[Article] New formula to replace guide price on houses

Victor

http://www.rte.ie/business/2005/0913/property.html

New formula to replace guide price on houses
September 13, 2005 19:55

Estate agents Collier Jackson-Stops is introducing a new formula to replace the traditional guide price given on houses for sale.

The estate agents will now advertise the minimum value they believe the property is worth. The Advised Minimum Value (AMV) is one of the recommendations made to the Government by the special working group established to examine the auctioneering and estate agency sector.

Guide prices have proven controversial in the past because there is often a wide discrepancy between the guide price given by an estate agent and the actual price a house makes.
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Peter Kenny, of Collier Jackson-Stops, says that by issuing details of the AMV prices will become more transparent for both the seller and potential purchasers. 'The actual price achieved in any sale will still be driven by market forces and we cannot legislate for that,' he cautioned.

'However, with AMV, buyers will know that the minimum value has been determined by the auctioneer based on location, the structural condition of the property, the standard of the interior design and so on,' he said.

EKRIUQ

Yes but what about the sellers reserve!, If the Auctioneers opinion is €200,000 different from the sellers reserve price houses guided at a price won't sell at that price and were back to the same problem thats here now.