Eiendomsverdi was founded in 2000 and the company develops and supplies information tools and systems to estimate market value (both on an individual unit level and on a portfolio level) for the Norwegian residential real estate market.
Eiendomsverdi AS
Eiendomsverdi was founded in 2000 and is owned by the by the four largest banking constellations in Norway, DNB, SpareBank 1, Eika and Nordea with an equal share of ownership.
The company develops and supplies information tools and systems to estimate market value (both on an individual unit level and on a portfolio level) for the Norwegian residential real estate market, and delivers solutions to support valuation and information on the commercial property market.
Eiendomsverdi's services are offered to real estate agents, commercial property brokers, surveyors, banks, financial institutions, and real estate developers.
Eiendomsverdi AVM
Eiendomsverdi’s AVM model introduced automated property valuations to the Norwegian market.
Assessing the value of a property is a relatively extensive process. In many cases an appraisal is not feasible or too costly and time consuming leaving an AVM estimate the only viable alternative. As a result of the high level of accuracy and ease-of-use coupled with the inherent cost effectiveness the use of Eiendomsverdi’s AVM models has increased dramatically over the past few years. Today it is used by almost all of the Norwegian banks both at origination of the mortgage and to track the value of the collateral over the duration of the mortgage.
Eiendomsverdi has since its inception in early 2000 built a unique database covering the Norwegian property market. By combining publicly available property data with information gathered directly from the real estate agents the Norwegian housing cooperatives and the real estate developers the database has become a powerful and critical tool as the basis for our market value estimates. It consists of information on every Norwegian property and the sales price from every transaction since 1990.
In addition due to the unique collaboration between the Norwegian real estate agents and Eiendomsverdi with well over 90 percent of agents participating Eiendomsverdi’s database has been updated in real time with data from house sales performed by agents since 2003. When a residential property is sold on the open market the transaction price and corresponding transaction data will be updated in the database the day after. This information is then crossreferenced with existing information on that property.
This is possible due to the high quality of the public land registry and speedy nature of Norwegian house sales. An offer is binding on the buyer from the time it has been presented to the seller and therefore the final selling price is available immediately after the offer has been accepted by the seller. This data is then immediately incorporated into our model.
Although an AVM will not be able to inspect the target property Eiendomsverdi’s AVM has proved to be highly accurate and the level of accuracy has been competitive to alternative valuation methods incorporating such an inspection. To ensure that the model is accurate under any and all market conditions Eiendomsverdi validates its models every fortnight. This is done by comparing the sum of actual sales prices for all properties sold in that month with a valuation of the same properties performed on the corresponding sales date (without incorporating data from the transaction). This has proved that the model is highly resilient to market turmoil. Even during the financial crisis when Norwegian house prices fell at something which was probably record rates our models kept track with the market. Even in the worst month our model returned estimates which on an aggregate represented an overvaluation of only three percent.