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Below Market Value (BMV)

  • Buying property below the perceived market value.
  • Often involves buying property from 'motivated sellers' of distressed property in pre-foreclosure status.
  • Home owners about to lose their homes are encouraged to sell to such buyers on the basis they can remain in their own homes as 'tenants'.
  • Any debt on the home is normally repaid by the investor.  The investor gains the advantage of a reduced price property whilst the seller avoids bankruptcy and having to move.  Allowed to remain in the same home a compromise is achieved.
  • Controversial topic with dome investors selling within a short time of purchase resulting in the home owner now tenant becoming homeless.
Published: 24 September 2015 Last Updated: 17 November 2021