An Introduction To Buying BMV Property At Auction

BMV Property at auction. Below Market Value

Much of what is sold through property auctions are sold at below market value so buying at auction is still one of the best ways of picking up BMV property. But, all kinds of properties are bought and sold in this way and it isn’t uncommon for houses to be sold at over market value as well. It depends entirely on the motivation of the buyer.


Property Expert Series: Andy Thompson From SDL Auctions


Below Market Value Property At Auction

Amy: When you are buying at auction or selling at auction, you could potentially be looking at BMV (below market value) property.

What kind of discounts could you be potentially looking at?

Andy: What you need to remember is, at an auction, any type of property could be sold.

It could be a beautiful five-bedroom detached. It could be a one-bedroom burnt out flat. It could be anything in between.

It might be tenanted, it might be vacant.

So there is no golden rule. And whilst a lot of property will sell below market value, some of them will go for more. There’s a lack of logic.

So, sometimes I’ll sell a property and I’ll be looking at it from an investment point of view and asking myself why the buyer has bought it for so much. Maybe it needs a spending on it, a lot of work doing, and the buyer has just bought it for its market value after this work has been done.

But we don’t know the circumstances of the buyers.

For example, I sold a house one recently to a lady, and she blew everyone out of the water, bidding high.

But it turned out that her dad had built the property. So you never know what extra value a house might have for somebody, at a personal level.


Join Our FREE Property Training Course Today

Sign up for our free online property training course today.

In there we cover a range of different property strategies to help you get started on building a long-term property portfolio or creating a cash flowing property business.

We also look at ways to increase your return on investment with any of the properties you may be considering and we also have a couple of cheat sheets and downloadable documents in there as well.

Just click the image below to join our free training course today.


Any Questions?

If you have any questions or thoughts about buying BMV property at auction then leave them in the comments section below.

Alternatively, you can get in touch via our Facebook page.

We’d love to hear from you and as always we’re happy to help.


Related Posts:

Introducing Andy Thompson from SDL Auctions The first in a new series on property auctions with Andy Thompson From SDL Auctions. Auctions can be fantastic places to secure BMV deals but for the newcomer, they can be very daunting places. The tr...
What Steps Should I Take Before I Buy A Property At Auction? Before you buy a house at auction you will need to do your due diligence. This means you need to have seen the house you want to buy (preferably more than once) and you will need to understand what is...
How Do Property Auctions Work? The process of buying a house at a property auction has three distinct phases. Firstly there is the preparation period after the catalogue has come out. Second is the day of the auction, itself. And, ...
Property Auctions | What Is A Reserve Price? In a property auction, there is a guide price and a reserve price. A guide price is what a buyer will see in the auction catalogue and is a guide to the value of the sale. The reserve price, on the ot...
Property Auctions | What Exactly Is In The Legal Pack? When it comes to property auctions, one thing you must pay close attention to is the legal pack. If you don't know what you are signing up for then you might be in for a nasty surprise which could com...

Leave a Reply