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Living FranchiseWhat is below market value (BMV) property?
What BMV property means, why sellers accept less, where deals come from and how to check a discount is real.
Below market value (BMV) property is property bought for less than its true market value, usually because the seller needs a quick or certain sale. Deals are often described as BMV when the discount is around 15% or more, but the discount only counts if it’s backed by evidence such as comparable sold prices.
This guide covers why sellers accept less, where BMV deals come from, how to check a deal is real, and the risks to watch for.
Key takeaways
- BMV means buying a property for less than it would sell for on the open market.
- Most BMV deals come from motivated sellers who value speed or certainty over price.
- A discount is only real if the valuation behind it is real. Always check sold prices.
- Finding BMV property and introducing it to investors is the basis of deal sourcing.
How below market value works
Market value is what a property would sell for on the open market, with a normal marketing period and a willing buyer and seller. A BMV deal is one where the buyer pays less than that.
For example, if similar houses on the same street have sold for £200,000 and you buy one for £165,000, that’s a discount of 17.5%.
The seller isn’t being forced. They’re choosing a lower price in return for something they value more, usually speed, certainty or less hassle.
Why do sellers accept less?
Common reasons include:
- Relocating for work or family
- Divorce or separation
- Selling an inherited property
- Financial pressure or the risk of repossession
- A property that needs work and won’t get a mortgage
- Landlords leaving the market
- A sale that has fallen through more than once
Where do BMV deals come from?
- Direct marketing to homeowners and landlords who may want a quick sale
- Estate agents with properties that have been on the market a long time
- Property auctions, where properties can sell below their market value
- Online property portals, looking for price reductions and long listings
- Your network, including solicitors, letting agents and other investors
How to check a BMV deal is real
- Check sold prices for similar properties on the same street or nearby, not asking prices.
- Check the property’s condition and allow for the cost of any work.
- Get an independent valuation or survey.
- Look at local rents and demand, not just the purchase price.
A big headline discount on an inflated valuation isn’t a deal.
Risks of BMV property
- Inflated valuations that make the discount look bigger than it is
- Hidden repair costs, especially on properties that need work
- Lender valuations coming in lower than expected
- Areas with low demand, where a cheap property stays cheap
The best protection is good evidence and an honest, independent look at the numbers.
BMV property and deal sourcing
Many investors don’t have time to find BMV deals themselves. That’s where deal sourcers come in. They find motivated sellers, check the numbers and introduce the deal to an investor for a sourcing fee.
Once you have a good deal, the next step is putting it in front of the right people. Our guide on how to find property investors in the UK covers how.
Building a BMV deal sourcing business
Sourced Property Partners get training, tools to find motivated sellers, Deal Analysts who check the numbers, and access to investors. Support from Sourced’s in-house mortgage brokerage is also available to help investors complete.
Frequently asked questions
What does BMV mean in property?
Below market value. It means buying a property for less than it would sell for on the open market.
How much below market value is a BMV deal?
There’s no fixed rule, but deals are often described as BMV when the discount is around 15% or more. The discount should be backed by comparable sold prices.
Are BMV deals legitimate?
Yes, when the seller chooses a faster sale at a lower price and the valuation is honest. Be cautious of deals where the discount is based on an inflated valuation.
Where do BMV properties come from?
Mostly from motivated sellers, such as people relocating, selling inherited homes or needing a quick sale. Auctions, estate agents and direct marketing are common sources.
Turn BMV deals into a business
Finding below market value property is a skill investors will pay for. Sourced Property Partners get the training, tools and investor network to do it properly.
