Selling a property can be tough, and it gets even harder when you need to sell it fast. The usual process of listing, viewings, and negotiations can take a long time, which is stressful when you’re in a hurry.
But there’s a way to speed things up: selling your property below market value (BMV). By pricing it lower, you can attract serious buyers quickly and avoid many delays.
In this guide, we’ll explain what BMV is, why it might be a good choice for you, and how to sell your property using this method. Whether you’re facing financial issues, moving to a new place, or dealing with family changes, understanding BMV can help you sell your property faster.
What is below market value?
Below market value (BMV) refers to properties sold at a price lower than their current market value. Sometimes it’s also referred to as ‘under market value’.
Typically, it means selling a property at 85% or less of its market value as set during your last property valuation. This discount compared to similar properties in the same area can attract buyers looking for a bargain, but it also helps sellers who need a quick sale.
Why sell below market value?
There are various reasons why a property owner might choose to sell their property for less than the current market value:
Financial difficulties
When you face financial hardship, selling a property quickly can provide much-needed relief, and help you access funds rapidly, avoiding further financial strain.
Relocation
If you’re thinking of selling up and moving abroad, or just want to move to a different part of the UK, this kind of sale can expedite the process, allowing you to settle in your new location without the burden of an unsold property.
Avoiding repossession
If you are at risk of repossession, selling your property at BMV can prevent losing your home to lenders.
It provides a way to settle debts and avoid the negative impact of repossession on your credit rating.
Changes in family circumstances
Life events such as divorce or separation can lead to the need for a quick property sale.
In these situations, selling below market value can facilitate a faster resolution, allowing both parties to move on and settle their affairs more quickly.
Inherited property
Inherited properties can sometimes be a burden, especially if you have no intention of keeping or maintaining them.
Selling at under market value can provide a quick and hassle-free solution.
Diversifying your portfolio
If you have a property portfolio, you can strategically sell a property below market value to diversify your portfolio.
This approach lets you swiftly liquidate assets and reallocate funds into different types of investments or markets.
It also helps you reduce risk and potentially enhance overall returns, providing greater stability and new opportunities for growth.
Benefits of selling your property at BMV
Selling your property below market value comes with several advantages:
Speed of sale
You can sell your property quickly since these kinds of sales attract buyers looking for a deal. This leads to faster transactions compared to traditional sales.
Reduced stress and hassle
A quick sale reduces the stress and hassle of dealing with prolonged viewings, negotiations, and potential fall-throughs. It streamlines the process, making it more straightforward and less time-consuming.
Guaranteed sale
Many buyers of under market value properties are investors or companies with the funds readily available, ensuring a more certain sale. This can be particularly reassuring if you need to secure a sale quickly.
Avoiding lengthy traditional sales processes
Traditional property sales can be lengthy and complex, often taking several months to complete and sometimes relying on buyer chains that could collapse at any moment. Redicing the price can bypass many of these delays, offering a much quicker sale.
How to sell your property at under market value
OT Property Group can connect you with a panel of over 8,000 investors who focus on quick purchases to expand their portfolio. This extensive network ensures that you can sell your property quickly, providing a swift and reliable solution to your needs.
Preparing your property for a quick sale
Make sure your property is presentable and address any minor repairs. Even when you’re selling an under market value property, first impressions matter and can affect the speed and final price.
To maximise the appeal of your property and ensure a quick sale, consider these tips:
- Enhance curb appeal: Keep the exterior clean and well-maintained with tasks like mowing the lawn and trimming hedges.
- Declutter and depersonalise: Remove personal items and excess clutter to create a sense of space and help buyers envision themselves in the property.
- Clean thoroughly: Ensure the entire property is spotless, with special attention to kitchens and bathrooms.
- Make minor repairs: Fix leaky faucets, replace broken tiles, and ensure all light fixtures work.
- Stage your home: Arrange furniture and décor to highlight the property’s best features and create an inviting atmosphere.
- Be flexible with viewings: Accommodate potential buyers by being flexible with viewing times. The more accessible your property is for viewings, the higher the chances of finding a buyer quickly.
Avoid listing with a standard estate agent
To take advantage of a faster sale through a BMV agency, it’s important that your property isn’t already listed with a traditional estate agent.
Working exclusively with an agency like OT Property Group and our partners means you can avoid the penalties or administration fees often associated with withdrawing your property from a traditional listing.
This exclusive partnership streamlines the process, allowing for a quicker and more efficient sale without the usual constraints of traditional estate agents.
Legal and financial steps to take
Finally, make sure you consult with legal and financial advisors to understand the implications of such a sale.
If you do opt to list your property with one of our partner agencies, their advisors will help all of your paperwork is in order and that you fully understand the terms of the sale.
Conclusion
Selling your property below market value can be an effective solution if you need to sell quickly.
By understanding the benefits, risks, and steps involved, you can make an informed decision that suits your needs.
Consider BMV as a viable option and take the necessary steps to ensure a smooth and fair transaction.
Frequently Asked Questions
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What does below market value mean?
Below market value (BMV) refers to the sale of a property at a price lower than its current market value, typically at 85% of the market value or less. This can be due to various reasons such as financial difficulties, the need for a quick sale, or investment strategies.
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Why would someone sell a property below market value?
Property owners might sell below market value due to financial hardship, relocation, avoiding repossession, changes in family circumstances, inherited property, or to diversify their investment portfolio.
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Can selling under market value affect my credit rating?
Selling a property below market value itself does not directly affect your credit rating. However, it can help avoid repossession and settle debts, which can positively impact your credit score.
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What are the tax implications of selling property below market value?
The tax implications of selling property below market value can vary based on individual circumstances and local tax laws. It’s advisable to consult with a tax professional to understand potential tax liabilities.
