Home economics

Do you know what you really pay for?

This is a document fee.

Do you know what you really pay for?

Buying or selling housing for the first time may seem like an insurmountable task.

As a buyer one must know what to look for on display and prepare for the terrifying bid round.

As a salesman, you should be aware that there are women who decide on home sales and that new paint can increase the value by hundreds of thousands of dollars.

But one thing is more important than anything else when it comes to real estate: economy.

Although sales tasks will be full, there are a lot of expenses that come with buying and selling housing. They are not necessarily self explanatory.

We therefore asked Svein Strømnes of the Norwegian Real Estate Broker (NEF) and Managing Director of Active Real Estate, Finn Magnus Rogne-Hansen, to elaborate on what the various items in the “transfer statement” mean.

We have taken a new 2 bedroom self-catering apartment in Oslo.

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Do you know what you really pay for?

OVERVIEW: In a housing ad, you’ll find “the other” expenses under Cost. In this case, they make up almost 85,000 kroner, given that the property is sold at the total price. Photo: Active Property

Not everyone pays document fee

The document fee has annoyed many home buyers. As you can see, it amounts to 72 520 kroner in this case.

– Document fee is a fee required for most of the property transactions in Norway. The fee is required when the joke is sent to the public prosecutor at the Norwegian Mapping Authority, explains Rogne-Hansen.

A joint is the document that is completed when transferring a property. A registration is a public registration of the agreement entered into.

It is the Norwegian Mapping Authority that performs this registration.

The document fee amounts to 2.5 percent of the sales value and it is the buyer who pays it.

– Shareholdings and shareholdings have been avoided, says Strømnes in NEF.

Deduction fee = a few dogpins

The registration fee is paid to the state and is determined by the law.

This is paid by registration of documents such as joints, mortgage bonds and the like.

– The fee will cover the state’s actual expenses at the property litigation and it is the buyer who pays the fee, says Rogne-Hansen in Active Property.

– The general registration fee for property listing is 525 kroner, and for property listing in housing units, the registration fee is 430 kroner, says Svein Strømnes in NEF.

As you can see in the picture, this is real estate, and therefore the fee is 525 kroner.

Who pays owner change fees?

It depends on the apartment.

In this case, it is a self-catering apartment and as you see in the advertisement, it is the buyer who pays.

– This fee is usually paid by the buyer and goes to cover costs that the business manager has in connection with the transfer, “explains Rogne-Hansen..

But in a housing company it is the seller who pays. The fee will cover the expenses a change of ownership entails for the housing company itself.

The amount must be four times the court fee (or five times – if pre-emptive rights must be cleared). This will be no more than NOK 3440, says Svein Strømnes.

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Do you know what you really pay for?

VARIERS: The real estate commissioner’s commission is determined by the sales price, but in 2013 the average was 52 982 NOK. Some also charge hourly or fixed price. PHOTO: Jarl Fr. Erichsen / SCANPIX Photo: Erichsen, Jarl Fr.

How much does the broker cost?

Seller pays the real estate agent to do the job of selling the apartment, either in terms of hourly payment, fixed price or as a percentage of sales.

– The average commission for a broker was 52,982 kroner in 2013, says Rogne-Hansen.

This will vary greatly, because the commission is determined by the sales price. Common to all is that prices must be stated on the company’s website.

– Percentage usually varies between 1-3.5 percent, says Strømnes in NEF.

How to advertise sales

The average amount above also includes the item “facilitation”. But be aware that this may appear as well. Organization includes costs for viewing, photography, printing of prospectuses and so on.

Of course, it is paid by the seller.

Most people will also need a market package.

– The property will be marketed so that you attract the right buyer and that you get the best price. This may mean that ads in newspaper, social media, website and marketplace on the web will be right, “says Svein Strømnes..

This is, in other words, tailored marketing.

– The cost differs from the cost of advertising in the different regions, but is often in the range of 10-30,000 kroner, “says Rogne-Hansen..

This also applies to the views that the seller pays for. The number of views is agreed in each case.

Basic box printing must be in box

The real estate agent is required to collect information before sale.

– Print from the basic book mainly includes the residential property’s basic data, billed bills and rights, says Strømnes.

In this ad, this is called a mortgage certificate, and it is the buyer who pays.

Count a few thousand to the settlement

The seller must also calculate money for the settlement cost, which covers the transaction.

According to Strømnes, almost all companies have this as a separate part because it is possible to buy this service only (if you do not use a broker).

– The amount of a settlement may vary by region and what is included, but is normally in the range of 3500 kroner to 5,000 kroner, “says Rogne-Hansen in Active Property..

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Do you know what you really pay for?

INSURANCE: Both the seller and the buyer should understand what the change of ownership covers. There are cases from the Supreme Court where the buyer has ended up having to pay both the legal costs and the repair of moisture damage in the bathroom. The picture is an illustration photo. Photo: Colorbox

The disputed ownership change insurance

– Ownership insurance is, at payment, to leave responsibility for any hidden errors on the home you are selling to an insurance company. It is an insurance that the seller of the property draws, says Strømnes in NEF.

The insurance is intended to cover a real risk with the seller. One should be aware of that as a buyer.

– It is important to be aware that the owner-shift insurance will never cover more than the seller’s liability under the Disposal Act. Furthermore, the insurance does not cover all conditions that the seller can be held responsible for, “says Strømnes.

The price will also vary depending on the item.

In this case, the seller has purchased a change of ownership, and it is stated under the title “Area and construction year”.

How to buy protected

Similar insurance for the other party is called home buyer insurance.

– This covers the buyer’s costs for legal assistance in any case against the seller. Price varies from object, says Rogne-Hansen in Active Property.

You receive, up to a certain amount, the assistance of specialized attorneys if you want to complain about errors and omissions.

– But home buyer insurance can only be subscribed by private individuals who buy housing for their own purposes and when the sale is done through a real estate agent, says Strømnes in NEF.

Buying before selling

Medium-term financing is the term of temporary loans you can get in the period from buying a new one until you can sell your old home.

– The loan allows you to buy before selling, possibly taking over new housing earlier than giving away old housing, “says Rogne-Hansen..

This is often offered by the bank to make the economy go up.

– The interest rate on this new loan is usually somewhat higher than a standard mortgage, but one can often agree on the deduction for the loan until it is due, says Strømnes..

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