Asking price, time pressure, and bidding processes in the Dutch housing market
Marnix Hazelhoff
15 August 2025
Reading time 4 minutes
Koster, H. R. A., & Rouwendal, J. (2024). Housing Market Discount Rates: Evidence From Bargaining and Bidding Wars. International Economic Review, 65(2), 955–1002.
Why does the asking price rarely equal the home’s value? Many sellers value speed and certainty more than squeezing out the very last euro. That determines whether they price low on purpose to attract many bidders, or aim patiently for a single strong negotiation. In other words, the asking price is not just a valuation; it’s also a strategy to draw in more interest or to negotiate calmly. This is why Koster and Rouwendal study how sellers set their asking price, when a bidding contest emerges, and the role time pressure plays.
The research
The researchers analyze a large set of Dutch home sales over multiple years and, for each transaction, link the asking price, the final sale price, and time on market. They distinguish two selling environments: classic one-on-one negotiation and competing bids under tight deadlines. Using a structural model, they infer sellers’ implicit discount rate (how much price they are willing to trade for faster certainty).
To compare like with like, they control for property characteristics (type, size, condition), neighborhood/location, and market conditions (scarcity, demand pressure). They test robustness by mirroring results across both selling environments and by zooming in on situations with extra time pressure, such as vacancy or double housing costs. The common thread: a low asking price can be a deliberate tactic to create speed and competition, and is therefore not necessarily a sign of low value.
Key findings
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Speed matters
Many sellers prefer quick certainty over waiting months for the last euro. -
Low pricing is often tactical
A sharp asking price increases viewings and the chances of a bidding contest. -
Bidding contest = different dynamics
Competition pushes the price above the ask and leaves less room to negotiate on conditions. -
Time pressure counts
Sellers who have already moved or face double costs choose “fast and certain” more often. -
Patience can pay off
Without time pressure, asking prices are set higher and there is more room for classic negotiation.
Calculate bid
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What does this mean for you?
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If you see a vacant home, “can deliver quickly,” or an open house with a tight deadline, the odds of a bidding contest are high.
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If you suspect time pressure, bid early and clean with simple, certain conditions.
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In a bidding contest, set your walk-away in advance; the low asking price is rarely the true value there.
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In a calmer market, substantiate your offer (condition, energy label, comparables) and let conditions carry weight.
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Always make price and conditions work together so you improve your odds without overbidding unnecessarily.
Conclusion
The asking price tells you which game you’re playing. Spot time pressure and win with certainty and speed. Smell a bidding contest, guard your limit and bid deliberately. If it’s calm, lean on value arguments and smart conditions.
