Below Market Value (BMV) in property terminology are residential properties that can be bought for less than their Actual Market Value.
Properties can be bought at Below Market Value for a multitude of reasons, some of which are listed below:
The 4 D's
Death - the owner has passed away and the family is selling
Divorce - the owners have separated
Debt - the owners are in financial difficulty or facing repossession
Disrepair - the property needs significant refurbishment
Some, but not all of the above reasons for a property being sold BMV mean that the owners would also like a quick sale, which is advantageous for negotiations, if you can offer a quick sale without going through a complicated purchase process.
Investing in Below Market Value properties is an excellent way for property investors to maximise Return on Investment (ROI) as they are effectively purchasing a property with equity from day one.
For example, a property worth £100,000 on the open market, bought for £75,000 benefits from £25,000 instant equity if the property is in good condition. If it needs for example a £10,000 refurbishment to bring it up to scratch, then there is still £15,000 of equity in the property after the refurbishment is complete.
Final Thought - If you need any assistance with finding BMV properties, Garner Maven can assist you...