Meglerverdivurdering (broker valuation)
A meglerverdivurdering, also written meglers verdivurdering, is an estate agent's estimate of what a property is worth in the current market. It is the most common form of valuation that Norwegian homeowners encounter, because many obtain one free or cheaply from a broker in connection with a possible sale, a refinancing or simply to know what the home is worth. The valuation draws on the broker's market knowledge, comparable sales in the area and a viewing of the home.
It is important to understand what a meglerverdivurdering is and is not. It is the broker's professional market assessment, not a technical review of the home. The broker assesses location, standard, size and what similar homes have actually sold for, and arrives at an estimate of the expected sale price. It says little, however, about the technical condition of the building; that is covered by a takst (surveyor's valuation) or a tilstandsrapport (condition report) from a qualified building surveyor. A meglerverdivurdering is also not the same as an e-takst, a standardised valuation product that many banks require for a mortgage, even though a broker often provides both.
The meglerverdivurdering is used in several situations. Ahead of a sale it gives the seller a starting point for the asking price and for choosing a broker. For refinancing or additional borrowing, the bank may ask for a valuation in order to set the loan-to-value ratio, although banks increasingly require the more formalised e-takst. And for an owner who simply wants to know what the home is worth, it is a low-threshold estimate. Because the valuation is often offered free as part of winning a sales mandate, there can be a built-in interest in setting an attractively high estimate, something a critical reader should keep in mind.
The relationship to the other value concepts is worth keeping clear. A meglerverdivurdering is an estimate of market value, that is the expected sale price, and differs from formuesverdi (taxable value) and from an independent valuation or takst carried out without a sales interest. For commercial property, similar assessments are usually made by specialist valuation firms using heavier methodology, where cash flow and yield requirement are central, rather than by a residential broker.
The accuracy of the valuation depends on how many comparable sales exist. In an active market with many similar homes the estimate is usually precise, while for unusual properties, large homes or areas with few transactions it becomes more uncertain. Valuations then tend to vary more between different brokers, and an independent takst or a more thorough valuation gives a safer basis than a quick market estimate.
In Placepoint you can retrieve much of the same basis a broker uses in a valuation: the property's data from the matrikkel, ownership history from Grunnboken and earlier transactions in the area, so that you can check or prepare a value estimate.
From Placepoint's glossary: Meglerverdivurdering
More information: Finanstilsynet: glossary for estate agency, Eiendomsmeglingsloven (the Estate Agency Act)
English: Real estate agent's valuation (meglerverdivurdering / meglers verdivurdering; an estate agent's market-value estimate of a property).
Frequently asked questions
What is a meglerverdivurdering?
A meglerverdivurdering, or meglers verdivurdering, is an estate agent's estimate of what a property is worth in the current market, based on market knowledge, comparable sales and a viewing.
What is the difference between a meglerverdivurdering and a takst?
The meglerverdivurdering is a market assessment of the expected sale price. A takst or tilstandsrapport assesses the technical condition of the building and is carried out by a qualified building surveyor.
Is a meglerverdivurdering the same as an e-takst?
No. E-takst is a standardised valuation product that many banks require for a mortgage. A broker can provide both, but an informal meglerverdivurdering does not follow the same fixed template.
Can I trust a free meglerverdivurdering?
It is a genuine estimate, but since it is often offered free as part of winning a sales mandate, there can be an interest in setting the estimate attractively high. It is worth obtaining valuations from several brokers.
What is the difference between market value and formuesverdi?
Market value is the expected sale price, which a meglerverdivurdering estimates. Formuesverdi is a taxable value set by Skatteetaten (the Norwegian Tax Administration) and is normally far below the market value.