Valuation
A valuation is an estate agent's estimate of market value, usually documented on a one-page statement. It is less formal than a takst (formal appraisal), with no technical inspection of the building, and is typically used for refinancing, first contact with a potential seller, or to give an early price estimate before any sales assignment.
The valuation is based on the agent's knowledge of the local market, comparable sales over recent months, the location of the property, the usable floor area, the standard and any special features. Unlike a takst, a valuation requires no formal certification beyond the estate agency licence. The requirement of good estate agency practice in section 6-3 of the Estate Agency Act still applies: the standard means that the agent must act objectively and must not give the client a misleading impression of the likely sale price in order to win an assignment. The supervisory authority is Finanstilsynet (the Financial Supervisory Authority of Norway), which has brought several cases about unrealistic valuations over the years.
E-takst is a stricter variant of the valuation, developed by Eiendom Norge together with the banking industry. It follows a standardised form with documentation requirements (inspection, comparable sales, photographs) and is accepted by Norwegian banks as sufficient grounds for a mortgage and refinancing. An ordinary valuation without the e-takst form is often not regarded as good enough for lending purposes, but it is still useful as a market indication before a sale.
The difference from a takst is practical and about price. A valuation or e-takst typically takes one to two hours including the inspection and costs between 3,000 and 6,000 kroner. A full condition report under NS 3600 is carried out by a certified appraiser, goes thoroughly through the technical condition of the building, and typically costs 10,000 to 25,000 kroner. Since the new avhendingsloven (the Property Sales Act) took effect on 01/01/2022, a condition report has become close to mandatory for housing sales, because it releases the seller from certain "as is" reservations that were previously used as a matter of routine.
Banks accept a valuation or e-takst as the market value in the loan-to-value calculation. The residential mortgage lending regulation sets a maximum loan-to-value ratio of 85% for a primary home and 70% for a secondary home (as of 2024; check Finanstilsynet for the current rate), calculated on the basis of this value. A valuation set too high therefore helps little, because the bank makes its own check and can adjust it down.
In practice, agents produce valuations both for self-marketing (a friendly greeting to possible sellers) and as part of the sales assignment. Professional players in commercial property also use external appraisal firms (DNV, Akershus Eiendom, Cushman, Newsec, Colliers) for quarterly valuations of portfolios for accounting purposes under IFRS 13.
In Placepoint you find comparable transactions, matrikkel and building data, and planning provisions together in the property panel. The Comparable Transactions example shows how you quickly pull out price statistics and sold units in the local area as a basis for a valuation.
How this looks in Placepoint
In Placepoint you find this in the Property panel:
From Placepoint's dictionary: Valuation
More information: Finanstilsynet: Estate agency, Lovdata: Estate Agency Act, section 6-3, Eiendom Norge: E-takst
English: Property appraisal (broker's opinion of value).
Frequently asked questions
What is the difference between a valuation and a takst?
A valuation is carried out by an estate agent, is based on local market knowledge and costs little. A takst is carried out by a certified appraiser to a standard, covers a technical assessment and costs more. Banks accept both, but often prefer an e-takst or a takst.
What does a valuation cost?
An ordinary valuation or e-takst typically costs 3,000 to 6,000 kroner including the inspection. Many agents offer it free of charge as part of marketing for sales assignments.
Is a valuation enough to get a mortgage?
Banks usually require an e-takst or a full takst. A simple valuation without a standardised form is often not sufficient for lending purposes, but it can be enough for refinancing with a small increase in the loan.
How long does a valuation last?
A valuation is usually regarded as current for three to six months. Banks often require a new assessment if the documentation is more than a year old, or if the market changes.
Can I complain about the valuation?
If you believe the valuation is unrealistically low or high, you can ask for the reasoning, obtain an alternative assessment, or complain to Reklamasjonsnemnda for Eiendomsmeglingstjenester (the complaints board for estate agency services). Finanstilsynet handles systematic breaches of good estate agency practice.