The buzz word in auctioneering circles at the moment is auction fatigue, with a high percentage of properties failing to sell in the auction rooms in recent weeks. It seems that many buyers are now staying away from auctions, preferring to pitch for properties later once they have been withdrawn. In some cases, a buyer will attend an auction but only enter negotiations later when the atmosphere has cooled sufficiently to allow a deal to be done. Auctioneers have only themselves to blame since house hunters realise that guide prices are only designed to entice them to the auction and in many cases are way off the mark. The biggest agencies appear to be the culprits as they compete furiously to boost their share of the market.
Not surprisingly, the politicians have begun to take an interest in guide prices as the auction season moves towards its peak. Dublin TD Marian McGennis suggested this week that auctioneers should be policed by a regulatory body to stop buyers having to pay over the guide prices. She is proposing that agents found to be misleading buyers or sellers should be penalised and in extreme cases have their licences withdrawn.
Meanwhile, there is a deafening silence from the auctioneers' controlling body, the IAVI, which has promised in the past to deal with the problem but seems to have got nowhere. It insists that members' guide prices should be within 15 per cent of the selling price, but where this is clearly breached, the auctioneers invariably argue that their function is to get the best possible price for their clients. With so much interest in the Dublin property market, it will be no surprise if the auctioneers run into trouble unless the IAVI is seen to have some real control over this contentious issue. Chief executive Alan Cooke will have little time to enjoy the summer weather unless he acts fast on this one. The institute is currently seeking a new junior marketing executive, but if the guide price controversy continues to escalate, they may need a heavy hitting PR to bail them out.
