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.
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.
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.
Owain Thomas is features and contributing editor of Mortgage Solutions and editor of Specialist Lending Solutions.
He also has experience in the protection, pensions, workplace benefits and HR areas.
Owain has won two Headline Money Awards and the Protection Review’s Journalist of the Year award.