How can you tell if a property is BMV?
It’s not easy and many people will confuse an asking price with value. To establish what the true market value is you often need to dig a little deeper and use more than one source. Here is our beginners guide to assessing the value of a property.
1) Call around estate agents in the area advertising similar properties for sale. Make to calls to the agents posing as a buyer, seller or prospective tenant. You will probably find that some agents quote high prices to sellers and lower prices to buyers. Somewhere in the middle is a more realistic value. This is also a good exercise for determining what kind of rent you can realistically achieve in an area.
2) Check out the prices of similar properties on the market today. You can use online sites such as Rightmove for this, but remember that asking prices are not the same as market values. You can still you use this as a tool if there are plenty of properties on the market in that area.
3) Ask around any contacts you may have who live local to your chosen location, those friends you never talk to on Facebook maybe useful after all.
4) Check out any recent sales in the same block of flats/street, a good site for this is nethouseprices.co.uk
5) You could try a valuation tool like Mouseprice or Zoopla. This will provide useful extra information but these valuations are sometimes way off.
6) Double check everything you have been told. Is that local school really so good? Is that investment project definitely going ahead or is it just a proposal? Do your research.
7) Remember if it seems too good to be true……it probably is.
8) Make sure you understand why you are getting it at this discount.
At Rescue my Pension we have a sourcing team dedicated to finding the best BMV deals in the UK. If you would like to access the BMV deals we get and see if they fit into your strategy then sign up to our newsletters below. You will then be emailed with any BMV property investment deals we have.