The biggest hidden cost: overbidding
In the Netherlands, properties are usually listed at below their actual market value. So the asking price you’ll see is likely to be at least 5% below the real value. Often, it can be as much as 10% below – or even more, especially in popular areas of expensive cities like Amsterdam.
This means a property listed at €400,000 could easily sell for €450,000.
Which means that if you have a mortgage approved for €350,000, and savings of only €50,000, you can’t afford the house.
When you’re applying for mortgages and setting your budget, it’s vital you take the overbid into account.
You can also consider using Roofmatch. We use an AI-assisted bidding calculator that pinpoints the most likely winning bid using 12,000 data points. This typically saves our clients €20-50k, as they don’t need to overbid excessively to win the property.
2% transfer tax
Most buyers in the Netherlands will pay transfer tax at 2% of the purchase price.
If you’re buying a €400,000 home, that’s €8,000 – another big chunk of money that must come out of your savings.
However: if you’re a first-time buyer, you may be exempt. You won’t pay the tax if you’re under 35 years old, and buying a property at less than €555,000.
Notary fees
When you buy a property in the Netherlands, you’ll need to pay a notary (legal professional) to deal with all legal aspects of the transaction.
This includes drafting the property and mortgage deeds, registering the transfer of ownership and making sure transfer tax is paid.
The costs vary, but you should expect to pay around €1,000–€3,000.
Not a huge amount in comparison to the property price, but still another non-optional cost that must come out of your savings.
Mortgage advisor fees
If you need a mortgage, you’ll almost certainly need a mortgage advisor. Some buyers are tempted to try and manage without one, but it’s usually a mistake and can end up costing you more.
A mortgage advisor will be able to help you:
- Identify your exact borrowing power, taking into account your income, work history and any debts.
- Find you the best deals for your situation, with the most favourable rates.
- Handle applications and paperwork on your behalf. If you’re not Dutch, this is especially difficult to do without help.
- Make sure there are no hiccups – especially important since failing to secure finance after you have a bid accepted can mean you’re liable to pay a penalty of 10% of the purchase price.
An advisor typically costs €1,500–€3,000, which must again come out of your savings.
Valuation fees
Before they can approve your mortgage, your lender will need a valuation report to confirm what the property is actually worth. If the valuation finds
This costs around €500–€1,000, and is especially important if you overbid, because the valuation will affect how much your bank can lend to you.
Building inspection costs
A building inspection costs around €500, and is important, even if you think the property is in good condition.
The inspection will include all visible parts of the building, both inside and outside, and can help uncover hidden damp spots or structural problems that you might not otherwise know about.
It means that if repairs are needed, you’ll have a good idea of potential costs before you buy – potentially saving you thousands.
Buyer’s agent fees
It’s not compulsory to have a buyer’s agent, but it’s usually beneficial. An agent will help you:
- Decide on the right bid to make (especially important if you’re buying in a popular area where overbidding is a must).
- Give you access to property listings that aren’t yet on Funda, so you can book viewings before everyone else.
- Negotiate with the seller and make sure everything runs smoothly from viewing to keys in your hand.
Some sellers are reluctant to deal with a buyer who doesn’t have an agent, because they know that those without an agent may struggle with paperwork or make mistakes.
However, traditional agents are expensive. They’ll usually charge a percentage fee of around 1-1.5% of the purchase price. Which means you could pay as much as €7500 on a €500K property.
Percentage fees also give agents a huge incentive to encourage you to bid as high as possible, which can cost you even more.
Thankfully, this is one area where you can save money. Roofmatch charges a fixed fee starting at €1799.
This is likely to be less than half the fee you’ll pay at a standard agent.
How much will hidden fees cost you in total?
This depends hugely on the purchase price, but you’re likely to need to put aside:
- Around €10k for notary, mortgage advisor and agents fees, plus the valuation and inspection costs.
- 2% of the purchase price for transfer taxes, if you need to pay them.
- Your overbid amount. On a €400k property, that’s likely to be around €20k.
That’s around €30k in total, assuming you’re exempt from transfer taxes.
Save €20k+ by using Roofmatch as a buyer’s agent
There’s no avoiding the fact that buying a house in the Netherlands is expensive.
But Roofmatch is set up to save you as much as possible, with:
- Fees starting from €2,599 (usually less than half what you’ll pay for a traditional agent).
- An AI bidding calculator that helps you find a winning bid without paying more than you need.
- A team of experienced agents who’ll support you through the whole process (just as you’d expect from any other buyer’s agent).