How to buy a property below market value

Checklists

Checklist provided by 

www.propertychecklists.co.uk

 
Decide what property type you are going to buy eg two bed Victorian terrace.
Note down the square foot/metre of the type of property you are looking to buy Tip: it will be on the property's EPC.
Note down any special features of the property which may affect the value eg good condition, needs re-wiring, has a conservatory, corner plot.
  Research what price similar properties to the one you are planning to buy have sold for within the last 3-6 months  Sites such as mouseprice.com or nethouseprices.co.uk will help.
  Find similar properties which have been sold, but haven't yet appeared on sold property price lists.
  Ask the agent who sold the property to tell you if the property sold for 'near the asking price' or below. Remember the agent can't legally tell you what it sold for, they can only give you an idea.
  Once you know what prices properties are sold for locally you can start looking for BMV deals.
Always visit the property you are purchasing - never buy unseen, whatever reason you are given.

Properties are sold below market value at:

  • Auctions (not always though!)
  • Through property sourcing companies WARNING! make sure they are members of the Property Ombudsman Scheme
  • Direct from the buyer (e.g. repossessions) 
  • Estate Agents with sellers requiring a quick sale
Have two or three properties to compare and make offers on.

Make an offer approximately 10-20% below the REAL property's value (ie not off a marketing price).

Make sure the offer is subject to a RICs surveyor's valuation who is qualified to do Residential Valuations.

If the offer is accepted, send in the RICs valuer and if in poor condition ensure you have a building survey with a valuation.
Instruct a legal company and ensure they are aware you need to purchase the property quickly and are buying at a legitimate discount - especially if you are securing a mortgage to purchase the property.

All our information is brought to you by Kate Faulkner, author of
Which? Property books and one of the UK's top property experts.
This website is Copyright © Designs on Property Ltd and
Propertychecklists.co.uk protected under UK and international law.