Since January 1, 2023, brokers of the industry associations NVM, Vastgoedpro and VBO are obliged to work with a bid log. What exactly the bid log is and what it means for the broker, seller and house seekers, you can read in this blog post.
Why a bid log?
Vereniging Eigen Huis launched a hotline for consumers in March 2021 to collect complaints about sales processes within real estate agencies. Since then, this hotline has received thousands of complaints ranging from favoritism to unwanted price pushing. Shortly thereafter, Eerlijk Bieden introduced the Bid Log for brokers to work transparently.
What is the bid log?
The bid log is an automatically generated bid summary that allows candidates to see the final transaction price and other bids for a property. This allows the broker to ensure a transparent and verifiable sales process.
How does the bid log work?
A Bid Log is maintained by bidding software. Instead of sending an email with a bid, you must now submit a bid digitally via a bid form. When a bid comes in, it is automatically recorded in the system and cannot be modified by third parties.
What will change for salespeople?
For sellers, basically little changes. All bids that are submitted will be automatically displayed to the seller. In this way, the broker guarantees not to withhold any bids. Based on the transparent bid overview, the seller can work with the broker to identify a suitable buyer.
What is in a bid log?
In the bid book, there are always some standard points such as:
- Sales start date and sales method
- The number of bids submitted
- Details about bids such as the amount and caveats
- Interim negotiations
- The agreed bid
When will the bid log be shared?
The bid log must be shared by the broker when the sale of the home is "irrevocable. This may be after the three-day statutory cooling-off period, or after the expiration of reservations if they are included in the winning bid.
Where can I find the bid log?
See the bids? After the sale becomes irrevocable, the bid book is released. You receive an automatic e-mail from the bidding software to view the overview. For security reasons, in most cases you must first log in to view the information.
Who is allowed to see the bid log?
The bid book is currently only available for viewing by the seller and the candidates who have made an offer on the property (or their buying agent).
How is privacy handled?
For the sake of privacy, all personal data and reducible details have been anonymized (e.g. names and details of reservations). Any other details such as a motivation message or files are not shown.
Is a bid log required?
In short: yes, but it is not yet a legal obligation. For brokers affiliated with the trade associations NVM, Vastgoedpro and VBO, there is an obligation from the honorary, or professional and code of conduct, as of Jan. 1, 2023. Failure to comply with this self-imposed obligation may ultimately result in sanctions from independent disciplinary law.
Are negotiations shown in the Bid Log?
Currently, there is still a lot of confusion between the bid book and the different sales method. In principle, a bid book can be issued in any sales process, including regular bidding. This makes it possible to also log negotiations digitally for a fully conclusive bid log.
Can the sales method be changed in the interim?
In some cases, it is possible that the sales method may change in the interim. Therefore, the process may be changed in the interim, or after. It is important that all involved are automatically informed of this, in order to avoid any possible abuses.
Are there differences between providers?
Currently, there are a few providers that issue bid logs such as originator Eerlijk Bieden and software party Realworks (publisher of Move). There are differences between these providers that may affect consumers. The main difference is mainly in the way data is collected and managed.
The Ministry of the Interior and Kingdom Relations therefore wishes to move to certification of bid logs in order to nullify differences between them. With a certified bid log, the data is collected in a standardized way and can be more easily tested against the central disciplinary law.
What is the difference between the Land Registry and the bid log?
In the Land Registry, only data on the purchase price can be found; information on any reservations is missing. In the Netherlands, road reservations often play a role in the awarding of a property. To get a complete picture of the sales process, transparency is needed. In addition, the bidding log is free and quicker to access unlike the paid retrievals at the Land Registry.
First experiences of the bid log in practice
In September 2021, broker association VBO held a pilot among its members in cooperation with Eerlijk Bieden . Around 90 VBO members participated in the pilot, these members were asked to sell part of their homes through the platform. In one month, 60 homes spread across the Netherlands were registered through the Eerlijk Bieden system. Consumers rated this method with an 8.8.
Comments on the bid log from the industry
Branch organization VBO supports the use of an automatic bidding log: "VBO has been arguing for a long time for what we call the general accountability for brokers," said Tristan Bons of VBO. Hans van der Ploeg, director of VBO also sees other advantages: 'in the event of a dispute, the log can be checked by the disciplinary committee. It can then objectively assess whether an estate agent has complied with the obligations."
The NVM is initially in favor of the introduction, but warns of the risk of unnecessary overbidding by releasing bidding information on homes. The bid log could be seen as a form of "sham transparency.
Professor of the housing market Peter Boelhouwer does not share this fear of the NVM for the time being . "Only in a completely open bidding process is there a risk that candidates will overbid unnecessarily, or actually ensure that prices are depressed. A bid log is not a public auction, but primarily shares insight into the sales process. Therefore, it will especially protect young vulnerable buyers."
Timeline Bid Log
A few months after the first pilot of Eerlijk Bieden , Minister de Jonge for Housing and Spatial Planning together with the industry associations NVM, Vastgoedpro, VBO and Vereniging Eigen Huis signed the improvement plan "trust in the buying process . The improvement plan specifically mentions the certified bid log in order to give prospective buyers and sellers insight into the sales process.
The Ministry of the Interior and Kingdom Relations has previously indicated that it is exploring the possibility of a legal obligation. This would prevent intermediaries without a certified bidding process from guiding a sales process.
Update June 28, 2022
Realtor associations NVM, Vastgoedpro and VBO have taken the lead in anticipation of possible legislation by making the bid log mandatory to its members from Jan . 1, 2023. Starting July 1, all members will have the opportunity to test the system.
Update July 12, 2022
A week after the announcement by the brokerage associations, Minister De Jonge has shared in a parliamentary letter that he wants to speed up the certification of a standardized bid log. Because many differences arise between the variants of bid logs, legislation is desperately needed, Minister De Jonge said. More details on the certification process will follow this fall.
Update Jan. 1, 2023
As of January 1, that's when the bid log will become mandatory for all association brokers. Homes registered as of this date must then have a certified bid log. Should it be missing or contain errors, consumers can contact the newly established brokerage complaints desk.
Update Aug. 1, 2023
Six months after the mandatory introduction of the Bid Log, many differences remain between providers. After several items in the media, outgoing minister Hugo de Jonge has decided to establish a NEN committee to standardize the Bid Log. This process is expected to be completed summer 2024.
About Eerlijk Bieden
Eerlijk Bieden is the first fully independent hallmark in the Netherlands that monitors honest home transactions. Affiliated brokers use Eerlijk Bieden 's certified sales system, making the process transparent at all times for all parties involved, without compromising the sales result. To prevent any abuses, Eerlijk Bieden conducts audits of its members. Currently, more than 20,000 homes have been sold through Eerlijk Bieden where the bid log has been deployed.
Want to try out the bid log yourself as a broker?
Eerlijk Bieden 's bidding software is specially set up to generate an independent and certified bid book for brokers. In this way, brokers can comply with all future laws and regulations in no time. Realtors affiliated with the Eerlijk Bieden quality mark can use the free Bid Log. In this way, we promote a fair housing market for everyone.
