A subject that pops up with increasing regularity is that of Below Market Value (BMV) properties. There are a number of national companies that promote the idea of BMV, and usually tie it in with the idea that because the property is BMV, the purchaser can somehow acquire the property by putting down little, if any, deposit.
I've always been suspicious of these deals on the basis that if I owned a property, I wouldn't sell it for 25% less than it was worth - and the research I've done on the whole concept only re-enforces this view. Clearly I can't comment on market values in Wigan or Rotherham, but I've been offered a couple of supposed BMV deals in Northampton where I'm being told that the true market value of a property is £120,000, when I know full well that in reality it should be less than £100,000.
It seems that the Advertising Standards Agency are similarly sceptical : http://bit.ly/AaSdkh.
This rather supports the idea that if something sounds too good to be true, it very probably is. Yes, you get the odd vendor who is prepared to let his or her property go at a preferential rate because their personal circumstances mean they want a quick sale. But 25% is a bit optimistic. Even repossessed properties are selling for within about 15% of the market rate at the moment, and many of these are in a state of disrepair. Builder part exchanges trade at a similar 15% discount, and yet investors still seem taken in by perceived BMV offers offering in the region of 25%. My advice is quite simple - do your own research. There's such an abundance of property related information freely available on the internet these days that people can assess the true value of a property for themselves without doing too much legwork. It makes sense to do this, and to question the deal that's being put in front of you rather than buy something now that you regret later.
