A property sourcer is a person or company that puts together property deals, bridging the gap between buyer and seller.
This middleman function is how property sourcers make their money – they are providing a service to both sides, making the process smoother.
Every property sourcing agent has its own way of going about business – its own standards, contract, terms and conditions. Consult a solicitor when drawing up any legal document if you can to make sure everything is clear and works for you.
If you’re looking to hire a property sourcing company to help grow your portfolio, there are a few important things you should know.
Let’s take a look at the top 3 things to think about when hiring a property sourcing company.
One of the most important parts of the whole process is how the company structures their payment and initial deposit.
Initial deposits are fairly standard practice in the industry. They are the only way property sourcing companies can guarantee, or at least gain some certainty, that the buyer is truly interested.
As the middleman, property sourcing companies need certainty not only for their own sake, but also for the seller’s.
The amount requested for the initial deposit should be reasonable – the industry standard is around £500, although some companies request up to £1000.
The stage at which you are expected to pay this deposit depends on the nature of your deal, so make sure the company takes pride in getting to understand your business. This should all be made clear in your initial consultation.
It’s possible that less is more for you right now, depending on the stage of your business, how much money you want to spend on sourcing, and other factors.
Some companies will show you a list of available property deals to look through and choose from based on criteria such as area, price, tenant profile, rental yield, condition, and more.
This service is more generalised, but it is more affordable and still presents a range of options.
On the higher end, there are companies that offer a bespoke service, going out and finding deals based on your criteria. They will then create a shortlist of properties sourced from estate agents, auctions, and elsewhere to present to you.
Winova Properties is one company to look at that provides impartial advice tailored to its clients’ requirements.
This bespoke service is ultimately more desirable, but it comes at a price that may not be worth breaking the bank over if you are a small or developing business.
Recognise what you need at this stage and go from there.
The final stage in the property sourcing process, aftercare, is not offered by all companies. Some simply source property deals and then help the client with the sales process.
Others, however, offer a sort of aftercare package. After helping you close the purchase, they helpy by communicating between relevant parties until the deal is complete or even beyond.
Aftercare can include liaising with third parties, including letting agencies, refurbishment teams, and more, to manage the property and keep on top of any work that needs to be done for you to use the property as you want.
This is an important function, but again remember that it will add to your costs.
There are many things to think about when hiring a property sourcing company, but these 3 pointers are a good start.
Get to know the industry – look at the price and initial deposit structure of any firm you consider hiring.
If you can afford to, consider a property sourcing agent that will tailor its search to your precise needs. Likewise, pay extra for an aftercare package, if you can, to help you through the deal.
Growing your property portfolio is a great way to take your business to the next level – make sure you follow these steps to pick the best property sourcing company for you at this stage.
Author Bio: Written by Ester K, sales and Public Relations Services (PR nerd), obsessed with research, sleeping in as much as possible, and listening to podcasts. When I am not at home with my fam I enjoy long walks through the beautiful city of Jerusalem.