Auction values reach new high
But Edward Swindells of Swindells Auctioneers, says the majority of banks are still trying to sell these properties as quickly as possible, thereby not allowing them to achieve their full potential price which could be up to 20% more at some auctions.
Edward Swindells, auctioneer at Swindells Auctioneers and MS Auctions London, said: “In spite of an increase in average values, the majority of banks are still rushing to sell repossessed properties which could achieve a much better price if they were marketed with more than one auction house. However, most banks will still revert to placing all repossessions with the biggest brands in the industry that cannot always deliver on achieving the best possible outcome for the vendor.”
And he added: “Marketing repossessed properties with a number of different auction houses is the way to ensure they achieve their best possible price. With demand currently outweighing supply in the Capital and South East and the opposite being true in the regions, the onus is on banks to ensure they are doing everything they can to appeal to the widest pool of buyers in the market. A variety of different strategies are required to suit each individual case rather than just looking for the quickest solution.”
Recent figures from the Essential Information Group have shown that the majority of repossessed residential properties being sold at auction recently have achieved around 20% less than their average market value.