THE push towards auctioning of real estate can be seen to be a ruse towards earning easy commissions by making gullible sellers believe they are getting good prices.
The truth about pure auctioning is that it sets a price at only one bidding increment above the second highest bidder�s bid without exploring the maximum of the highest bidder�s preparedness to pay.
For example, I won two items for only $90, despite being prepared to pay more than $200, because the seller lost out once the second highest bidder withdrew from the bidding.
Auctions work well when there are small differences in the bidders� preparedness to pay and it is respected and accepted that most of Australia�s wool clip is sold by auction.
However, with huge differences in preparedness to pay, like in real estate, the auctions have the severe potential to rip off sellers to give agents easy commissions.
If there is a problem with real estate agents often overpricing properties at appraisal stages, then that problem should be addressed separately and not be exploited at the sellers� cost.
ALF CAMPBELL, Beckenham.