false property-sales figures from agents

The IRISH TIMES property editor has written to Irish Estate Agents warning them to cease providing false figures for property sales. The Irish Times publishes sales results in it's weekly property supplement every Thursday.

ORNA MULCAHY, Property Editor says that in many cases sales figures have been inflated by as much as 20% to hide the fact that values have dropped much more than the public actually realise.

It is clearly in the interest of estate agents to hype-up values in an attempt to re-ignite sales in a stagnant market.

Property has slowed to a stand-still over the last year and anecdotal evidence tells us that those selling are often knocked-down by as much as 20% below advertised guide prices - bringing values closer to the 30% figure which experts believe is the amount of over-valuation.

I personally know of two very similar properties in a sought-after city centre location. The vendor of one had hoped to achieve around EU1.4 million for her property ..an over-eager neighbour pushed that to EU1.75 million which was clearly over-valued even as the boom reached it's peak in Feb 2007.

An identical, if not more attractive, property 4 doors away came to the market around Feb - 12 months later - and didn't sell at EU1.3 million so was reduced further to EU1 million. I wouldn't want to be that lady who has seen the value of her property drop 40% (EU750,000) in 12 months!

RTE commented that Estate Agents are known for their 'hyperbole' and we shouldn't be surprised they are hiding the truth. Remember that the next time you hear the property market is recovering slowly.