Primary Outcomes (explanation)
Regarding the cost variable:
a. The cost for the market value appraisal amounts to approximately tSEK 10 for a residential property and is charged in every case. Market value appraisers are publicly procured by SEA and the cost is predetermined by the contract.
b. The procedural costs are regulated in law and consists of a preparatory fee and a sales fee. The preparatory fee amounts to 1 per cent of the property’s tax value and is charged in every case at the point in time when either (i) the auction is publicly announced or (ii) SEA commissions brokered sale of the property. The sales fee amounts to 2 per cent of the tax value and is charged in a case that results in actual sale of the property in an auction. The minimum procedural costs amount to 20 % of price base amount (swe. prisbasbelopp), tSEK 9.3 per year 2019, and the maximum procedural costs amount to 150 % of the price base amount, about tSEK 70 per year 2019. The consequence of this regulation is that the preparatory fee in cases with brokered sale amounts to tSEK 9.3 for all properties with a tax value lower than tSEK 930.
c. Brokerage fees are charged in every case that results in brokered sale of the property. These fees are determined according to a publicly procured contract and is a function of the sale price of the property. The current holder of the contract is Svensk Fastighetsförmedling, which is a brokerage firm with national coverage. The fee is set as a percentage of the sale price. The rate is the highest for properties with low values. As of year 2019 it starts out at 14 per cent of the sale price in the range of tSEK201-400 and is sequentially lowered to a 1.4 per cent if the sale price exceeds tSEK 5,000. If the sale price is tSEK 200 or lower, or tSEK 8,000 or higher, then the fee is individually negotiated for that specific property. There is a new public procurement planned for year 2020, which means that the brokerage fees may change during the duration of the study.
d. In summary, the costs are anticipated to vary between approximately tSEK 20 to tSEK 80 for properties sold on auction. For properties sold by a broker, the minimum costs are approximately tSEK 50. For brokered sale, there is no upper limit to the costs, as they depend on the sales price. As an example, the costs for a property with a tax value of tSEK 500 and sold by a broker for tSEK 700 amount to approximately tSEK 63. By comparison, the costs for a brokered sale of a property with a tax value of tSEK 2,000 and a sale price of tSEK 2,500 amount to approximately tSEK 84.