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What are BMV properties?

What are BMV properties?

What is BMV and how does it differ from other property investments?

 

BMV Properties

 

BMV stands for below market value and in our case it specifically means below market value properties. As you can probably guess, it means that the property is on sale at a lower price compared to the open market valuation of the property. These properties sell for lower than the market value due to a variety of different reasons such as:

  • Property owners in a rush to sell quickly

  • Property is in probate

  • Property owners need to liquidate their assets due to financial difficulty

  • Property needs some additional maintenance/repairs

  • Property has documentary problems

Due to the nature of BMV properties (Below Market Value Properties) as a buyer you’ll have to move faster in completing the deal compared to a regular market value property. Regular market value properties go under completion in 12-14 weeks, BMV properties move much faster and aim to finish completion in 4-6 weeks. The ability to move with speed and urgency is one of the key reasons why sellers will be willing to sell their property at below market value prices, failure to do so may lead to the seller pulling out from the sale and retracting their offer.

*Completion: The process of completing all the legal requirements required & the purchase of the BMV property.

 

How to determine the Market value of properties

 

Due diligence! Due diligence! Due diligence!

 

Due diligence is the name of the game in making a profitable BMV property investment and the UK has some great tools to help you determine the open market value of properties. There are various websites dedicated to helping you determine the open market value of properties but our recommendation would be to use Rightmove. It is one of the most popular and trusted tools in the UK.

DO YOUR OWN RESEARCH AND DON’T LISTEN TO ESTATE AGENTS

 

Estate agents often provide valuations with the aim of securing a sale, which can lead to inflated marketing prices. It is essential to recognize that these valuations may not accurately reflect the true worth of a property. Agents may market a property to you higher than the market value prices to make it seem like you’re getting a BMV property deal, when in reality you’ll be purchasing it at the open market value price.

Look for what the property is selling for and not what it is being marketed for

 

To gain a realistic understanding of a property’s value, it is advisable to focus on comparable sales. Comparable sales means looking for properties similar to what you’re purchasing and looking at their historical sales values. Comparables represent the actual prices at which similar properties have sold, rather than what they are being marketed for. While estate agents’ valuations carry limited weight, comparables provide a more objective perspective on market value.

Benefits and Risks of BMV property deals

 

Listing out the benefit of BMV property deals are easy. They sell for Below Market Value. You get to purchase a property investment at a discounted price and immediately gain profit in the value of equity in the property.

But what are the Risks when taking on a BMV Property?

 

Bear in mind that people only sell the properties at BMV prices due to the reasons we mentioned above – there will be something wrong with it. The risks with every BMV property deal will vary depending on the reason it’s being sold at BMV.

The only question you need to remember is, is there enough equity or is the discounted price low enough to justify tackling on those problems?

 

How to find BMV Property deals?

 

BMV property deals are not easy to come across. Other than being rare opportunities, BMV properties, once listed usually sell quickly due to it selling at a discount and the demand for BMV properties are consistently high as you can imagine. So how do you find them?

We find them for you

 

Keystone Invest has been operating in the BMV market for 15 years and we have connections to various brokers and vendors that are consistently offering us new BMV property deals. To stay up to date on BMV Property deals, you can subscribe to our newsletter to receive the BMV Property deals via email as they come in.

I’ve never bought a property before, can Keystone Help me?

 

Keystone Investment has 15 years of experience in completing BMV Property Deals and we’ll be more than happy to assist you with the entire process of completing the BMV Property Deal.

Difficulties in BMV Deals

 

You are dealing with people who are in distress due to the nature of the deal. They’re difficult to deal with most of the time, very demanding, and need to be managed very carefully. We act as your partner throughout the entire process of closing on the BMV property deal. Making sure everything stacks up properly and that we have full legal compliance on the property.

We’ll be with you every step of the way. If you have your own preferred bank, solicitors, mortgage brokers you’re more than free to do so. If you don’t, at no additional fee we may also refer our partners in the industry who we know are extremely dependable. BMV deals need to move fast and our partners know the Industry well and the can do the job quickly and efficiently.

No upfront fees or fees if the deal fails!

 

The way we differentiate ourselves from other brokers is this. We don’t charge you any upfront fees, unlike other brokers who charge you regardless if the deal fails. We only get paid upon the completion of the deal. You’re only risk will be the mortgage fees and solicitors fees.

We charge a flat fee, which you only pay once you get your new BMV Property.

 

We want you to build a portfolio

 

We charge a flat fee and not squeeze you for every penny we can get, because we want to work with you for the Long-term. We don’t want to have you buy one big purchase then leave. We want you to buy 1 property with us and find us so dependable that you buy 10 more!

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How to Keep an Eye for a Good BMV Property

When it comes to investing in real estate, finding a good Below Market Value (BMV) property can offer excellent opportunities. These properties are typically priced below their market value, allowing investors to gain instant equity or generate higher returns. However, identifying a good BMV property requires a keen eye and careful consideration of several key factors.

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0845 224 0974

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