WHAT DOES BELOW MARKET VALUE MEAN?

“Buying a property below market value is when you buy a property for less than its true value on the open market – the figure a property expert would suggest you could achieve based on a valuation.”

But hang on, don’t the majority of houses go for Below Market Value anyway?  After all, no one ever offers the asking price. 

Well, not necessarily. You see the asking price is what the property is marketed for – it doesn’t necessarily represent its value. In fact, many times asking prices are overinflated due to an agent’s overvaluation or a homeowner’s unrealistic expectations. So even if a property goes for significantly below the asking price, it’s the figure that it sells for that dictates its open market value. A BMV property is anything priced below this figure. 

At Amaanah estates, we specialise in BMV property so you don’t have to. Time is everything when dealing with property, so why waste yours sourcing your own BMV deals when we can do all the hard work for you? All you have to do is pick up the phone. 

HOW DO I WORK OUT IF A PROPERTY IS BELOW MARKET VALUE

It’s one thing knowing what BMV property is. But it’s another thing entirely to be able to spot it.

For starters, you must do your due diligence and research both the property and local market thoroughly. Fail to do so and you risk being misled by your own inaccurate figures. 

So to get you started, here’s a few tips we’d suggest for working out if a property is BMV..

1. Find recent comparable properties and compare their sale price.
2. Determine the value of the properties currently on the market.
3. Compare a property’s features and USP’s.
4. Get a grasp of the local market and how quickly properties sell.
5. Ask an online property valuation tool (Just be sure to take this figure with a pinch of salt!)

Follow these tips and you should have a good sense of a property’s value and be able to determine whether it’s indeed a BMV property or not.