Sir, - The article "Agents still way off on guide prices" by Jack Fagan, Property Editor, (Property Supplement, May 8th) did not get off to a good start when claiming that a price paid of £3,570,000 is more than 50 per cent over a guide price of £3,400,000-plus.
It then got worse, by completely missing the point which aggrieves auction bidders. Though auctioneers do indeed often give guide prices which are outstripped by the prices achieved at auction, this can, charitably, be explained by their being pleasantly taken by surprise by two or more enthusiastic bidders. What is not easy to explain, charitably, is the practice of giving guide prices which fall short of the reserve price on the day.
Many auctioneers of course offer other services, notably valuing and surveying. One cannot help suspecting that the lower the guide price, the more surveys and valuations are carried out for potential bidders, and the better for the industry as a whole. One cannot help suspecting also that guide prices would suddenly become much more realistic if laws were enacted making auctioneers and vendors jointly liable for the survey costs incurred by disappointed bidders at auctions where the reserve exceeded the guide. - Yours etc.,
Dublin 14