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The broker association has sent out reminders to price homes correctly. The Norwegian Consumer Agency will not rule out new bait price controls.
MILLIONAVVIK: Several houses in Oslo have sold at prices much higher than advertised this fall.
Håkon Mosvold Larsen
Published:
The brokerage in the capital is cautioned not to finish against the law after rounds of bidding in which the final sum has been raised several million crowns above the advertised price.
The Norwegian Consumer Agency has penalty options against real estate agents who are caught in lure prices.
– We have also noticed the big differences in the advertised price for some home sales. We will follow this in the future, says director Jo Gjedrem.
This week, E24 mentioned a refurbishment item in Oslo that was 3.5 million higher than the MSRP. It came days after DN mentioned a single-family home that was exceeded by 5.8 million. The brokers of both sales owe an unexpected and strong willingness to pay.
E24 has also followed other sales processes this fall where price suggestions are exceeded by the millions in bidding rounds.
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Brokers received price reminders
The Norwegian Real Estate Association (NEF) believes that the examples above all show a hot and unpredictable Oslo market, and not brokers trying to fool anyone.
However, the association of real estate agents recently sent its members a reminder to properly value homes. This is confirmed by director Carl O. Geving.
They say they want to avoid the strong price deviations of a not so distant past you can visit Oslo again.
– A few weeks ago, we reminded our members of the broker responsibilities and the guidelines that apply. With the help of the necessary tools, brokers must do their best to price homes correctly and also document that assessment, says the NEF director.
– It is natural that the price deviation is greater in a rising market, as we have now. At the same time, brokers should price this development as soon as possible and adjust the price indications. We must prevent it from becoming a problem.
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Average price of this street last year: NOK 11.3 million
Expect small deviations in the future
– Now, most of the brokers in Oslo have seen the growth of house prices in the fall: will it then be acceptable if houses continue to rise so much above the suggested price?
– When the market is so hot, we have to settle for positive deviations. But I hope that the industry can keep up with the evolution of prices in the future, answers the main broker.
The Norwegian Consumer Agency asks consumers to be vigilant.
– I encourage you to complain if you find attractive prices. It could be, for example, if you have won bidding rounds well above the suggested price, but the seller of the house is still unwilling to accept, says Gjedrem.
– Is it relevant with a new supervisory action in Oslo?
– We have no concrete plans for this now, but we are closely monitoring the market and will not rule it out.
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Large or insufficient gaps
So far, the Authority has not considered any home sales in Oslo this fall. Therefore, they also do not have a precondition to assess whether price indications have been set illegally low, Gjedrem emphasizes.
But it reminds realtors of the rule that applies:
– You should not establish a price suggestion that is lower than what the brokers’ evaluation dictates, nor a price lower than the one that the seller of the house is willing to accept.
The wording of the rule means that large differences between the advertised price and the sale price are not in themselves an illegal bait price. An assessment is required that the broker has acted against better knowledge.
This may be because, for example, the seller of the house has given a clear message to the broker that the indication of the price is completely irrelevant.
– It is not uncommon for them to simply miss large
Previously, the Norwegian Consumer Agency also concluded the price of the lures after a general assessment of home sales to a brokerage office, where price suggestions are systematically set below the sale price.
It was such investigations that resulted in ten broker chains being taken to get lure prices in 2016.
Individual sales, on the other hand, are very difficult to read, Gjedrem notes:
– There can be many reasons why the price ends up higher. It may be a deliberate strategy of the broker, but it also happens that they simply make a big mistake. It is not uncommon in periods of price growth, he says.
Following strong reactions in 2016, the Norwegian Consumer Agency has not perceived lure prices as a widespread problem in Oslo in recent years.
Neither does the association of runners. Still, Geving thinks the price reminder was in order.
– There are several young people in the industry who did not live 2016.
