Oireachtas Joint and Select Committees
Wednesday, 13 May 2015
Committee of Inquiry into the Banking Crisis
Nexus Phase
Mr. Patrick Davitt:
Well, they played a part because they were in the game, and the game being that they were in the business. Like, if prices were moving up the auctioneer would have to get them because they have got a responsibility to the vendor that employs them to sell a property to get the best price possible for that property. And in this particular time that we're speaking about, if you went to auction, a vendor could go to the auction and sell for herself and run up the price of the actual sale themselves to the value, to the reserve price that they would decide to put on the property. So auctioneers were caught in a bind between representing their agents, or representing their vendors and getting the best price. And, obviously, if you get the best price, like if auctioneers knew, obviously, that the prices were going to tumble by 50% and 60% when we look ... hindsight is a great thing but we were, we were part of it so, yes, of course.