WHAT IS BMV PROPERTY?
David Barr
February 22nd, 2021
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Across this website and other property websites, you’ll see a lot of acronyms regularly used, but you might not know exactly what they mean. On property sourcing websites, like this, you’ll often come across “BMV” but what exactly does it mean.
We provide an insight into exactly what BMV property is, how you can actually identify it and find the best deals. Use the table of contents below to quickly navigate to the section that best answers your query:
BMV stands for Below Market Value and it means that you can purchase the property below its ACTUAL value, actual being the keyword. There are a mix of reasons that someone might look to sell their property below market value, the main motivation is that they need to achieve a quick sale, so if you’re looking to buy property below market value it is often beneficial if you’re in a position in which you can buy quickly.
Most below market value sales happen to cash buyers, meaning they are investors that don’t need a mortgage, but of course this doesn’t mean that if you don’t have cash at the ready you can’t get a good deal.
Finding below market value property is essential for investors because it puts them on the right foot from day one. It allows you to maximise the return on your investment straight away, or if you’re flipping you have a bit more flexibility when it comes to investing in renovations.
Now that is the million-dollar question. There are thousands of properties across the UK on the open market, how do you actually buy or even identify who is going to take a below-market offer?
Time on the market
One way of identifying whether someone will take a below market value offer is how long their property has been on the market. There are several Chrome extensions out there that can tell you the price history of the property on Rightmove, detailing exactly when it was first seen and any changes to the property price over the duration. If someone has been reducing their property frequently and it’s been alive for a while, this could be a good indication that they will take a lower offer.
Previous chain breaks
Another indication is if the property has had a few chain breaks in the past. The Chrome extensions you can get will also detail this, it’ll be when you see a property go from a certain price to a sold subject to contract status, yet it’s back on the market, and the more times this happens, the more frustrated the seller likely is. If you’re a cash buyer, you might be able to convince them that the sale is less likely to fall through and therefore get it at a favourable price.
Determine urgency
You can try and speak to the estate agent, or if they are doing the viewing, the owner directly and try to get a feel for how urgent they are to sell. It’s a bit of a poker game, and you might not have any success, but it’s worth trying to ask a few questions about their situation and why they are selling.
Or, sign up to our investor list!
We have a direct connection to a property buying company, being part of the same group of companies as ourselves. That arm of the company buy properties quickly from people who need to sell fast, as we buy below market value, and we’re able to pass a lot of this saving on to yourself in return for not having to go to the open market or auction.
You need to do your own research on the property market in the area before jumping into any purchase. A property you are looking at might have an artificially high value, and even if you’re buying it below what it is marketed at, you still might be paying over the odds.
You need to be able to do your own market research on the area, and before making an offer make sure you look at:
Sold house prices
One of the key things people forget to look at is actual sold house prices in the immediate area. Everyone tends to look at the properties that are on the market, but you need to actually determine what they really sell for in order to see whether or not you’re getting a good deal.
Current comparables
As we just mentioned, sold house prices are the main indicator, but you do also need to look at properties that are on the market currently which are similar to the one you’re looking at. You need to find properties that are a similar size and condition nearby and see what price they are being marketed at.
The condition of the property
The other thing is assessing the condition. We’re not talking about a property that requires a bit of paint or maybe carpets, but you might be able to get the property at a lower price if it needs major work as a kitchen or bathroom for instance.
The area house price trends
Finally, a further thing to look at is the trends. You can use several tools online like Rightmove, Net House Prices, Home.co.uk and more to determine if the area is trending upwards or downwards in terms of the house price. If the area is in decline, you’ll want to ensure you create more of a margin from the market value as a buffer in case the price in the area continues to drop.
As we’ve touched on, you can find below market value deals on the open market, but it’s tricky and might take you a considerable amount of time to find sellers with the urgency to sell.
This is where The Property Sourcing Company can help. As we mentioned, we are part of a group of companies that also includes a cash property buyer, and we purchase hundreds of properties a year at a discounted rate.
So why would we pass some of the discounts on to you? Well, our profit is in being able to flip the property quickly, as you would imagine holding the property for a set amount of time that it would take to sell for market value on the open market is costly, so if we can get investors to buy the property without having to go on the open market then it’s beneficial for both parties.
We get a quicker sale than the open market & you still get a significant discount, simple! You can join our investor list free of charge.
Start your property portfolio today!
Across this website and other property websites, you’ll see a lot of acronyms regularly used, but you might not know exactly what they mean. On property sourcing websites, like this, you’ll often come across “BMV” but what exactly does it mean.
We provide an insight into exactly what BMV property is, how you can actually identify it and find the best deals. Use the table of contents below to quickly navigate to the section that best answers your query:
BMV stands for Below Market Value and it means that you can purchase the property below its ACTUAL value, actual being the keyword. There are a mix of reasons that someone might look to sell their property below market value, the main motivation is that they need to achieve a quick sale, so if you’re looking to buy property below market value it is often beneficial if you’re in a position in which you can buy quickly.
