Why Use a Property Finder?


 

Why Use a Property Finder?

Estate Agents work on behalf of the seller. No matter how nice they appear, they are being paid a big commission by the seller, not you – the buyer! That means their loyalties lie with the home owner and they will always try and achieve the best price and deal for them, not you.

In recent years Property Finders have become more common. They are paid by the buyer – you! Why should you want to do that, pay money for something you can do yourself?

Given a property is the most expensive purchase you will make, it seems strange that we know so little and rarely educate ourselves about this process. Property finders are invaluable in this sense. They can give impartial advice that you won’t always get from estate agents.

Property finders go one step further and hold your hand through the whole process, then do the ‘dirty’ work on your behalf. They will go through many of the steps necessary in house hunting – sorting your priority list, ensuring you are a serious buyer, getting you in position to buy, helping you find properties suited to you, negotiate price and terms on your behalf and connect you to other professionals who can help with financing, conveyancing, surveys, decoration or building work.

In a nutshell, a property finder will:

1. Manage the search process, speaking to agents, private sellers and searching property portals (some of which are not public).

2. Filter out properties so you only view those that would match your criteria. A good property finder will visit several properties that seem to fit your criteria, then whittle down to the best properties and only take you to see these. This will save you a huge amount of time.

3. Have quicker access to new properties agents are taking on and access to “off market” properties. Most property finders pay the estate agents a commission that ensures the agents contact them before a property is advertised on the open market.

4. Have “Inside knowledge.” This could be about the area, knowing specifics to avoid certain streets or buildings, or even about how to secure a property that will never be marketed.

5. Negotiating tactics and skills. They will handle all conversations on your behalf and advise on which approach is best. They are unemotional (unlike you) and experienced at negotiating, so they won’t fall for the “there are lots of interested buyers” trick.

6. In a competitive property market, they can get your offer taken more seriously.

When using a property finder, you pay a retainer fee: they only really cover their expenses by taking this fee, so they will be committed to finding you a home as the “finders fee” they receive is their real wage. That means they won’t waste your time, they will be working hard to get you a new home quickly.

A real advantage is when a Property Finder can take you to view a property before it is openly marketed because they have strong relations with Estate Agents who respect them. Estate Agents like property finders because as fellow professionals in property, neither has any interest in wasting the others time (for them it’s a job not a hobby).

Financially, a Property Finder can add value if they negotiate you a bigger discount on the asking price, because they understand the sellers motives or uncover information that an Estate Agent may not openly disclose to public buyers. In a competitive market it may well be they can secure you a home instead of another potential buyer, who may at first seem more attractive (like a Cash buyer). How? Well a good property finder will have you set up with a good mortgage, from a provider who approves your new home quickly, a conveyancing solicitor that acts Fast and a surveyor that is in and writing up his report within 24-48 hours.

Probably their best value is that property finders will visit properties before they take you along, assess if they are suitable, then give you clear honest advice, accompanying you on the viewing. This means they may only show you 25% of the properties they have viewed, which seemed most suitable. That saves time and focuses your search very quickly, rather than confusing you with unsuitable properties.

All is not What it Seems

This is a great example of a very good reason to use a Property Finder:

An Estate Agent was trying to convince a French client to view a flat in Kentish Town (the buyer said they were only after a house). This is an extreme conversation, but illustrates the point well.

Estate Agent to French Buyer: This Penthouse property we’re about to see is in a gentrifying area of London, close to a key transport hub, with a tremendous view and around the corner from the new French school. The floor plan is huge – as big as any terraced house in the area.

Property Finder to Foreign Buyer: This flat was built into roof space above another flat, so a lot of the walls are sloping, reducing the practical floor space by 20% [and so the valuation per square foot was inflated]. This part of Kentish Town is run down, but improving quickly. A railway line runs past the bedroom windows [not visible because they were frosted glass] and there are no children’s places available at the French school, in the age group of your children.

How much will I pay a Property Finder?

Property Finders charge a ‘retainer’ of a few hundred pounds to a few thousand pounds upfront. To ensure you are serious and not a time-waster, the upfront payment guarantees their attention and hard work. Once you buy a property through them they will charge between 1% and 2.5% of the property value. This follows the Estate Agent model – charging a percentage of sale price, so is widely accepted by buyers. Property Finders were the preserve of multi-million pound properties a few years ago, yet their services stretch all the way down to property budgets as small as £100,000 these days.

Market Comment

Zoa Arnel from Bristol Property Finders says property prices are on the increase in Bristol as well as other parts of the country. According to the Land Registry, the Government Agency which monitors the sale of houses, the average house in Bristol now costs £169,425 – an increase of 2.4 per cent over the last 12 months

Whilst this is good news for sellers, this is not so good for buyers. Buyers are finding that they are only able to view a property on a weekend due to work commitments and then finding that the property which looks perfect on paper, has been sold and taken off the market during the week because of the rising confidence in the housing market and a shortage of good properties.

Bristol is also a great city to buy property in if you are looking for a great Buy to Let investment with plenty of new-build flats and apartments that attract high rental yields but low maintenance costs.

If you would like to know more about property finding services or would like to discuss buying a property in Bristol, please contact Bristol Property Finders on 0117 8440008 or visit our website www.bristolpropertyfinders.com.


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