New real estate market emerging!

KØBERSMÆGLER.DK E-mail: koebermaegler@koebersmaegler.dk Website: http://koebersmaegler.dk

REAL ESTATE 2015

Real estate market: Denmark

NEW REAL ESTATE MARKET GROWING IN DENMARK January 1, 2015 a new market within real estate in Denmark is emerging. The law in Denmark concerning buying and selling of private real estate property has been renewed as a result of a situation, where it was not clear from who the real estate buyers should take legal advise and counselling. The new law is enforced from January 1, and it complies to all private real estate sales. In the new law it is stated that the real estate agent representing the property and the seller cannot give any advice to any buyers and the buyers must be informed about that they should seek help from a property buyer agent.

In other parts of the world, it is natural to have a representative both for the seller and for the buyer, but in Denmark this is not the culture and it has not been normal procedure. Until recently buyers did not have a professional representative, but only information about their loaning capabilities from their bank and a lawyer to go through the papers after the deal is done. This “offbalance” is now challenged by this new law, and in Denmark the real estate market sees specialized buyer agents opening up the doors to help and advice private property buyers. One of the new “only for buyers” real estate agent companies is KOEBERSMAEGLER.DK (can be directly translated to “buyers-real-estate-agent.dk”).

This company challenges the established real estate market and promises buyers to get a lower price if the buyers’ choose to engage with KOEBERSMAEGLER.DK. In Danish a buyer agent is called a “købersmægler”. It is actually recently registered by Wikipedia in Denmark. Other specialized brands are expected to open up but the market has not seen anyone else yet.

What a lot of people expect on this market is that many of the established real estate agent chains will open up branches which deal only with buyers. But then we could see a situation, where a part selling a private real estate is met with an agent from the same brand representing the other side (the buyer). This could end in problems - naturally.

Maybe the Danish market should learn something from the US market or the markets in Southern Europe. Here it has been normal private property culture for decades, where both parties are represented and they work together on getting the deals done – everyone is happy. The situation in Denmark is that quite a lot of people and experts within this industry expects the market to be a bloodbath with a direct fight between the sellers’ agents and the buyers’ agents. The market need to mature and the parties need to get used to each other and to see that the other part is there because they want the properties to shift hands and not to declare war against the other part.

It is for sure going to be exciting to follow the development of this market. In Denmark the seller is used to pay up to 95 % of the cost of the real estate deal and now we will hopefully see a situation where it will be more balanced and buyer and seller will share the total cost of the deal going through.

Link to KOEBERSMAEGLER.DK GOOGLE+ Link to Danish Real Estate Cooperation

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