Most below market value sales happen to cash buyers, meaning they are investors that don’t need a mortgage, but of course this doesn’t mean that if you don’t have cash at the ready you can’t get a good deal.
Finding below market value property is essential for investors because it puts them on the right foot from day one. It allows you to maximise the return on your investment straight away, or if you’re flipping you have a bit more flexibility when it comes to investing in renovations.
Now that is the million-dollar question. There are thousands of properties across the UK on the open market, how do you actually buy or even identify who is going to take a below-market offer?
Time on the market
One way of identifying whether someone will take a below market value offer is how long their property has been on the market. There are several Chrome extensions out there that can tell you the price history of the property on Rightmove, detailing exactly when it was first seen and any changes to the property price over the duration. If someone has been reducing their property frequently and it’s been alive for a while, this could be a good indication that they will take a lower offer.
Previous chain breaks
Another indication is if the property has had a few chain breaks in the past. The Chrome extensions you can get will also detail this, it’ll be when you see a property go from a certain price to a sold subject to contract status, yet it’s back on the market, and the more times this happens, the more frustrated the seller likely is. If you’re a cash buyer, you might be able to convince them that the sale is less likely to fall through and therefore get it at a favourable price.
Determine urgency
You can try and speak to the estate agent, or if they are doing the viewing, the owner directly and try to get a feel for how urgent they are to sell. It’s a bit of a poker game, and you might not have any success, but it’s worth trying to ask a few questions about their situation and why they are selling.
Or, sign up to our investor list!
We have a direct connection to a property buying company, being part of the same group of companies as ourselves. That arm of the company buy properties quickly from people who need to sell fast, as we buy below market value, and we’re able to pass a lot of this saving on to yourself in return for not having to go to the open market or auction.
You need to do your own research on the property market in the area before jumping into any purchase. A property you are looking at might have an artificially high value, and even if you’re buying it below what it is marketed at, you still might be paying over the odds.
You need to be able to do your own market research on the area, and before making an offer make sure you look at:
Sold house prices
One of the key things people forget to look at is actual sold house prices in the immediate area. Everyone tends to look at the properties that are on the market, but you need to actually determine what they really sell for in order to see whether or not you’re getting a good deal.
Current comparables
As we just mentioned, sold house prices are the main indicator, but you do also need to look at properties that are on the market currently which are similar to the one you’re looking at. You need to find properties that are a similar size and condition nearby and see what price they are being marketed at.
The condition of the property
The other thing is assessing the condition. We’re not talking about a property that requires a bit of paint or maybe carpets, but you might be able to get the property at a lower price if it needs major work as a kitchen or bathroom for instance.
The area house price trends
Finally, a further thing to look at is the trends. You can use several tools online like Rightmove, Net House Prices, Home.co.uk and more to determine if the area is trending upwards or downwards in terms of the house price. If the area is in decline, you’ll want to ensure you create more of a margin from the market value as a buffer in case the price in the area continues to drop.
As we’ve touched on, you can find below market value deals on the open market, but it’s tricky and might take you a considerable amount of time to find sellers with the urgency to sell.
This is where The Property Sourcing Company can help. As we mentioned, we are part of a group of companies that also includes a cash property buyer, and we purchase hundreds of properties a year at a discounted rate.
So why would we pass some of the discounts on to you? Well, our profit is in being able to flip the property quickly, as you would imagine holding the property for a set amount of time that it would take to sell for market value on the open market is costly, so if we can get investors to buy the property without having to go on the open market then it’s beneficial for both parties.
We get a quicker sale than the open market & you still get a significant discount, simple! You can join our investor list free of charge.
Large discounts on property
Completely transparent
Tailored investment opportunities
We’ll handle everything for you
Looking for hassle free property?
We’ve got you! Whatever your motivations as a landlord or property owner are, we can help source and match property with you.
When the foundations of your company are built upon industry knowledge and experience, you can’t help but be a self-confident company.
Here at The Property Sourcing Company, we are led by a roster of industry experts who have over 50 years of combined experience in doing BMV property deals, as well as packaging them up for investors.
Quality sits at the heart of our team, who go the extra mile to tailor our service to you. We pride ourselves in our ability to source you a wide variety of high-yield property investments.
Get in touch and we’ll establish what type of property you’re searching for, before talking you through our current investment opportunities. We’ll also keep you posted as we acquire new deals.
When you buy your investment property through us and we’ll take care of solicitors, surveys – everything – all to ensure you have a stress-free property purchase. It’s just one of the ways we make investment work for you.
Why invest with us?
Simply put, we’ll get you the best possible deal. Our sister company, The Property Buying Company, have been in the property buying industry for years & we have access to all their stock which is at a price point that is ready for investors to buy and make a great return on.
No middlemen, no stress & no hassle. We make investing in property and growing your portfolio as easy as it possibly can be.
