Last February, more than 200 years old insurance company returned to the real estate market. The aim was to challenge the real estate industry with new innovative and digital solutions.
– It is strange that this market is no longer up to date, said the general manager of Helge Leiro Baastad at Gjensdige Forsikring.
A little over a year after the start of operations, Øystein Thoresen, director of communications in Gjensidige, can confirm that this business activity was interrupted.
– So far we have completed all the business in the company, he says.
The digital solution is struggling
The company was trying to achieve satisfactory sales volumes.
– The market for home sales through simple digital solutions is still very small in Norway. Owners of apartments are willing to pay additional costs associated with the use of traditional real estate services, writes Thoresen.
Gjensidige Eiendomsmegling as (formerly Gjensidige Bolighandel as) now ceases to sign new tasks. Existing allocations are terminated either by previously sold apartments or by concluding a resignation agreement in agreement with the client.
Gjensidige Eiendomsmegling will not be closed, but in the future Gjensidige will evaluate the form in which the company can continue.
Get out early
Since the beginning of February, the service has been quite adapted. According to Gjensidige, the new solution, which was more or less self-service, was slightly early on the market, so it should be 40 to 60 percent cheaper than traditional real estate services.
– Of all homes for sale in Finland, less than one percent of homes are still sold through companies that offer more or less self-employed real estate, says Øystein Thoresen.
Gjensidige Bolighandel, as he did initially, should only help with a round of offers and settlement, and then customers could pay for any additional services. In this way, they wanted to offer real estate services much cheaper than today.
The guarantee of conditions continues
One of the main elements of the new real estate service was the "state guarantee" insurance. Here, customers managed to remove hidden mistakes and mistakes five years after the sale, against deduction.
This is the owner of apartments buying insurance through domestic sales, but domestic customers are also insured with a five-year warranty.
Regarding the fact that Storting decided at the beginning of this year to change the Divestiture Act governing the housing stock in Norway, according to Thoresen, Gjensidige received several inquiries that wanted Gjensidige to offer to external real estate agents.
– Gjensidige Bolighandel will be our starting point for distributing state guarantees to external brokers, he says.(Conditions)Copyright Dagens Næringsliv AS and / or our suppliers. We want to share our examples using a link that leads directly to our pages. Copying or other forms of using all or part of the content can only be made after a written permission or in accordance with the law. For additional conditions, see here.