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you often hear of buying below market value...

how does this work ? thanks

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,383 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    You find someone who wants to sell their house for less than it's worth.

    Surprisingly, it's not that common...
  • beecher2
    beecher2 Posts: 3,677 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    The market value is really the value both parties agree to so it is hard to define what buying under market value means. Probably just means the price where you think you're getting a bargain. It works in exactly the same way as any other purchase as LTV is based on whatever is lower between purchase price and valuation.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Houses can take months to sell. Sp as an example. Somebody for personal reasons may be looking for a quick sale and be looking for a cash purchaser who can complete the deal quickly. Therefore they will price the property an attactive level compared to similar ones in the same locality to generate interest.
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