A below market value property is typically a residential property being sold at a price below its actual market value. Owners of these properties generally need to sell their property very quickly, hence the low price.
So, if you are looking for a below market value (BMV) property, how do you find it? It can be quite easy to see property available cheaply, but the whole point is that it must be an income generator – it needs to have some remortgage value after renovation, rental value against the mortgage or, a higher resale value.
We offer a Rent Guarantee Insurance which is designed to protect landlords against loss of rental income for up to a period of 24 months should a tenant fail to pay their rent whilst still living in the property. We also include Legal Expenses Insurance – covering the costs associated with pursuing legal action against your tenant – as well as providing a 24/7 Landlord Legal Helpline.
A motivated seller is someone that needs to sell a property. This could be for any number of reasons but may include an inheritance (probate) house, or someone who is in financial difficulty and needs to sell quickly. They may also be someone who just wants a quick sale from a cash buyer without the hassle of multiple viewings from different people etc.
While this could mean you can negotiate an attractive deal, do bear in mind there may be potential grief and stress on the sellers side. Motivated sellers tend to want fast sales as they need the cash. The quicker you can purchase, the better all around. Keep negotiations professional and kind.
Building a relationship with estate agents can be a great way to find below market value properties. BMV properties tend to go quickly, and often get sold even before they are listed on a property website. So, remind your estate agent contacts to give you a call when something potentially suitable becomes available, and that you can move quickly.
Sometimes you need to pound the streets and door drop flyers or letters expressing intent to buy property in a specific area. Again, make sure you are targeting houses you are interested in.
There are plenty of lead sites out there where you can buy motivated seller leads. The difficulty for you as a lead buyer is that you are never sure if the lead might have been sold to multiple people, not just you.
We saved the most obvious to last, but you can start your property searches from the comfort of your own home. Most of the big sites will have live feeds of property. But rather than simply running basic searches, you need to start looking at filters and some of the more advanced searches. These filters can include any properties that haven’t sold or those that have been recently reduced in price. These are good potential indicators of a possible deal.
As you can see, there are plenty of ways to find below market value property using multiple strategies which you can then investigate. Remember to stick to your plan and only buy those properties you are interested in adding to your portfolio. Don’t get pulled into a property deal that you don’t really want, or deals you cannot handle, just because you see a potential profit.