Real estate brokers challenge country’s top housing platform over rising listing costs
The Dutch real estate agents association NVM says its members are increasingly opposing changes at Funda, the popular housing platform that is majority-owned by NVM. In a letter obtained by FD, 19 of the association’s 27 regional divisions criticize Funda’s new business model, which allegedly includes price increases of up to more than 100 percent for placing property listings.
The criticism centers on a new pricing model that will take effect in September. Under the changes, the most expensive advertising package for NVM brokers and home sellers will cost more than twice as much as it does now. The brokers call the increases "disproportionate" and say they are not adequately justified.
“Why do you want to invoice consumers directly? We are not getting a clear answer from Funda to that question,” Floris van der Peijl, chairman of the Amsterdam Real Estate Agents Association MVA and the author of the letter, told FD. “It is the broker’s role to guide and advise the home seller. That also includes the marketing of the property. Funda should not take over that role.”
NVM is Funda’s majority shareholder but has said it is up to Funda to respond to the criticism. The platform’s other shareholder is U.S. investment firm General Atlantic, which has held a stake in Funda for two years.
Dissatisfaction among NVM members has reportedly existed for longer. Some brokers argue that Funda’s strategy is increasingly focused on profit figures rather than their interests. They say this could reduce the role of brokers in the property sales process.
The signatories also say Funda's new revenue model "erodes the role of the real estate agent in the sales process." According to FD, that refers to a new option allowing home sellers to pay Funda directly for a property listing.
