Property and Environment

Figures show that repossessed homes selling for less is a myth

It is often thought that repossessed homes in the UK sell for less than their market price but new research reveals that sales achieved are at their highest since June 2018.

The amount of money being achieved for a repossessed home by Spicerhaart Corporate Sales is at its highest level in nine months.

Spicerhaart Corporate Sales achieved an average of 104.29% against the market value on properties that were taken into possession and sold in March 2019, up from an average of 96.73% in the preceding three months.

On a property worth £150,000 that is an extra £11,340, and the firm points out that the market has improved recently and this is reflected in the fact that the properties which completed in March achieved on average 24 viewings and five offers.

Ensuring all properties were available until exchange of contracts helped Spicerhaart Corporate Sales achieve higher offers on a number of properties which also impacted the timeline.

While repossession is always the action of last resort, the process of inviting higher offers up to the point when contracts are exchanged ensures that the eventual sale has a positive impact on the borrower in terms of a higher sale price.

It also focuses on shortening the time it takes to achieve a sale, bringing significant benefits to the borrower by returning any surplus money to them more rapidly, helping them to achieve closure and giving them the opportunity to move on in their lives.

‘While having to take someone’s home into possession is never ideal, achieving a sale quickly and raising the maximum amount for it potentially means more money for the borrower, more quickly,’ said Dave Miller, client account manager of Spicerhaart Corporate Sales.

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‘It is a myth that repossessed homes are sold off cheaply. We have a duty of care to get the best possible price for a repossessed property and in March this year, we have achieved the highest average price since June 2018’s peak of 107.20%. Achieving a sale of more than the property’s market value is a real benefit to the borrower,’ he explained.

‘The market was quite slow towards the end of 2018, but things are now starting to pick up, so, by taking advantage of the current levels of demand for properties throughout the country we are able to get the best price for both the borrower and the lender,’ he added

Source: Property Wire

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