News:

Bidding system for brokers: 7 questions and answers

bidding system brokers

Since Minister Ollongren's parliamentary letter about the working methods of estate agents, many different variants of Online Bidding can be found. The differences in rules per bidding system can sometimes be confusing for house hunters. In this blog article we therefore deal with the most common questions about the bidding system of Eerlijk Bieden!

1. Does Eerlijk Bieden work like an open auction?

No, we deliberately do not show the other offers to candidates in the interim. We believe that in a closed system - where the bid remains secret to everyone - candidates have the opportunity to submit a well-considered offer in peace, without external stimuli. The bidding system of Eerlijk Bieden can best be compared to a digital version of the 'envelope system' used by notaries and brokers in the past.

In addition, you can recently use Regular Bidding. With this sales method, there is no longer a deadline and candidates can make an offer at any time. The seller and broker can then start negotiations as needed.

The bidding system of Eerlijk Bieden explained (NOS news, 2021)

2. Is the highest bid also the buyer?

No, contrary to the Norwegian system, which has been increasingly suggested recently, the seller retains the right of award. We ask all candidates in the bidding system to describe their offer as specifically as possible. Based on these characteristics, a seller, together with the estate agent, can select the ideal offer. It therefore often happens that sellers prefer a lower bid, because this is more in line with the time of moving, for example.

3. Do candidates get to see all offers immediately after the closing time?

No, the offers can only be found in the bid log, the timing of their release is still up to the seller and broker. To protect the seller, it is usually only shared after the three-day cooling-off period.

4. Can Eerlijk Bieden be applied to any property?

Simply put: yes. Since the start of Eerlijk Bieden , many different houses have been sold throughout the Netherlands, with asking prices ranging from €100,000 to €1,100,000 and from studios to detached villas. In theory, Eerlijk Bieden is therefore applicable to all types of homes. In practice, we mainly see brokers starting in our bidding system with the homes that are in high demand, for example starter homes. The fair bidding system is also important when fewer offers are expected.

5. Does this bidding system affect the sales result?

From the first results there seems to be no difference between the bidding system of Eerlijk Bieden and a 'regular sale' by a broker. Eerlijk Bieden mainly sees to it that the rules of the game are respected during the process, so there is no question of price differences.

The different bidding systems in the housing market

6. Is online bidding difficult?

With Eerlijk Bieden we want to establish a uniform way of bidding that is accessible to everyone. Currently we have processed around 2,000 bids where the bid form has been used by bidders of different age groups, languages and devices. Whenever a consumer is unsure, they can always contact us via the chat function. The most frequently asked questions can be found directly on our helpdesk. This way everyone can make an online bid.

7. What is the broker's role in online bidding?

Simply sending an overview of all the offers to a seller could be done, but we find that sellers still want advice in the selection of a buyer. Estate agents can help at this stage by checking whether a candidate has made a realistic offer and is therefore feasible. As with many things in life, sometimes offers are too good to be true. A good estate agent can help you in this choice.

About Eerlijk Bieden

Eerlijk bieden is the first independent quality mark for estate brokers in the Netherlands. Using special bidding software, we can guarantee a 100% fair sales process. Eerlijk Bieden regularly launches new initiatives in the Dutch housing market, such as recently the bid log. Our mission is to create a level playing field for all involved in the process of selling a property.

Share on linkedin
LinkedIn
Share on facebook
Facebook
Share on twitter
Twitter