QUOTE(supersound @ Apr 20 2014, 08:26 PM)
Then don't say a sub-sale is cheaper than market value.
That's what TS says, not me. It's not my position to dispute that, but I don't see why it is not possible, provided he did the due diligence.
Market Value aka Open Market Valuation is simply a price agreed upon by willing buyer and willing seller.
If I were him and in a position to buy sub-sale at BMV (Below Market Value), I'd check both the initial sale price, bank valuation as well as the last transacted to see if it *really* is BMV and not something only the agent says, taking into account of course all the other usual factors. (location, rental yield, etc).
There are many reasons why people are willing to sell at BMV, but you wouldn't know unless you have encountered them. Some of those I know are: asset disposition by companies, family/legal disputes (where several joint owners decide that is the best way to solve an ownership problem), seller desperate for cash (e.g. due to urgently leaving country, business or family emergency) etc.
The point I'm trying to make is that BMV does exist and it's merely a matter of doing homework, keeping in mind of course, Market Value can fluctuate according to laws of supply and demand as well as inflation over time.
I just want to point out here that BMV does NOT necessarily mean cheaper than initial launch sale price which is what you seem to be thinking. Otherwise, please sell us the house you are currently staying in at exactly the price you bought. Likely, you would not. Why? because you would have attached emotional value as well as made some minimal modifications/renovations that cost you money, not to mention legal fees, loan interest etc etc. If perchance you wanted to sell it, you would want to sell it at a price higher than what you bought, to compensate for what you already invested in it. There is nothing wrong in that, but that is obviously not going to be initial sale price. But supposing someone offered you a price 500% what you originally paid for, wouldn't you consider it seriously? Maybe you would think he is crazy, but that's a case of willing buyer, so why not? It's merely then a matter of whether you are willing to sell.