In this article we will discuss what a property sourcer is, what they do and how they can help you to achieve your investment objectives. We will examine what to look for in choosing a property sourcer and how to find one with the right experience, expertise and track record.
What Is A Property Sourcer?
A property sourcer is an individual or company who assists clients in finding a suitable investment or self-use property to purchase. They will typically conduct all negotiation and communication with the seller on their client’s behalf, providing a personalised and efficient buying transaction.
What Does A Property Sourcer Do?
This will vary depending on the property sourcer but will usually include providing property opportunities but may also include a number of additional purchaser services such as:
- Property details verification
- Due diligence (location, investment return, capital growth etc.)
- Viewings
- Price negotiation and offer submission
- Survey arrangement
- Solicitor referral
- Lettings and management referral
- Tax advisor and accountant referral
How Much Does A Property Sourcer Charge?
The current range of fees charged by UK property sourcing agents is typically £2,500 – £5,500, however this will vary depending on the property sourcing agent in question.
Whilst this may seem like a very wide range, fees charged by an experienced property sourcing company will be higher than those charged by a less experienced individual or sole trader. This will not only be due to the property sourcing company’s level of expertise, experience and established reputation but will also reflect its costs in running its business in a compliant manner.
This may include:
- Registered company offices
- Staff
- Industry memberships including consumer protection bodies
- Anti-Money Laundering registration
- Business insurance
- Website and marketing costs
Benefits Of Using A Property Sourcer
There are many benefits to using an established, professional UK property sourcing agent particularly if you are an inexperienced investor, first time buyer or an overseas purchaser. A good property sourcer will be able to provide you with a range of properties for consideration and provide guidance and assistance in selecting the right property for you. They may also have access to opportunities not available on the open market, allowing you to secure property you would otherwise not have access to.
Other benefits include:
- Immediate access to properties
- Off-market deals
- Negotiation and offer assistance
- Hands-off purchase transaction
- Research and due diligence services
- Referral to trusted professional network
- Local representation
Risks Of Buying From A Property Sourcer
There are of course potential risks involved in using a UK property sourcing agent.
The sourcing industry has many inexperienced, unregistered and non-compliant individuals and sole traders acting as ‘professional’ property sourcers. Paying fees to an individual without any business registration or compliance can result in great difficulty in the event of a dispute you are unable to resolve with them directly.
The most common complaint for those unfortunate enough to have dealt with an unprofessional property sourcer is that of sourcing fees which are not refunded for a deal which has not been delivered. Lack of communication when issues arise is usually the second most common complaint. In extreme cases, you may even find yourself having paid a sourcing fee for a property which may not even exist.
Paying close attention to the above will help you to avoid:
- Non-deliverable or non-existent deals
- Reliance on non-compliant sourcers
- Lack of accountability
- No recourse to third-party dispute resolution bodies
- Fees withheld in the event of disputes or non-performance
FAQ’s
Should You Buy From A Property Sourcer?
Using a property sourcing agent can accelerate your property purchase. It will it give you immediate access to properties and confidence in the knowledge the property and location have been thoroughly researched. A guiding hand through the purchase process from reservation to completion are also key factors. In summary, this will save you both time and money and can provide a hassle-free option for purchasing your UK property.
Is Property Sourcing Legal?
There is no legal restriction to a property sourcing agent acting on your behalf. This is usually in a consultancy capacity, with the sourcing agent helping to advise clients on the options available in the market. They are however not typically authorised or regulated to give investment advice. The property sourcing agent should also be registered with HMRC’s Anti-Money Laundering initiative, the Information Commissioner’s Office and ideally one of the UK’s dispute resolution bodies as discussed earlier.
How Do I Find A Property Sourcing Agent?
Perhaps one of the best ways is personal recommendation. Many established property sourcing agents receive referrals from existing clients they have previously helped. You may also search Google using keywords which relate to the subject or your own specific interest (type of property, location etc.), which will help you locate the services of UK property sourcing agents you may wish to contact. You should pay close attention to the property sourcing agent’s website content and testimonials, which will help you decide if they are the right kind of agent for you.
Conclusion
Choosing an established, compliant UK property sourcing agent with a proven track record is extremely important and should be taken into consideration from the outset. This information should be clearly shown on the property sourcing agent’s website, email signatures or should be available on request.
Take your time to find a property sourcer with all of the above and one that genuinely understands your position and objectives. You should also look for one who responds to your queries in a timely manner and of course, one that you feel comfortable and enjoy dealing with. With this in place, a great property sourcing agent can be the key to finding your ideal property or profitable investment portfolio with the least amount of effort.
Starfish Property Investments is ideally placed to assist Chinese buyers make the right decisions.
Contact us today to discuss how we can assist with your UK property purchase.
