Understanding Below Market Value Offers

Agree what the comparison means

Ask whether the reference value assumes the property is repaired, vacant, fully documented or sold in its present condition. Those are different propositions. Obtain independent assessments where practical rather than relying solely on the purchaser’s estimate.

Ask what the buyer has allowed for

Request the main assumptions behind the proposal: work, funding, professional costs, uncertainty and the buyer’s intended return. You do not need to accept those assumptions. Evidence such as a repair estimate or relevant comparable sale can help you challenge them.

A worked comparison — illustrative only

Suppose an open-market sale is estimated at £200,000 with £8,000 of seller-funded work and sale costs: that leaves £192,000 before mortgage redemption and tax. An investor proposal of £182,000 with £2,000 of seller costs leaves £180,000 on the same basis. The difference is £12,000. These invented figures are not a valuation, expected discount or forecast; uncertain prices and additional holding costs could change the comparison.

Compare conditions beside the numbers

A higher offer with unresolved funding and a lower offer subject to a survey each contain uncertainty. Record what remains before deciding what a price difference is worth to you.

• Buyer identity and evidence of proposed funding.
• Survey, legal and other conditions still outstanding.
• Who may revise the price and when.
• Your costs if the transaction does not proceed.
• Any reservation payment, exclusivity or other commitment.

Keep your own minimum outcome visible

Ask your adviser to establish mortgage redemption and other amounts needed to complete. Do not assume a discounted sale is viable if it creates a shortfall. Lucennio charges sellers no fee, but that does not remove separate costs or debt obligations.