Buyers get heavy discount at mortgagee sales
It comes after reports that the number of mortgagee sales is increasing – there were 524 nationwide in the first quarter of this year, according to Terralink International.
Telfer Young Valuer Andrew Chambers, of Hawkes Bay, said properties at forced sales in his area had sold for everything from 40% below market value to 3.5% below. He said most would go for 20% to 25% off the price that would normally be expected.
The sale price depended to some extent on the property's location, he said. “Less desirable localities are probably 30 per cent below.”
He said homes that were going to mortgagee sale were often poorly maintained, which reduced their sale price.
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