Property investors and first-time buyers snap up repossessed homes

Now it takes much less time to sell a repossessed property.

The data from estate agent Spicerhaart’s Corporate Sales division has shown that property investors as well as first-time buyers are grabbing repossessed homes because they are chain-free.

At the moment, the average repossession takes only 21 days to exchange after the sale agreement was signed, with the national average for property sales being 59 days.

In April, the average time needed for a possessed property transaction to be accomplished from the moment of possession was 106 days, which is 18% (23 days) faster than in the same month of the last year.

In the meantime, the CML informs about the fall of the rate of repossessions in Q1 2010.

Mark Pilling from Spicerhaart Corporate Sales explains that repossessed houses are still valued by investors and first-time buyers due to their chain-free nature which enables a quick and effective property transaction without postponements associated with other party involvement.

The major driver for asset managers is to guarantee they sell repossessed homes as soon as possible and for the best price, since this is what both the lender and the borrower want in the first place.

He says that by choosing the proper marketing strategy for the property they can ensure that they are meeting both of these objectives.

While the number of possessions may be decreasing, there are still numerous factors that could reverse the situation.

Possible rises in interest rates, sweeping unemployment and diminishing support for forbearance measures could signify that many borrowers will be unable to make their monthly repayments in future, which is likely to result in the increase in the number of repossession cases.
 


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