4 BMV Properties You Need To Pass Up
Discounts drive shoppers’ attention. The same holds true when houses are sold below market value. After all, who wouldn’t want to buy something for less than what it’s actually worth.
But are all BMV properties a gold mine? Here are four types of BMV properties you may consider passing up.
Stay as far away as possible from BMV property which demand a great deal of repairs. Most of time you’ll see advertisements for 3 bedroom houses being sold for almost half of the original price, but when you read the fine print it has crumbling foundations or collapsing ceilings. No matter how much the price has been discounted, you’ll probably end up spending more because of the repair costs. I’ll pass that “bargain” up, anytime.
It’s not just about the visible defects you have to watch out for. Hidden defects such as faulty wiring and termites could also balloon the entire cost of the repairs. That’s why it’s important to hire professional home inspectors or verify repair costs with a contractor before buying houses with a few kinks here and there.
Properties in Bad Locations
Location has big impact on house prices. Bad location, means low prices. It’s simple as that. While leaky roofs can be fixed, you can’t move a home away from its spot. Which is why houses found next to the freeway, a landfill, or a commercial zone are always sold at a discount. The sellers probably got that property at a very low price, and you’ll do the same thing when it’s time to move out.
Foreclosed homes are houses which the bank seized from their owners. These houses were mortgaged to the bank as security for a debt or some other transaction, so when they defaulted on their payments, the banks booted them off their properties.
To recover their losses from the debt, banks try to sell foreclosed homes to the highest bidder at BMV property auctions, but when they fail to catch a bid that meets their original bid price they turn to selling the house in a traditional way.
Sometimes, when these houses are listed on the market after a failed auction, they’ll advertise it at the same price they offered on the auction, but there are also times when banks undercut the price below market value in order to get multiple offers on the place. And when the demand is high, the price goes up with it.
Believe it or not, some bmv property leads are really too good to be true. That 4-bedroom house in a nice neighbourhood may be advertised below the market value of other properties in the same location, because there was a misprint or the agent sent in the wrong details for the sale.
These mistakes can be easily committed, especially with online ads. Agents can leave off a zero at the end or type as the first number a 2 instead of a 3, both of which dramatically alter the price.
So before jumping up and down because of “out of this world BMV property deals” call the listing agent or seller to confirm if the details of the sale is accurate or not.