Sales values of repossessed homes on the rise

Sales values of repossessed homes on the rise

The amount of money being achieved for repossessed homes is at its highest level in nine months, according to property firm Spicerhaart

The company stated it achieved an average sales value of 104.29 per cent against the market value on properties that were taken into possession and sold in March 2019.

This figure was up from an average of 96.73 per cent in the preceding three months, from December 2018 to February 2019.

On a property worth £150,000 that meant an extra £11,340.

The estate agency said the property market as such had improved, with properties completed in March achieving an average of 24 viewings and five offers.

Dave Miller, client account manager at Spicerhaart Corporate Sales, the asset management arm of the company, said: "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.

"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 an average sale price of 104.29 per cent of the market value, the highest since June 2018’s peak of 107.20 per cent. Achieving a sale of more than the property’s market value is a real benefit to the borrower."

But Nick Morrey, product technical manager at John Charcol, cautioned: "This all hinges on how they work out what the true ‘market value’ actually is since there is not a set formula to determine a true value or price.

"That said Spicerhaart is absolutely right in that estate agents have a duty of care to obtain the highest price for both the lender and the re-possessed, and it’s great to hear this is at the heart of what they are doing.

"The best news for the UK is the feeling that enquiries to purchase property might be on the up, but there is clearly still a shortage of property for sale  as evidenced by the averages of 24 viewings and five offers."