House generates 30 percent less proceeds when sold under execution
June 12, 2014
The proceeds of house sales under execution in the Netherlands are on average 34 percent under the market price (an average of 58,000 Euro). This is evident from an analysis of 3440 enforced sales in the period 2006-2012 by the Tilburg professor real estate economics Dirk Brounen and strategic advisor Martijn de Jong-Tennekes van Meso.
Image: © Nationale Beeldbank
This study was conducted on the basis of data provided by the National Mortgage Guarantee. The discount percentage even increased to more than 40 percent in recent years. "As a result, home owners are left with a residual debt that is much higher than necessary", according to Brounen.
Koop voor een prikkie een woning op de veiling, Quest (2014) - in Dutch