People buying distressed or repossessed properties at auction can generally expect to pay in the region of 20% below market value as a result of insolvency practitioners rushing to sell, according to an established auctioneer.

Distressed or repossessed properties, which generally only tend to make it into certain auctions, should be selling for 20% more than at current rates, according to Edward Swindells. Swindells claims that once insolvency experts and lenders have offloaded the assets attached to these properties, they are no longer incentivised to achieve the best price for the vendor and aim to sell them as quickly as possible; an attractive proposition for buyers look to bag a bargain.

Edward Swindells, auctioneer at Swindells Auctioneers and MS Auctions London, says: "It is frustrating that insolvency practitioners continue to rush into selling distressed or repossessed properties when the times comes, with a small nucleus of auctioneers. This approach rarely achieves the best possible price for the vendor or the corporate client.

"Our figures show to be up to 20% uplift being achieved when these properties are first brought to auction when compared to there often very short term resale. Lenders should have a sense of duty to help both there vendor and business to business client achieve the best possible price and should be working more closely with the industry to secure this outcome."

Swindells believes that the best way to achieve the best possible price is to bring the property to auction, though consulting with more than one auction house to encourage competitive appraisals and more importantly competitive final bids.

"We are always able to attract suitable buyers to our auctions if the property is initially pitched at the correct price," he adds.