Ghost bidding widespread in auctioneering business alleges RTE
Published December 30th, 2006
Ghost bidding, or manufacturing bids to get a higher price for a property is widespread in the auctioneering business, it was alleged last night on RTÉ’s Prime Time programme.
Two anonymous contributors to the programme - both former estate agents - said it is common practice for auctioneers to “bid up†a property to the price they think a buyer can afford, even if there is no competition for the property.
The programme also claimed that auctioneers will often sell a property below its asking price simply to improve turnover; that they direct certain properties to “pet investors†in exchange for backhanders and that mortgage providers share financial data on clients with estate agents, who then know exactly how much those clients have to spend.
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