Realtors playing buyers off against each other, despite measures: Homeowners Assoc.

The bidding log book for housing transactions introduced in 2023 to make the bidding process fairer and more transparent is not effective enough, according to the homeowners' association VEH. Realtors can still too easily play buyers off against each other, the association said in a press release on Tuesday.

VEH surveyed over 400 people who made an offer on a home last year and found that only 32 percent were given access to the bidding log afterward. 41 percent of that group had to ask to see the log themselves.

According to the VEH, the bidding log is too non-committal. The bidding log must reflect all offers made on a home and must be made available to bidders after the process closes. The log should show exactly how much competition there was for a home and what other interested parties bid. Its use is mandatory for all realtors affiliated with a trade association, but in practice, only some use it.

“The bidding log only works if it functions the same way for everyone and is shared automatically,” VEH director Cindy Kremer said. “As long as it is not applied uniformly, completely, and consistently, consumers benefit too little from it. Without a single clear standard and enforcement, transparency remains dependent on the working methods of the individual real estate agent.”

In February, VEH reopened its hotline for abuses in the home bidding process. It once again received reports from bidders saying they were pressured based on competing bids that later turned out to be incorrect. There were also reports of winning bids made only after the deadline.

“You see the same outcomes as a few years ago,” VEH spokesperson Nico Stolwijk told AD. “You see cronyism, especially around the closing time of the bidding; you sometimes see agents favoring acquaintances or driving up prices through dishonest information about bids. You also see prospective buyers getting a head start if they have a house listed for sale, or that people without a real estate agent stand less of a chance. You see all of that again.”

VEH wants the government to intervene. “We call on the Cabinet and parliament to legally enshrine the bidding process, with one uniform standard for all real estate agents and enforcement,” VEH director Kremer said in the press release. “This means: independent supervision of realtors, so that rules are not optional and abuses are actually tackled.”