In February last year, the 200-year-old insurance company has become the real estate market. The goal was to challenge the real estate industry with new innovative and digital solutions.
"It is strange that this market is not modernized," CEO Helge Leyro Baadstad at Gjensdige Forsikring said at the time.
About a year after his launch, Øystein Thoresen, Director of Communications at Gjensidige, can confirm that this business has been suspended.
"So far, we have completed the entire business in the company," he says.
The digital solution fights
The company is struggling to achieve satisfactory sales volumes.
– The market for home sales through simple digital solutions is still very small in Norway. Homeowners are willing to pay the extra costs associated with the use of traditional real estate services, Thoresen writes.
Gjensidige Eiendomsmegling as (formerly Gjensidige Bolighandel as) ceased to sign new tasks. Existing orders will be terminated either from dwellings that have already been sold or from the award agreement that is concluded after consultation with the client.
Gjensidige Eiendomsmegling will not be closed, but in the future Gjensidige will appreciate the form in which the company can continue.
Early on foot
The service has changed significantly since it was released in February last year. According to Gjensidige, they are a little early on the market with the new solution, which is more or less self-service and should therefore be between 40 to 60 percent cheaper than traditional real estate services.
– Of all homes for sale in Finn, 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 it did initially, should only help with bidding and settlement, and then customers can pay for any additional services. In this way they wanted to offer real estate services far cheaper than today.
The warranty for the condition continues
One of the main elements of the new real estate service is the State Guarantee Insurance. Here, customers were able to eliminate hidden shortcomings and defects for five years after the sale, against deduction.
This is the homeowner who buys insurance by selling homes, but home buyers are also covered by the five-year guarantee.
In connection with the fact that Storting earlier this year chose to change the sales law governing the housing stock in Norway, Gjensidige has received several queries that want to offer Gjensidige's product to foreign real estate agents.
"Gjensidige Bolighandel will be our starting point for distributing the state guarantee for foreign brokers," he says.(General terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like to share our cases through a link that leads directly to our pages. Copying or other forms of use of all or part of the content may only be done after written permission or as permitted by law. For more information, see here.