Bidding Systems in the Housing Market

When you want to buy a house, you may encounter different bidding systems, each with its own rules and strategies. Below is an overview of the most common types of bidding to help you make the best choice during your house hunt:

Negotiating

The traditional system

Negotiation is the most traditional system. As a buyer, you make an initial offer. This can be done verbally or in writing, but it's wise to confirm verbal offers in writing. Once the seller makes a counteroffer, you are officially in negotiations. Both parties can go back and forth with bids until an agreement is reached. You can also choose to make a final offer right away, for which you expect a response by a specific date and time.

Important to know: During negotiations, the seller can continue with viewings and receive offers from other interested parties but is not allowed to negotiate with multiple parties at the same time.

Sale by registration

Make a one-time offer

In a sale by registration, all interested parties may submit a one-time final offer by a specified date and time. There is no negotiation with the bidders. The seller selects the best offer based on price and conditions. This bidding method is often used for properties with a lot of interest because the process is quick and efficient.

Note: Even after the registration period has closed, the seller can accept a higher offer, as long as no purchase agreement has been signed yet.

Online Bidding

Transparent and real-time

Online bidding is a transparent system where, as a bidder, you can see in real-time what other interested parties are offering. Through platforms like Move Biedingen (starting in 2024), you can place a bid and adjust your offer or conditions during the bidding period. If a bid is made in the last three minutes, the closing time is automatically extended, similar to an auction. This system is popular due to its transparency and the fact that everyone has an equal chance to become the highest bidder.

Auction

Public and unconditional sale

An auction is always public, and the conditions, with the exception of the price, are predetermined. The most common form is a foreclosure auction, which is held when an owner cannot pay their mortgage, and the property is forcibly sold to repay debts. A voluntary auction is rare, as the conditions for the buyer are less flexible.

The Amsterdams system

In the Amsterdam bidding system, a buyer makes an offer, once the seller makes a counteroffer, the two are in negotiation, designating the buyer as the "first bidder." While negotiations continue, viewings can still take place, and other interested parties are allowed to submit a one-time final bid. Once these additional bids are received, the first bidder is given the opportunity to match or exceed the highest bid. If the first bidder does not do so, the seller may proceed to sell the property to the new bidder.

The Haarlem system

In the Haarlem bidding system, the first bidder is considered the most important party. After making a serious offer, the real estate agent negotiates first with this bidder, while viewings continue. If a new bidder appears, they may submit a one-time final offer. The seller then makes a "final sales proposal" to the first bidder, who decides whether to accept it. If the first bidder rejects the offer, the property is sold to the other bidder.

Differences between the Amsterdams and
Haarlems systeem

In the Amsterdam bidding system, the first bidder (the buyer) has the opportunity in the final round to submit their ultimate purchase proposal to the seller. This means that the buyer places their highest bid, after which the seller decides to whom they will sell the property.

In the Haarlem bidding system, the process is slightly different. Here, in the final phase, it is the seller who makes an ultimate sales proposal to the first bidder. The first bidder then has the choice to either accept or reject this offer. If the first bidder rejects the proposal, the seller is free to sell the property to another bidder.