It is again bumblebees within real estate association NVM. In recent years, the NVM has been the scene of a tribal struggle in which two brokerage movements face each other: the internet brokers with their fixed rates and the ‘traditional’ brokers who work with brokerage.
Some internet brokers opt for a different revenue model than that of the ‘traditional’ broker. They keep costs low by letting the home sellers do more themselves, such as taking sales photos and organizing viewings. The assistance is at a fixed rate, which means that sellers are usually cheaper. The traditional brokers, on the other hand, praise themselves for their ‘full service’ throughout the entire sales process. They charge a commission for this, a varying percentage of the sales price. The latter group sees the service provided by internet brokers as insufficient and as undermining the professional agreements, as laid down in the NVM code of honour.
It has been grinding between these two brokerage movements and their revenue models for a number of years. In 2017, Makelaarsland was already reprimanded by the internal disciplinary board of the NVM. Only last year, regional estate agents wrote an internal fire letter, in which they wanted to ban internet brokers such as Makelaarsland from Funda and to remove them from their membership.
1Why another disciplinary case?
At Makelaarsland, the marketing department has not been idle since the ruling in 2017. In new commercials, the traditional broker is once again portrayed as more expensive. In a number of radio and YouTube commercials, it is also characterized by a flapping tie on a Vespa scooter. In addition, Makelaarsland offers the option to use a ‘savings calculator’ on its site to calculate how much more expensive an NVM broker is than a broker with a fixed rate.
The statements are against the sore leg of a group of brokers within the NVM, who unite in the foundation ‘De Bezorgde NVM-makelaars’. They find the commercials unprofessional and accuse Makelaarsland of misleading the customer with the savings tool. The calculator works with average rates, and not every house worth 2 million euros sells at 1.38 percent brokerage.
The scooter commercial, the foundation claimed, is also bad for the profession because it puts the broker on the same page as Willem Holleeder. The top criminal, who liked to stroll through Amsterdam on such a scooter, is currently incarcerated as the main suspect in a number of liquidations.
2How did the disciplinary committee decide?
The disciplinary ruling dates from February, but was only published this week in an internal NVM newsletter. The De Bezorgde NVM broker foundation was proved right on four of the six complaints, according to the ruling, which is in the hands of NRC† The complainants find the disciplinary board on their side when it comes to the ‘scooter’ commercials. The commercials show “a negative image of metropolitan real estate”, which the association wants to prevent – according to the disciplinary board.
Makelaarsland director Gijs van Wijgerden does not want to comment on the ruling, except to emphasize that the disciplinary board does not focus on the quality of service. “The NVM is a large group where all kinds of interests play a role. One has a model where only online service is offered, the other does ‘full service’. We offer both and simply comply with the NVM regulations.” He is short about the scooter: “We made a caricature in a light-hearted way. You have people who say: I don’t think that’s appropriate. You are free to do that, of course, we thought it was possible.” The result for Makelaarsland is a 10,000 euro fine and a suspension of six months, which will be held until the appeal.
3What does a suspension mean?
A suspension at the NVM does not automatically lead to a ban on the housing website Funda – the holy grail for real estate agents and house sellers. Funda was once set up by the NVM, but now operates as an independent platform. Non-NVM members are also allowed to advertise homes on Funda, which itself decides who can and cannot participate. At the most, it would mean that Makelaarsland is not allowed to present itself as an NVM broker on Funda, so that it no longer has the quality seal.
The appeal takes place in a national disciplinary committee, which first includes a period of hearing both sides of the argument. Van Wijgerden shows that he does not lose any sleep over it. “Ultimately, it’s the consumer who decides. It is not for nothing that we have grown to become number two in the Netherlands.”