If the new pricing system for auctions was supposed to bring greater clarity for buyers sick of the discredited ‘guide price’ practice, then the results from the first full week of Dublin auctions are sending out very mixed messages.
There were a total of 13 auctions around the capital and, of these, eight properties either sold under the hammer or after the auction.
But of those that sold, in all cases the price was way above the new “advised minimum value” (AMV) now being quoted by estate agents who are members of the Irish Auctioneers and Valuers’ Institute. This AMV is meant to represent the estate agent’s true opinion of the market value of the property at the start of the marketing campaign.
But last week, one commercial/residential property, 75 Mespil Road, Dublin 4, sold at a Lisney auction for EUR1.05m above its EUR1.65m guide price - 63% over its AMV.
Sherry FitzGerald’s Lewis Beirne set an AMV of EUR1.75m on a bungalow on 0.8 of an acre, Gort na Blaigh in Ballymount Dublin 24. It sold for EUR2.475m - 41% over the AMV.
While these two properties were more difficult to price because of their commercial/development potential, other more mainstream residential homes got equally strong prices.
Douglas Newman Good’s AMVs on three northside starter properties were particularly low - two apartments on Nelson Street went for 18.4% over their pre-auction AMV, while a charming period redbrick cottage, 22 Connaught Parade in Phibsborough, Dublin 7, unsurprisingly went for EUR392,000 - 20% above its eyecatchingly low AMV of EUR325,000.
Agents argue that they can’t be responsible if buyers want to bid much higher than the AMV in the auction room - but rather confusingly, the properties which were withdrawn at auction are also now on the market at higher prices than the minimum value being advised by the agents.
**Douglas Newman Good had truly massive viewings at 5 Frascati Park in Blackrock, Co Dublin, but it failed to sell at auction.
It was withdrawn at its AMV of EUR1.4m but now carries an asking price EUR100,000 higher at EUR1.5m. This is 7% above the advised minimum value. **
The same goes for 22 Brooklawn, Mount Merrion Avenue in Blackrock which was withdrawn at its EUR1.4m AMV and is now quoting EUR1.5m through Sherry FitzGerald.
Agents say they must follow their clients’ instructions when quoting an asking price set after a property has been withdrawn.
But although the gap between the old auction “guide price” and the real price the buyer wants to achieve is narrowing under the new advised minimum value system, for buyers the new system is so far not providing the sort of accuracy they had hoped for
.
)