7 Tips For Finding a Below Market Value Property

A property investor's dream? Finding a property below market value requires a cost-effective refurb to increase its value significantly. People constantly talk about ‘unicorn deals’ and ‘turn-key investments' whilst emphasising how hard they are to find. But, are they truly so hard to find, or are they just trying to throw you off the scent of riches?

Yes, you do need to be in the know regarding what makes a great investment first, to then have the ability to find one below market value. The best thing about investing in property is that there is no one perfect way to do it. There are smarter ways to do it, and finding the right idea that's below what the average area is listed for can be the difference between getting a 10% return on investment vs an astonishing 15%+ return. In this blog, we will cover the need to know in finding BMV properties. This is insider tips from those who make a living off packing below-market deals, and we’re here to share this with you!

Find Good Comparables

First things first, a profitable below-market value deal can often be right in front of you. You might be looking in the right place, without doing the correct due diligence. If there's one thing to get right from the get-go, it should be your property due diligence. Once you’ve found a property that seems interesting from face value, you need to find a good comparable. Here are a few key factors to look out for when identifying comparable properties: 

Location – Proximity to the target property (same neighbourhood, city, or market area)

Property Type – Similar asset class (e.g., residential, commercial, industrial, or mixed-use)

Size & Layout – Comparable square footage, number of units, or lot size

Age & Condition – Similar construction year, building materials, and renovations

Rental Income & Yields – Comparable rental rates, occupancy levels, and return on investment (ROI)

Market Conditions – Recent sales prices, demand trends, and economic factors affecting the area

If your property matches the layout and similarity to what your comparable previously sold for, you might be looking at a below-market deal.

Go Direct To Vendor

Secondly, you can often find some of the most lucrative investments when you go direct to vendors. Whether you have family friends looking to sell, or you join a couple of Facebook community groups and inquire about those looking to sell, you can find off-market deals at a below-market cost with the right networking. If reaching out to potential sellers, make sure you build a great rapport with them to begin with. Then, you can explain the benefits of selling directly to you as opposed to going through an agent (no agent fees, shorter turnaround time, etc.)

Auction Homes 

Additionally, one of the best ways to find below-market deals is to source auction houses. Buying homes at auction is one of the cheapest ways to invest in property, initially. The cost associated with buying auction homes can often weigh up to be the same as purchasing on-market property. Just be extremely cautious when looking into purchasing auction homes, speak with the correct lawyers and consider the following things:

Identify Existing Problems

Auction properties are often sold 'as-is,' meaning you take on all the issues that come with them. Some may require extensive repairs, which can eat into your profit margins. Always do your due diligence before bidding. Research the property, visit if possible, and review the legal pack carefully to avoid surprises. Hiring a surveyor for a professional opinion can also save you from costly mistakes.

Set a Budget and Stick to It

It’s easy to get caught up in the heat of an auction and bid beyond your means. Always set a maximum budget before attending and don’t go over it, no matter how tempting it may be. Consider all additional costs such as legal fees, refurbishments, and any hidden charges that may arise. Staying disciplined will help you secure a profitable below-market-value property without unnecessary financial risk.

Look for Motivated Sellers

Motivated sellers are those who need to sell quickly due to personal or financial reasons. These can be homeowners facing repossession, landlords looking to offload properties, or even people relocating for work. Identifying these sellers can give you leverage in negotiations and help you secure a great deal.

Some ways to find motivated sellers include:

• Checking public records for foreclosure or probate properties

• Networking with estate agents who may have inside knowledge

• Sending direct mail campaigns to homeowners in target areas

Negotiation is Key

Once you find a below-market-value property, your negotiation skills will play a crucial role in maximizing your investment. Always approach negotiations with a win-win mindset. Show the seller how your offer benefits them, whether it’s a fast sale, cash payment, or a flexible completion date. Being respectful and professional can make all the difference in sealing the deal.

Final Thoughts

Finding below-market-value properties isn’t impossible, but it does require patience, research, and strategy. By understanding UK property investments, finding good comparables, going direct to vendors, exploring auction homes, and leveraging motivated sellers, you can unlock lucrative investment opportunities.