Homeowners association reopens hotline for abuses in housing market bidding process
The Dutch Homeowners’ Association (VEH) has reopened its hotline for reporting abuses in the bidding process for owner-occupied homes. According to the VEH, reports received and research by the television program Radar show that realtors’ “attempts at self-regulation are insufficient” to prevent abuses. “Transparency is lacking, the rules are unclear, and consumers remain vulnerable in the bidding process,” the VEH said.
When this hotline was last active five years ago, the VEH received hundreds of reports about things like real estate agents exchanging information about bids and playing buyers off against each other, among other things. The Dutch Association of Realtors (NVM) implemented a mandatory bidding log in 2023, but according to VEH, this has not been sufficiently effective.
Radar surveyed 2,500 people who bid on a home in the past five years. The program found that 43 percent of buyers received guiding information from a realtor, after which 64 percent adjusted their offer, usually by increasing it. For 80 percent, this happened before the closing of the bidding process. According to VEH, it has received similar reports.
“Despite earlier promises from the sector, there is still room for manipulation,” VEH director Cindy Kremer said. “As a result, consumers remain in a weak position in a process with significant consequences.”
The association aims to gather information and evidence about abuses through its hotline.
The VEH also asked the new government to improve consumers’ position when it comes to real estate agents. It advocates for legally binding minimum requirements for the bidding process, the mandatory use of certified bidding software, and setting up an independent supervisor with sanctioning power.
