Guide: What is property sourcing?

Forth Action Invest on November 11, 2022

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Keen to learn about what property sourcing is? Or deciding on whether you should use a property sourcing agent? Or simply looking to venture into the investment world?

We’re expert property sourcing agents covering the North West and we’ve compiled a guide containing everything you need to know about property sourcing.

And it’s fair to say that property is an exciting market. It’s often high risk for a high reward, but there are multiple ways this can quickly turn south.

Unfortunately, like in all industries, there are people who aren’t quite up to scratch in their sourcing capabilities and can leave you feeling a little bruised or bewildered.

Simply put: choosing a property sourcing agent is no different than choosing your builder or solicitor.

A certain level of due diligence and research is required to make sure you’re comfortable with your chosen agent. And any reputable property sourcing agent won’t mind; they’ll encourage it!

*Please note this blog does not constitute investment advice. Conducting your own due diligence and being aware of risks before making any investment is key. Seeking independent financial advice may be appropriate.

What is property sourcing?

Property sourcing refers to someone who finds properties, analyses the market, negotiates and lands a deal. They work closely with property investors to help them find the best deal possible.

This includes scouring the local market including off-market properties, researching the area and market for investment, building up a network of contacts and choosing the best strategy for investment.

What does a property sourcing agent UK do?

A property sourcing agent should be an expert at their craft.

A good and reliable property sourcing agent will find you a great property investment opportunity and provide a deal to go alongside it. This is often known as ‘packaging a deal.’

For the agent, the work starts much earlier than initially meeting with the client. Substantial time and effort goes into networking with housing associations, other property investors, and other types of sellers. 

This networking, when done correctly, can lead to some cracking opportunities that you wouldn’t otherwise see on the market.

An off-the-market property means you’ll beat out the crowds of people trying to put an offer in who bump up the price.

The agent will constantly assess the market, investment scene and the relevant area. 

At Forth Action Invest, we work in the North West and have unrivalled investment opportunities due to our network, history and expertise.

We know the area like the back of our hands. If you’re interested in investing in the North West, check out some of the more lucrative places for buy-to-lets here.

How to effectively work with a property sourcing agent

Wanting to get the best bang for your buck when working with a new professional? We all do. That’s understandable. 

Do your due diligence before going ahead with any property sourcing agent. 

There are some simple checks as a precaution (along with further research) like: Are they fully compliant? Are they a member of the redress scheme? And do they have a registered website on companies house?

When you’re comfortable, here are some steps on how to potentially achieve your investment goals:

1. What’s your budget?

Do some research ahead of time and set a budget in mind for your new venture. 

But choosing to work with a sourcing agent on their fee amount alone could cost you more in the long run.

This agent needs to be reliable and an absolute expert at their craft. This will help you to get the best deal possible within a reasonable budget.

2. Speciality

It’s ok if you’re interested in hearing about some deals before deciding exclusively on one property style. But if you have a general idea of what investment types you’re interested in, it’s best to find a property sourcing agent who specialises in these.

Some agents only work with HMOs, whereas others are experts in buy-to-lets. Some are focused on commercial properties, while some work exclusively in residential.

Choosing an agent comes down to your goals and future aims.

This applies to your chosen area too. Are you focusing on London or the South coast? Or are you looking at the North West? 

Choosing an agent who focuses on these areas, makes them more likely to have a solid network and in-depth knowledge.

Why the North West can be a golden location for property investing

The potential is endless as development continues within the area, with various exciting projects and regenerations.

Manchester, for example, has been hailed the capital of the North, with other big cities growing in popularity too.

And with London’s growing cost of living, people are moving north. Manchester recently beat London in the UK element of the best cities to live in.

With the fastest capital growth rate annually (than anywhere else in the UK) and the demand and strong rental yield, the North West is a great area to invest in.

To find investment opportunities, learn more here from North-West property specialists Forth Action Invest.

3. Communicate

Be as specific about your dream deal as possible, alongside any key information, your current circumstances and the type of returns you’re looking for.

This is the best way to make sure both you and the agent are on the same page.

The more you can communicate your wishes, the closer to your goals they can get. Meeting face to face is advised (before using their services) and maintain regular contact once you’re ready to go ahead.

4. Planning for the worst

Great, you’ve communicated and found a fully compliant sourcing agent you’d like to work with.

Now it’s important to find out what their procedures are in a worst-case scenario. What if the vendor pulls out? Or the deal you agreed on falls through?

It’s up to the property sourcing agent to outline their procedures ahead of time, so you’re both aware of what will happen should the worst occur.

Photo by Matt Walsh on Unsplash

Why use a property sourcer?

• Less time-consuming
• Exclusive investments to add to the portfolio
• No stress as the sourcing and evaluating are taken care of

The world of property can be overwhelming when you’re not sure where to start, this is where a property sourcer comes in. They have the knowledge and know-how to get the ball rolling.

As a result, the process can be much smoother and less time-consuming than without an agent.

For those not in this line of work, on-the-market properties are the main source of investment opportunities. Whereas a property sourcing agent will have access to a whole bunch, opening up a much wider net.

This is especially great for those looking to invest but have limited time or simply those who would rather an expert take over the process.

Work with a reputable property sourcing agent:

You could unlock investment opportunities you wouldn’t otherwise find when you partner with a great property sourcing agent.

For those interested in learning more about the North West, Forth Action Invest offers unrivalled and all-inclusive services.

If you’re looking for deals below market value or a custom investment strategy, chat with the team here.

*Please note this blog does not constitute investment advice. We recommend you conduct your own due diligence before making any investment, including seeking independent financial advice.