Oireachtas Joint and Select Committees

Wednesday, 13 May 2015

Committee of Inquiry into the Banking Crisis

Nexus Phase

Mr. Patrick Davitt:

Exactly. They can, yes. Well, they can ask for, like, you know, if a purchaser gets a blue book valuation the property to find out what the valuer believes that the value of that building is before they put it on the market, pre-putting it on the market, well then obviously the purchaser is going to know that the value of the property is X, Y, Z, whatever it is and they are going to know how the valuation is worked out. It was worked out on open market or whatever it is worked out on. So they are going to know that, and that's the information that they are going to have. They are going to put their property on the market and they are going to put a reserve price on it of X, Y, Z. So then the person who wants to buy the property is going to come and look at the property and say, "Well I think that's too much money for it", or "I don't think that's too much money for it, but I better get a valuation on it to make sure of what the situation is with it." So the chances are that valuers may well talk at that particular stage about the assumptions that have been put on the property, if there have been any put on it.