What is a BMV or Below Market Value Lead?

Vincent Wong

 

 

We have generated over 40,000 BMV leads in the past 30 months and www.NetworkPropertyInvestment.co.uk has been one of the top lead providers in the UK since 2006.

 

If you’re new to converting leads, we’ve got some great tips for you. Let’s start with explaining what a lead actually is.
A BMV lead is basically information extracted from a seller with regards to his / her property and circumstances. It must be distinguished from a deal which has been negotiated and “done and dusted”. A lead could cost anything from £25 to £250 whereas a deal would cost thousands of pounds of finder's fees.

Generally, the more useful and detailed the information available in a lead, the more expensive it is to generate and hence the more expensive the lead becomes. The process of qualification is to establish the level of motivation of the seller through some pre-defined criteria.

With our leads, we ask sellers if they would consider a preliminary offer based on a specific BMV percentage (25%) and they need to confirm TWICE that they would seriously consider it before submitting the enquiry to us (See Lead Qualification Process).

A very common question that people ask is that why have we qualify our leads at 25% BMV and not 30% or above? With mortgages LTV at 75%, you need about 30% BMV to do no money down deals.

Yes, that's right. If you're a buy-to-let investor, you do need 30% and preferably more for that cash back!

The reason is that in our experience, asking the 25% BMV question is optimal when it comes to determining the level of motivation of the seller. Very few people would automatically agree to discussing an offer that is 30% BMV online.

Which is easier to convert – from 0% BMV expectation to 30% BMV or 25% to 30% BMV?

If a seller has seen a preliminary offer that is 25% below what they expect the property is worth and has said “yes” to speaking with a buyer TWICE, is this a motivated buyer or not?

Of course it is!

It is then our job to use our skills to adjust the property’s valuation and increase the percentage BMV.
We’ll give you some more tips in a couple of days.

 

Best regards,

Vincent Wong

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