Ghost bidding, or manufacturing bids to get a higher price for a property is widespread in the auctioneering business, it was alleged last night on RTÉ's Prime Time programme.
Two anonymous contributors to the programme - both former estate agents - said it is common practice for auctioneers to "bid up" a property to the price they think a buyer can afford, even if there is no competition for the property.
The programme also claimed that auctioneers will often sell a property below its asking price simply to improve turnover; that they direct certain properties to "pet investors" in exchange for backhanders and that mortgage providers share financial data on clients with estate agents, who then know exactly how much those clients have to spend.
As for pointing out potential flaws in a property, estate agents will always accentuate the positive, the programme confirmed. "If there are faults you step by them and keep showing them the view," said one contributor.
Alan Cooke, chief executive of the self-regulatory body, the Irish Auctioneers and Valuers Institute, pointed out that estate agents were obliged to operate in the best interests of their clients - the sellers - in order to get the best price. A new regulatory authority is being set up to police the auctioneering business but it is unlikely to be in operation before the middle of next year.
