Housing prices in London are continuing to rise again and you might be wondering how you can cash in on the growing market?
Although the process may be daunting, one of the best places to start is with a property sourcer. A property sourcer is a professional that puts together property deals to then sell to property investors like you. They act as a middleman between the buyer and seller and help both parties create a smooth transaction and sweeten the deal in whatever way they can.
Property sourcers have to go through quite a vigorous process to become a sourcer and will operate as either an individual or as part of a larger sourcing company.
How to Find One
If you’ve decided that you want to find a property sourcer, the next step is to find out where to look.
There are a myriad of websites and tons of sourcers and sourcing companies all around the London area. Almost all of them can be found with a quick google search. However, although the internet will give you a massive yield, you can’t be sure that all of them have the right experience or specialization to suit your needs.
A much better way to find one is to reach out to your friends/colleagues and ask for their recommendations. Property sourcers can be incredibly helpful in your search for an investment property, but you need to make sure that you find one who has the relevant experience and understanding aligned with your investing goals.
Company or Person
If you can’t find a sourcer through your own contacts, then turning to the internet is the next best thing. However, you will need to look at the proper criteria and assess if a particular sourcer is the right fit for you.
The first thing you will need to decide is whether you want to work with a company or an individual. Despite advertising the same service, companies and individuals will have quite different offerings.
Name brand companies will offer the benefit of having reviews and tangible experience, but their offerings are, for the most part, rather limited to newly developed or off-plan properties, which may not be the right fit for you if you are trying to add value to the property you purchase.
Individuals will give you a wider variety of properties, but are more difficult to find and will have the additional challenge of assessing their credibility.
The Bottom Line
Next thing you need to worry about is the sourcing fee. Sourcing fees will range anywhere from £500 to £5,000+ and at the end of the day, you really just have to balance the cost versus what they are bringing you (your bottom line). There is no one fair price and the amount differs from case to case.
The best (and simplest) way to understand if the price they are charging is justified is to add it to the purchase price. If the sourcer found you a property that’s available for £10,000 less than if you were to find it yourself, then paying £3,000 is more than worth it. But if all they can do is find you a property that you could’ve found yourself, then you really shouldn’t be paying any more than £1000 (all they did was save you time).
Add these fees to your purchasing price, and if it still seems like a good purchase, then the pricing fee is perfectly reasonable.
Finding the right property sourcer can be grueling and at times expensive and discouraging, but taking the time to find the right one could be the key to your next big investment success. Remember: be patient and diligent, and you might just find the next golden opportunity.