Estate agents Collier Jackson-Stops is introducing a new formula to replace the traditional guide price given on houses for sale.
The estate agents will now advertise the minimum value they believe the property is worth. The Advised Minimum Value (AMV) is one of the recommendations made to the Government by the special working group established to examine the auctioneering and estate agency sector.
Guide prices have proven controversial in the past because there is often a wide discrepancy between the guide price given by an estate agent and the actual price a house makes.
Peter Kenny, of Collier Jackson-Stops, says that by issuing details of the AMV prices will become more transparent for both the seller and potential purchasers. 'The actual price achieved in any sale will still be driven by market forces and we cannot legislate for that,' he cautioned.
'However, with AMV, buyers will know that the minimum value has been determined by the auctioneer based on location, the structural condition of the property, the standard of the interior design and so on,' he said.
