Question 1

What does BMV mean in property investment?

Accepted Answer

BMV stands for Below Market Value. A BMV property is one being purchased at a price below what independent valuations or comparable sold prices suggest it is worth. Professional property deal sourcers specialise in finding BMV opportunities that aren't available on the open market.

Question 2

How is below market value calculated?

Accepted Answer

BMV percentage = (market value − purchase price) ÷ market value × 100. For example, if a property worth £200,000 is purchased for £160,000, the BMV is 20%. Our calculator uses comparable sold prices or your entered market value to calculate the discount.

Question 3

What is a good BMV discount for a buy-to-let or BRR deal?

Accepted Answer

Most experienced investors target at least 15–20% BMV to provide a meaningful equity buffer after all acquisition costs. For a BRR strategy, you typically need at least 20–25% BMV plus refurbishment uplift to successfully pull capital back out at refinance. A 10%+ BMV on a well-located property can still be a solid deal if the yield is strong.

Question 4

Why do property sourcers charge a sourcing fee?

Accepted Answer

A sourcing fee compensates the deal sourcer for the time spent finding, negotiating, and packaging the opportunity — including researching the market, running the numbers, and obtaining comparable evidence. The fee is typically paid by the investor on completion and should be factored into your total acquisition cost calculation.

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