However, the majority of investors do not wish to
pay the full asking price and so often fall foul
of their local Agent by making very low offers which
are rejected because the seller wants as much as
they can for it i.e. they are not motivated sellers.
LEAD
PROVIDERS or Sourcing Companies are different from
Estate Agents in that they act on behalf of the
purchaser.
They
provide detailed information on motivated sellers
who are often willing to accept a below market value
offer on their property in order to alleviate their
situation and achieve a sale.
How
it works
-
Information is submitted to a Sourcing Company
by a prospective vendor, detailing name, address,
market value, circumstances, timeframe for sale,
if they will or will not accept BMV offer, if
so how much BMV.
- Often
these prospective motivated sellers are contacted
and the information given is verified over the
telephone. This then would be a qualified lead
and so cost more.
-
If the vendor is visited and agreements are
met and signed, these deals will probably end
up as packaged READY
MADE DEALS i.e. price agreed, solicitors
decided, broker advised (see separate page for
Companies that specialise in these types of
deals)
Many
LEAD PROVIDERS will offer leads
for sale at a low prices. These are general enquiries
from prospective vendors but no further contact
has been made. It will be up to you to pick up the
telephone to make first contact with the vendor
who has probably sent their information to several
Companies and may not even be sincere, negotiate
the deal, complete the paperwork, put your POWER
TEAM in place and self manage the whole
process.
Qualified leads are often more expensive
but many consider it is worth paying the extra money
for. The vendor’s situation is clear and ballpark
figures have been discussed but not agreed, most
importantly, it has been ascertained that the vendor
wants to sell, do it quickly and will accept less
money than the property is worth.
Before
buying any lead, make sure you are happy about the
provider’s terms and conditions. Usually a
full refund will be provided where unqualified leads
cannot be contacted, but always check the terms
before buying.
You are often able to register with a LEAD
PROVIDER (either free or with a membership
fee) and so receive notifications via email or phone
of the new leads available. Many Companies will
also source to order and will locate properties
in your chosen area and give you first choice before
the lead goes on general release.
For
the Investor, LEAD PROVIDERS sell quality red hot
leads from genuinely motivated sellers and are extremely
useful in helping to build your portfolio.
