What is property sourcing, and how does it work?

If you have looked into property investment, you have probably seen the phrase "property sourcing" and wondered what it actually means. The short version: a sourcer finds and secures a property deal on your behalf, usually one that is not openly advertised. Here is what that involves, and how to tell a good arrangement from a poor one.

What property sourcing means

Sourcing is simply the work of finding the right property, negotiating the price, and getting it under offer, done for you rather than by you. A sourcer spends their time building relationships and looking at deals, so that when something suitable comes up you get the chance to buy it without having spent weeks searching yourself.

Some sourcers pass you a deal and step back at that point. Others, us included, also manage the purchase and any refurbishment through to completion, so you are not left to project-manage from a distance.

Why so much of it is off-market

The best opportunities rarely reach the portals. By the time a property is advertised on Rightmove or Zoopla, plenty of buyers have already seen it, and the room for a good deal has usually gone.

Off-market means a property that is not publicly listed. It comes from relationships: estate agents who call their best buyers first, auction houses, and vendors who would rather sell quietly. Building that network takes time, which is a large part of what a sourcer is really offering.

How the process usually works

1. You give a brief. Your budget, the areas you like, and the kind of property and return you are after.
2. The sourcer finds and negotiates. They work their network for suitable off-market deals, check the numbers, and negotiate the buy.
3. The purchase is managed through. Solicitors, any refurbishment, and completion, ideally overseen from start to finish.

The clearer your brief, the better the result, because a sourcer can only match deals to criteria they actually have.

What does property sourcing cost?

This is where honesty matters. Every arrangement is different: the budget, the area, how involved you want to be, and how the deal is best structured. For that reason, a fixed rate card usually does not tell the whole story, and any sourcer worth using should put the full numbers in front of you before you commit to anything, not a headline fee.

Be wary of anyone who quotes a blanket figure without understanding what you are trying to buy.

What to check before you use a sourcer

• Are they transparent about how they are paid, and when?
• Do they show you the real numbers on a deal, not just the upside?
• Will they manage the purchase, or hand you a deal and disappear?
• Are they buying for their own portfolio too, so their interests line up with yours?

At Stratus Property, deal flow comes from the same activity that feeds our own portfolio: we buy and hold property ourselves, which is why we would rather show you the full picture than sell you a brochure.

If you are weighing up a purchase and want to buy well without doing all the legwork, get in touch and tell us what you are trying to build.