Below market value properties allow people to invest in homes that are up for sale at a reduced rate to what they are actually worth. The secret to a good property investing deal is to get the property at a low price to make as much of a profit as possible. Maybe this isn’t so much of a secret as basic common sense but the skill comes when you need to work out just how much of a discount you are really getting.

Some investors are looking for prices that are as much as 45% below market value while other less experienced players are settling for the more average bargain of 15-25% off the market value. The trick is to focus on the valuation of the property rather than just the discount. Below market value properties may have a cheap price tag but it is vital to work how cheap, cheap is. If a first valuation is far too high then the discount that you get with an agreed below market value price will be far less than you may realise.

Basically if a property is valued at £100,000 and you are offered it with a below market value price tag of £60,000 then you may think you are getting a 40% discount. But if the property has been wrongly valued and it is actually only worth £80,000, then you are only getting a 25% discount. The best way to establish if a property has been valued at the correct price is to use a reputable company like Property Banker who do all the leg work for you.

If you want to take advantage of below market value property please get in contact with Property Banker we’d be happy to hear from you.

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1. How to find a private BMV deal
2. How to find below market value property
3. What to do if you find a below market value deal