Marketing a repossessed property comes with significant responsibilities. Following the news that the Financial Ombudsman Service has received complaints about disputed property valuations on the sale of repossessed homes, it appears I am not alone in this sentiment.
Despite Robert Sinclair declaring “the problem is property is only worth what people will pay for it and in a distressed sale it is never going to be easy to get market price”, there are actions lenders should always should take to ensure properties are correctly exposed to the market to drive maximum value.
Repossessions should never be entered into auction where homeowners are at the mercy of the hammer and buyers looking for bargains. Properties should be marketed across the whole of market. Every estate agent in the UK should get the opportunity to market the property unless the homeowner chooses to restrict the marketing. Public notices must be put up, giving as much chance as possible of a fair and reasonable price. Competition through multi-agency selling terms will ensure properties are exposed fully and avoid uncertainty on whether an agent has actively marketed a property.
It is never easy to obtain market price but with a little more effort, the correct starting valuation and the use of the best local agents, the vast majority of cases can achieve this figure and more.
With their focus on treating customers fairly and best practice, it is inconceivable that any lenders should wriggle out of their responsibility towards repossessed homeowners.
Asset management director,