PROPERTY FAQs & COMPLIANCE
deal sourcing - faq
1
What is property deal packaging?
Property deal packaging is a service offered by a property sourcing agent or company in which they search for property investment opportunities on behalf of their clients. They receive compensation for their time and effort in the form of a sourcing fee. Investors benefit from this by gaining access to the sourcer’s wealth of experience and network of contacts.
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Finding a property can be incredibly time consuming, requiring hours of research of an area, relationship building with vendors and estate agents and attending numerous viewings. Finding a potential investment property means finding relative comparables, putting forward offers, negotiating the price and then handle conveyancing until exchange of the property.
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Using a property sourcer is cost-effective in terms of freeing up investors time so they can apply their focus on other business activities without the distraction of actively looking for deals themselves.
This means investors can use their time and skill-set to create more value in their business activities, which in turn can generate more income for their property business. This allows investors to buy more property without sacrificing valuable time and ultimately accelerate the growth of their property portfolio.
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Because property sourcers spend a lot of their time building their network and generating valuable leads through different strategies, they have the ability to find the best deals that aren’t immediately obvious or accessible to mainstream investors. They have the right connections and have built a strong rapport with them, from estate and letting agents to property managers. Because of these strong working relationships, closing satisfactory deals is much easier for them than it would be for someone who’s new to the landscape.
2
Are you compliant?
Yes, we are fully compliant and have a dedicated client account. We are proud members of the UKALA Client Money Protection, we are registered with HMRC (XL006927320742), ICO (ZB312908), Property Redress Scheme (PRS031759) and have Professional Indemnity Insurance (318578/95007).
When sourcing property on behalf of an investor for a fee you need to be able to demonstrate compliance with all the relevant legislation, from registering with HMRC under anti-money laundering regulations to having the right insurances in place.
It costs approx £1,500 for a company or sourcing agent to register with all applicable agencies and authorities.
3
What are your fees?
Our fees vary depending on the property and service you require. Please ask us about our fee in relation to specific properties.
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4
Why do I have to Pay a holding Deposit to put my offer forward?
The deposit ensures the investor is serious. If we were to put offers forward and secure the deal with the landlord then the investor decides not to proceed, we lose credibility with the landlord. The deposit shows interest and secures the property whilst negotiations are under way.
5
Are you direct to landlord or through an agency?
We have properties that are direct to landlord and others that are co-sourced or offered to us by agents. Whatever the structure of the deal, we guide you through it until completion.
6
Can I view the property before paying the finder’s fee deposit?
We appreciate this is a big commitment from you. However, as a reputable and compliant sourcing company, we have assessed the property fully and we are very confident in the deal. We offer a full money back guarantee within 14 days, if you go to view the property and find it is not as we have described.
7
Can I get a refund if the deal falls through or if I change my mind?
If your offer is rejected or a mutual agreement cannot be met, then you are entitled to a full refund. If however your offer is accepted but you decide not to proceed, you will lose your deposit.
8
What do investors look for when buying a house?
The primary reason why many investors invest in an HMO or single-tenanted rental property is to generate profits from their initial stake. They want to be assured (as far as possible) that the rent or cash inflow will be greater than the cash outflows, which include any mortgage, taxes, insurance, repairs and maintenance costs, and so on.
9
Do you offer management?
We offer management for HMOs and SA's, either directly or we will sign post to other to reputable business in our network.
selling - faq
1
how long is the offer valid for?
Our offer is valid for 28 days (subject to contract). Once 28 days has expired, we may have to carry out further due diligence regarding the local property market at which time we will confirm if our offer remains the same. It is unlikely the offer will change unless there has been some major movement in property prices in your local area.
2
Is the process confidential?
Yes, rest assured the whole process is fully confidential. Working with Moorhouse Property Services Ltd removes the hassle of continuous viewings and you will be pleased to know that there will be no estate agents board outside your property. We understand that it's important for most home owner to keep the sale is private however please note that by law, certain facts about the sale remain in the public domain, such as sale price and the date of completion.
3
How long does it take?
We are able to make an offer on your property within 48 hours and as we work with property investors across the UK and oversees we which means that typically, if Moorhouse Property Services chose not to buy your property directly we find an investor to buy your property within 2 weeks. However, the entire process up to exchange can be as quick as 30 days from this point, although this can be delayed should any legal problems be highlighted. Also, this timing relies on you responding speedily to your lawyers with any answers to questions or documents they may request. We are happy to discuss your needs, whether that is for a quicker or a slightly slower sale, and to work to your timescale.
4
Does my property need to be in good condition?
No. We make offers on all properties, whatever condition they are in. however, you should describe the condition of the property to us accurately when requesting an offer, so that we can take this into account and so give you an accurate offer the first time.
5
How do you calculate the value of my home?
During our first phone call, we’ll give you an initial offer – along with the details you give us, we use data from Land Registry, RightMove, and other third party sources to come to this valuation. If you are interested in progressing at that stage, we then send round a RICS qualified surveyors/ valuers (following strict health and safety guidance) to complete the valuation process. We would then take the average of these valuations to determine the true market value of the property and base our final cash offer on this figure.
6
Does it matter if I am in mortgage arrears or if my house is about to be repossessed?
No. We can review your options and agree on a strategy that best suits you, your situation and timelines. The benefit of using our service is that we genuinely want to help our clients to avoid house repossession by stepping in and purchasing their property quickly. This purchase may be made by Moorhouse Property Services directly OR or we find a cash buyer from our database of property investors.
7
Will my tenants find out that I am selling my house?
Our property buying service is confidential and discreet, with no tenant contact necessary. There are no viewings or ‘for sale’ boards. We would prefer to visit the property for an inspection, however our friendly surveyors will not disclose the purpose of the inspection.
8
Will you buy empty property too?
Yes certainly, we invest in any type of residential property throughout England. Submit your details today and we will make you an instant, no obligation offer.
9
What do you mean when you say discount to market value?
If you look at the value of a house being shown on an estate agent’s website, the price you will see a property being advertised at will usually be well in excess of what the property is really worth in the market. By the time the property is sold, the owners may have waited many months to find a buyer prepared to come near to that price, and even then the sale will probably proceed at a price significantly lower than the price advertised.
Agents often inflate prices by claiming to be able to sell for a higher price, in order to secure the chance to sell the property against competition from other local agents. Agents may also price high simply to leave themselves room to negotiate a discount.
Moorhouse Property Services calculate the true market value of your property using actual data of comparable sales achieved recently, and other valuation techniques.
10
Do I have to accept your offer?
There is no obligation or pressure to proceed. We completely understand that property is a significant asset and therefore you may need some time to decide.
11
I'd like you to make an offer what do I do next?
Simply fill in our online form or pick up the phone and give us a call on 0238 202 9008 to discuss your property.
