Sir, - Mr Alan Cooke, Chiefs Executive of the IAVI, in his letter (May 14th), fails to address the central issue of the disparity between guide and market prices for houses. Whereas everyone expects and accepts that the primary duty of the auctioneer is to the vendor, the guide price is issued by auctioneers to inform prospective buyers. The problem is that some auctioneers are issuing guide prices which are attracting people who will not be able to afford the eventual selling price of the house, regardless of whether it sells at auction or later. This is wasting people's time and money, and not serving the vendor at all. A 15 per cent gap is acceptable - any more and the phrase guide price, which trades on the auctioneer's professional standing, should not be used. Everyone accepts that exceptions will occur - they have, however, now become the norm.
While Mr Cooke is engaging in public debate, perhaps he would like to justify his members practice of charging the vendor a percentage of the final selling price of a house? Fortunately, this predatory pricing practice is gradually disappearing from conveyancing, almost certainly due to the increased competition among solicitors.
Given the virtual cartel which exists in the Dublin auction market, I am not so sure that change will happen naturally. Discussion of this area is notably absent from any of the property supplements. Mr Cooke has reason to be satisfied with the performance of property journalists.
Whereas Mr Cooke is properly representing the interest of his members, the question is, who is representing the public interest? - Yours etc.,
Merton Drive, Dublin 6.