Friday, November 26, 2004

How to find properties at 20% BMV

Properties at Bellow Market Value
To identify those properties on the market being sold at 20% BMV, you will need to source the owners who are desperate enough to want to sell their homes and cannot afford to wait to take advantage of the best price or market value. These people are called ‘Motivated Sellers’.

What is a Motivated Seller?
There are two main factors that make a ‘Motivated Seller’. Firstly, and the most obvious, a motivated seller is a person who has an immediate requirement to sell their home or property to access their money.
Secondly, due to financial pressures, timescales become more apparent and the required time to meet them shorter.
The combination of these two factors can easily force a person to sell their property ‘Below Market Value’ (BMV).
A motivated seller is a valuable commodity, as valuable as gold dust to a property investor as yourself. They hold the key to purchasing properties below market value.
My experience has taught me to only purchase property from a ‘Motivated Seller’.

As part of your property investment education, it is important to understand what forces a person to become a ‘Motivated Seller’.

Repossessions
Under the terms of most mortgage contracts, the lender will reserve the right to issue repossession proceedings if repayments are not regularly made on time. Two months of arrears is quite sufficient for a lender to take action. In reality, most lenders will try to reach a mutually suitable arrangement to help the person clear his/her arrears and avoid taking proceedings.
Unfortunately, should this not be possible the lender may take legal action to gain possession of the property. At this point the lender may commission an estate agent to take action to sell the property quickly. This usually results in the property being sold under market value.

Financial Problems
When people get into financial difficulties and then struggle to pay off their mortgage repayments, credit cards, loans and other bills, they may wish to avoid CCJ’s or a downgrade to a smaller home. As the financial  pressure mounts the need for a quick sale becomes paramount.

Divorce or separation
Divorce or separation together with selling your home are among the most stressful times we may encounter in our lives. Having to deal with both situations at the same time can prove very distressing.
At this daunting time both parties need to resume their new lives as quickly as possible and the most efficient way of selling their property would be to sell under value.

Relocating or emigration
A fresh start, a new job overseas, a new partner or relationship are just some of the reasons why there may be a need to sell a home or property quickly.

Bereavement
Families that suffer bereavement or have to re-home an elderly relative may take on the responsibility of selling a property quickly and painlessly before suffering additional costs or stress.



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