# AMV - Advised Minimum Value, the key points



## mo3art

This might be good as a sticky because I know a number of people are experiencing some confusing with the IAVI guidelines at the moment.

The IAVI have issued details to their members in relation to the new "lauded" AMV system.

_"The recent of the auctioneering profession recommended that Advised Minimum Values should also issue in Private Treaty Sales.  However, the IAVI sees difficulty in legislating to prevent sellers asking a price higher than the AMV for their properties as to do so could prove unconstitutional. The IAVI rules of conduct state that members may quote higher than the AMV in Private Treaty Sales but, if doing so, they should use the term Asking Price and not Advised Minimum Value.  The Asking Price should not be less than the AMV."_

To translate this into plain English (!) & to clarify:

In the case of a Private Treaty Sale, the member is recommended to inform the vendor of their view of the minimum acheiveable value of a property.  They are not obliged to tell any potential purchaser as to the AMV of a property.  Members may still use the term "asking price".  This creates plenty of clarity for vendors but equally as much ambiguity for purchasers.

In the case of a sale by Auction, the IAVI recommends the following:

_"A Review of the Auctioneering Profession that reported in late 2005 recommended that the Guide Price issued by auctioneers for properties going to auction should be replaced by Advised Minimum Value, defined as the auctioneer’s true opinion of value as advised in writing to the seller prior to marketing commencing.  This recommendation has yet to be legislated for. The IAVI rules provide that a price lower than the AMV may be quoted in properties that have gone for auction only when the market has conclusively provedthat the AMV is not obtainable. "_

In plain english:
Prices for auction should be replaced by AMV, unless similar properties have sold for less than the AMV, in which case the guide price will be lower.  In the case of an Auction, the AMV is the guide price informed to both the vendor and the purchaser.

Please note the following:
These guidelines only apply to those estate agents who are members of the IAVI.
A number of estate agents are currently publishing AMV's on all properties no matter what the method of sale.  This is a personal choice by the firms and does not reflect the IAVI guidelines, and therefore purchasers/vendors should not treat this as the norm, however well received it may be.
The much talked about limits about percentage over guide prices/amv's are not mentioned in the publication below.  I will add to this post if I find any further information and/or guidelines.

Further information on this topic & indeed buying property in Ireland can be found at this location: [broken link removed]
The IAVI website and publication "Buying Property in Ireland".

Caveat:
I am not a professional, just somebody with a strong interest in the profession & I can to be corrected on any of the items set out above.  I welcome any comments on this topic!


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## levelpar

Hi Mo3art,  I think the regulation was brought in following the number of times when Auction Prices far exceeded the reserve or advised price. I imagine the idea was to attract a full house on the day of the auction. Consequently the auctioneers needed to throw some bait out by quoting low prices.  This happened so often that someone cried halt.  The regulations then included private treaty sales. Late last year we were given  a figure say X€ as the possible sale price but were told by the agents that they would start at X.€ minus to draw in some interest. If I understand it correctly ,this tactic will not be allowed again meaning that the price appearing in ads must not be lower that the price quoted to the seller .There is no problem people bidding higher for the house.  
Anyway, our agent never put the expected price in writing. Therefore ,it is possible that many agents will not either. Thus no Advised Minimun Value in writing ,no broken regulations


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## z105

AMV is old hat, Most advertisments are gone back to the old way - "Asking Price" !!! Sherry Fitz, Savills advertising their residential properties in IT yesterday as "Asking Price" bar one or two properties ! Though maybe it's because people aren't putting their properties for auction as much and are begging to sell them by asking for a price !!?


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## serotoninsid

Firstly, my apologies for dredging up an old thread.  However, I hope the mods appreciate that my query is very much related to this.

I am looking at a property that has been advertised with an AMV of €X. I have read the above - but I'm still a bit confused. The property is going for auction.  AMV - has nothing to do with Reserve price right?  In an auction scenario, is there any onus on the seller to declare what the reserve is - or is this only clarified as the auction proceeds (or indeed, do they even then - need to declare it?).

Thanks in advance for any info anyone can provide.


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