What is a property deal sourcer?
Property deal sourcing is the role of finding, analysing, and negotiating properties for investors. For a lot of investors, a property deal sourcer can provide essential and much-needed services such as exclusive deals, time-saving processes, and expert local knowledge. In this article, we highlight what the role of a property deal sourcer is, what the benefits of hiring one are, and what you should look out for when partnering up with them.
Property deal sourcer vs real estate agent
What does a Property Sourcer do?
- The sourcer advertises a property to their clients and the investor then agrees on the deal
- The purchase price is decided and a ‘Sole Agency’ or ‘Option’ Agreement to sell
- Solicitors are brought in by the property sourcer and the property is purchased
- Sourcer receives a fee from the investor
What does an Estate Agent do?
- Seller and estate agent agree on the price for the property
- Estate agent advertises the property as a ‘Sole Agent’ and organises viewings
- Estate agent receives the offers and passes them onto the seller
- Once the property is sold, the estate agent receives a commission on the sale of the property
Benefits of hiring a property deal sourcer
If you don’t want to deal with the legwork that goes into sourcing a property yourself, then a property deal sourcer is a great option. It can make the process a lot quicker and save you countless hours of searching for a property.
Paid on success
Most property deal sourcers only get paid on a successful purchase of a property. This reduces the risks involved in hiring a third-party company and means that your success is their success.
A lot of property sourcers have access to deals that are ‘Direct-to-Vendor’. This means that they are not advertised to the public, found on a third-party website, or at an Auction House.
At Closefield Property we work very closely with people in a vast range of locations across the UK. This means we have a great understanding of the local market, housing supply and tenant demand. Additionally, our experience has taught us where to invest and where it’s best to avoid.
How to find the right property deal sourcer?
Get to know them first
Before partnering up with any company, you should get to know them first. Do you get on with them? Are they pushy? Are they willing to spend their time getting to know your goals are your investment objectives? If the answers to all three are ‘yes’, then you are off to a good start.
Do your due diligence
Research on your end is key when partnering with the right property sourcer. Start by looking them up on Companies House. Are they registered as a business? How long have they been in business for? Have they had multiple failed businesses in this space before? How long have they been in business for? These are all questions that you should be asking.
Ask for testimonials
Any trustworthy business should be displaying their testimonials on their website. Therefore, doing a little investigating of your own and finding out whether they have reputable testimonials is always a good idea. Alternatively, ask the property sourcer directly for some testimonials.
Ask to see Case Studies
When speaking to a property sourcer, ask them to walk you through some case studies. The more the better, as you can then go and study the information in order to ask further questions. This will give you an understanding of how they operate and whether you think you want to work with them. Finally, and probably the most important thing to consider. Don’t rush the decision and don’t let yourself ‘be rushed’.
What kind of Certifications and licences should a property deal sourcer have?
Property Redress Scheme
Firstly, check whether they are registered with a Property Redress Scheme such as The Property Ombudsman Scheme.
It is important that you know where the property deal sourcer keeps their client’s funds. They should have a segregated and fully insured client account to only hold these funds. This will prevent you from losing the money you have invested if they become insolvent.
Simply check the ICO register. It doesn’t mean they are criminals if they haven’t, but how can you expect the rest of their house to be in order it they aren’t?
This check is really basic. Simply check with HMRC to see whether they are registered for money laundering.
Residential Landlord Association or National Landlord Association
This is another simple check to do. Simple check with either the Residential Landlord association or National Landlord Association to see whether they are registered or not.
Property sourcing at Closefield Property
At Closefield Property, we use a variety of property sourcing techniques that sets us apart from the competition. This way, we’re able to find high-yielding properties with strong capital growth potential. This gives you a significant advantage over the average property investor. For more information on our property sourcing services, simply book a call with us today. We will start off by getting to know your investment needs and wants and will work with you to bring you the best investment opportunities in the UK.