Another well-known site, especially for rentals.
• Jaap.nl: Offers a wide range of listings, including foreclosures and new constructions.
  
  When you find a property you like, schedule viewings as soon as possible, as homes can sell quickly. This can usually be done from the website itself, but if houses in the target area are selling fast calling the realtor directly might help (if a specific realtor has a lot of listings that you like it will be helpful to let them know you are looking for something specific so that they might proactively come back to you). Most sites also offer the option to save search queries which will email new additions to you.
  Viewings will give you the chance to investigate the house and ask questions to the realtor. Most viewings are around 30 minutes but if the house is not in much demand you might have more time (or come back for a second viewing). It is difficult to fully assess the house in this time, but if you plan on not doing a technical inspection (which might increase your chances of getting the house) this is your only option to inspect everything. As a buyer you have the legal obligation to do your own inspection so if you miss something here you will not be able to get compensated for it after the purchase (unless it consists of a verborgen gebrek). It is advisable to go for a technical inspection by an expert before finalizing the contract or add a clause in the contract that allows cancellation of serious constructional flaws (for example: the municipality of Zaandam has serious foundational issues) show up during the inspection.
  

1. Make an Offer (Bieden): Once you’ve found a property you’re interested in, you’ll need to make an offer. This usually includes the price you’re willing to pay, any conditions (such as financing), and the desired completion date. In competitive markets, offering above the asking price and waiving certain conditions (such as a financing clause) may improve your chances, but this comes with risks. As mentioned before a technical inspection might be a clause to add. Not having this clause could mean significant additional investments would be needed to make the house livable. A financing clause offers the possibility to cancel the purchase in case a mortgage cannot be arranged for a set amount of money. This is helpful in case the (partner of the) buyer loses (part of their) income after the purchase agreement has been signed. For example: a temporary contract is not extended. If the financing clause is not there the only possible exit from the contract might be the boetebeding where the contract can be broken by paying 10% of the agreed purchase price to the other party. Not only is this a significant amount of money, it only works if the other party is willing to accept this (which is optional).
2. Sign the Purchase Agreement (Koopovereenkomst): If your offer is accepted, the next step is to sign the purchase agreement. This legally binding contract outlines the terms of the sale, including the purchase price, transfer date, and any conditions. After signing, you have a three-day cooling-off period during which you can cancel the contract without penalty. If you buy a to-be built house (nieuwbouw) then this is a little bit different. In this case you sign a Koop-aanneemovereenkomst (kao) where you buy or lease the land and at the same time contract the construction company (aannemer) to build a house on that land.
3. Mortgage Application and Valuation: After signing the purchase agreement, you’ll need to finalize your mortgage application. The lender will require a property valuation (taxatierapport) to determine the property’s market value. This valuation is important as it affects the mortgage amount you can borrow. The taxation can be done by a registered taxateur and has to be performed according to the norms set by the NWWI. For the mortgage application there are a lot of different options, from execution only to full-service from a mortgage advisory agency or direct from a mortgage provider like a bank. Any advice trajectory costs money, and many mortgage providers only work with agencies. When selecting a mortgage advisor check that they have the required certifications from the Wet financieel toezicht (wft).
4. Transfer of Ownership (Eigendomsoverdracht): The final step in the process is the transfer of ownership, which takes place at the notary’s office (notaris). The notary will prepare the deed of transfer (akte van levering) and the mortgage deed (hypotheekakte). Once both parties sign these documents, the notary registers the property in your name at the Land Registry (Kadaster). At this point, you’ll receive the keys to your new home. You will have to pay for both deeds, and both have to be signed during the same session at the notaries office. The buyer usually selects the notary, but this is negotiable. At the time of the appointment with the notary all money has to be in the notary’s escrow account. To buy the house you need the mortgage, but you can only get the mortgage if you own the house. That is why both deeds are connected and have to be signed at the same time.

Costs Involved in Buying a House

Buying a house in the Netherlands involves several costs beyond the purchase price. These include:

1. Transfer Tax (Overdrachtsbelasting): Typically 2% of the purchase price for existing homes, but first-time buyers under the age of 35 may be exempt for properties up to €440,000. If the home purchased is not for own-use but a second (or more) home then this is 10%.
2. Notary Fees: Usually between €1,000 and €2,500, covering the cost of preparing and registering the transfer and mortgage deeds. If you are the buyer and can choose the notary it is good to shop around and check if additional deeds are needed (samenlevingscontract, testament) to get a good deal.
3. Real Estate Agent Fees: Generally 1% to 2% of the purchase price, if you use a buyer’s agent. The use of a buyer’s agent is optional, but a skilled negotiator can be worthwhile. When contracting a buyer’s agent make sure that the deal is set up so that sharp negotiation is financially beneficial for the agent. Generally they will prefer a deal with a fixed fee but then it is in their interest to close the deal as fast as possible, even if the terms for you as a buyer are less favorable.
4. Valuation and Survey Fees: A property valuation report costs around €400 to €800. A structural survey, while optional, is recommended and costs about €300 to €600. The valuation is mandatory, the survey is optional and part of the negotiations. If you buy a new-built home you can also have an expert do a pre-inspection before handover from the builder, this is in most cases value for money.
5. Mortgage Arrangement Fees: Banks charge a fee for arranging a mortgage, typically around €1,500 to €3,000. This fee may include advice from a mortgage advisor. Banks will offer only their own products, while advisers may offer products from multiple mortgage providers. A good adviser will lead the customer through the entire process in a timely manner. You may have to talk to a few to find one which you vibe with.

Conclusion

Buying a house in the Netherlands is a complex process that requires careful planning, a good understanding of the market, and attention to detail. Whether you’re drawn by the charm of Dutch cities, the stability of the property market, or the prospect of owning a home in a new country, the Netherlands offers a wide range of opportunities for prospective buyers. By following the steps outlined in this guide, you can navigate the process with confidence and find a home that meets your needs and budget.