5 Steps To Successfully Working With Sourcing Agents
Property can be a high risk.. High reward game, However this should usually come down to a tangible deal rather than on the basis of working with certain professionals. Unfortunately like most industries, where large sums of money is being used , There are cowboys out there waiting to capitalise on the vulnerable.
Working with a property sourcing agent is no different than choosing your Builder , Estate Agent or Solicitor for that matter a certain level of Due diligence is required to make sure you are working with the right person.
Step 1 Choosing on price
There may be times you come across a property deal with what seems to be an outlandish fee attached , By all means consider options elsewhere or maybe negotiate a reasonable amount. However this is not what we are talking about. The old saying goes " Pay peanuts, Get Monkeys" Choosing to work with a sourcing agent on their fee amount alone will more than likely cost you more in the long run.
Step 2 The Wrong Speciality
Before agreeing to work with a sourcing agent, It would be wise to ask what area they specialise in. It may be the case that the agent has experience sourcing HMO's and Buy to lets, Great! But what if you are looking for Commercial conversions? its probably not a wise idea to appoint them. If you want Buy to lets find an agent who has experience packaging Buy to let properties.. Simple right? This also applies when choosing an area, If you are looking for property deals in Manchester, Find a sourcing agent who is based in Manchester or has successfully worked on deals there before.
Step 3 Communication
When working with a property sourcing agent its vital you communicate clearly your current circumstances and your goals. For example, saying you are looking for "Good deals" Is probably not going to get you anywhere anytime soon. Being specific about what type of deals you are looking for and exactly the type of returns you are targeting goes a long way.
Step 4 Doing your Due Diligence
If you are investing right, You will apply a good level of Due diligence on any potential deal you have. The same should apply when you are working with sourcing agents and any professional for that matter. Simple steps such as checking whether or not the person or company in question is fully complaint? Are they a member of the redress scheme? Do they have a registered website on companies house?
Step 5 Planning for the Worst
Okay, You have found a fully compliant sourcing agent who you would like to work with.
Now its important to find out their procedures in a worst case scenario. Say for instance.. The deal you have agreed to buy falls through due the vendor pulling out? Or one of their power team decides not to turn up? It is your job to outline these points very early on to avoid disappointment down the line.
In conclusion, There are many potential pitfalls when working with a property sourcing agent/Company as with any profession. Whatever your goals in property are do your homework and find an agent who is going to be competent in helping you achieve them.
Ensure you maintain regular contact with any sourcing agent and try and meet face to face if possible before agreeing to use their services. That being said, There are some excellent property sourcing companies around who will help accelerate your property journey quicker than if you were alone.