BUY Below Market Value Properties in UK

What is meant by buying a property ‘Below Market Value’ (BMV)?

I like to think of it as simply as this: if I buy a property that is being sold through an estate agent at £110K for the low price of £80K, and I then resell it through an estate agent within 3 months at £100K, then I have bought it ‘Below Market Value’. In fact I will have bought it £20K (20%) BMV

Buying properties at discount prices of at least 20% BMV and renting them out at a profit is exactly the simple strategy that I have used to build a personal portfolio of 150 properties worth over £17 Million

The difficulty is where and how can you find such good BMV deals?

For most investors, this means using estate agents, auctions and property sourcing companies such as HBF Investments – but what are the differences for you to consider? And which source is likely to provide you with the best BMV deals?

ESTATE AGENTS?

Most properties on the market with estate agents are already overpriced. This is why it takes many months for them to sell. Buying a property that is being marketed for £110K for £90-£100K is NOT a good deal. You have to buy it MUCH CHEAPER at about £80K.

The problem is that estate agents will reject offers as low as these as the vendors are not in such a hurry to sell. You will wait a very long time to find such a good deal through an estate agent.

The usual discount from estate agents is no more than 5-10% BMV in most cases.

AUCTIONS?

Many investors see auctions as the only way to buy a property really cheap.

Most properties being sold at auctions either have some structural defects or other reasons why they are not being sold through estate agents. These repairs can cost investors dearly. Also, with lots of investors chasing few deals at auctions, many properties sell for prices far higher than their ‘Guide Prices’. The result is that investors frequently pay too much for auction properties.

The usual discount from auctions works out to be no more than 10-20% BMV in most cases.

HBF INVESTMENTS

Homeowners come to us after they have been unable to sell through estate agents because we are able to offer them exactly what they need – a QUICK SALE at a FIXED PRICE they can afford accept.

A typical property may have been on the market with an estate agent for many months at £110K so it likely to have a more realistic Market Value of just £100K. Because our investors are able to buy in weeks, the investor can buy for just £77K; a whopping £33K less than it is being marketed with the agents and £23K (23%) below its Market Value (BMV).

The usual discount from HBF Investments is FIXED at 23% BMV.