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How much it cost to source a property?

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Hi Hubers,

Sourcing a property deal from from a "sourcerer"! Great but how much it cost?

  1. What is the good price and what is the bad price that we pay for sourcing the property?
  2. Sourcing a property as a percentage (e.g. 5%/10%) of the property value or potential profit percentage or maybe fixed price (e.g. £3000)?
  3. I believe it strongly depends on a location, how would the comparison of e.g. London to Leeds look like?
  4. Where to find a "sourcerer", where they hide?

I'm thinking about finding a source for my future deals and I would like to built a baseline, improve the knowledge about it before I actually sign a deal with someone!

Thanks! All answers are highly appreciated

 

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This is something I would really be interested in knowing 

I'm looking to invest and I'm find it hard to find high yield deals with the limited time I hahe with my current business 

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Hi folks,

Common figures seem to be £2k up to £5k but it really depends on how much the sourcer does. Goliath Sourcing Academy cover this in a good podcast episode 27, you might be interested in checking it out.

 

Hope this helps,

David.

Edited by T J
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Hey guys! 

I have used 2 property sourcers before, one charged just under £5000 and did absolutely everything from finding the deal, and working with brokers/solicitors etc. The other one simply gave me the deal and was around £2500. Hope that helps.

Cheers

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Alex and David

Thank you for your comments. I have been speaking to freinds who have their own Estate Agents and will hopefully be purchasing an investment through my company soon

Hope you both have a good weekend 

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Hi!

You've already received some really great responses to your question - but there may be one other thing to consider when deciding if a sourcing fee is worth it. Most reputable sourcing companies charge a fee, but they also achieve you a genuine discount off market value. If the discount is far greater than their fee, then you're still better off - even if their fee is at the more expensive end of the spectrum.

I hope that's helpful!

 


Rachel Watts
Portfolio Manager

https://propertyhub.net/service/invest/

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