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Repossessed property sales prices pick up above market value

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  • 11/04/2019
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Repossessed property sales prices pick up above market value
Sales prices for repossessed properties have jumped in March to the highest value in nine months, according to Spicerhaart Corporate Sales.

 

The firm said that on average properties were sold at 104.29 per cent of the marketed value, up from an average of 96.73 per cent from December to February.

In 2018 the average sale price was 102 per cent of the asking price, in 2017 this was 100.3 per cent, and in 2016 it was 104.67 per cent.

For a property marketed at £150,000, this would mean a price of £156,435 would be achieved instead of £145,095 in the previous three months.

And the firm said sales were 25 per cent up on the previous three months’ average.

Spicerhaart confirmed that 99 per cent of sales were achieved through estate agents and properties received on average 24 viewings and five offers.

It also invites higher offers up to the point when contracts are exchanged.

The firm noted that while repossession was always the action of last resort, the higher sale price had a positive impact on the borrower by returning any surplus money to them.

 

Best price duty of care

Spicerhaart Corporate Sales client account manager Dave Miller (pictured) noted that the market was quite slow towards the end of 2018, but it was starting to pick up.

“It is a myth that repossessed homes are sold off cheaply,” he said.

“We have a duty of care to get the best possible price for a repossessed property and in March this year, we have achieved an average sale price of 104.29% of the market value – the highest 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 added.

 

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