Sir - For quite a while we have been listening to estate agents and auctioneers telling us how "the market" is driving up the price of houses. I disagree.
Rather than the market being responsible for increasing prices, it is the manner in which some auctioneers exploit the market that causes prices to soar. Take for example the policy of one of our "leading" auctioneering firms: once a house reaches its "guide price" and there are two or more interested parties, a best and final offer system is implemented. This means that all interested parties must submit their offer in the form of a sealed envelope. It becomes a game of Russian roulette with people often putting in bids way over and above what other houses in the area have sold for in an attempt to secure the house. When this happens, the price this house is sold for now becomes the guide price for the next, similar house in the area. As far as I can see it's a vicious circle.
The auctioneers say they are trying to "maximise the price for the seller" and they want to "put all buyers on an equal footing" but surely this is another form of "gazumping". What is wrong with the honest approach where everyone knows what the highest price is and people can keep going or drop out when they reach their limit ? - Yours, etc.,
Paul Gaffney, Sutton, Dublin 13.