How Developers and Investors Can Find New Properties Faster
As a property developer or investor it is vital to find new properties quickly. If you want to develop your business and build profits, you need a steady flow of properties coming through your portfolio.
And with new reports of demand outweighing supply, finding your next property fast is more important than ever before. Not only will you avoid bidding wars, but you’ll also get your renovated property back on the market in time to make the most of the price rises.
Our useful tips will help keep you ahead of the game.
Get to know estate agents
Many of the best properties are sold before they even appear on the market. Making the effort with local estate agents will gain you knowledge on properties hitting the market, as well as vendors who are looking for a quick or discreet sale.
Simple touches like remembering names and asking about family will help build the relationship. Weekdays are a good time to deal with estate agents, as they’re much less busy. Book a couple of back-to-back viewings on a Monday morning and you’ll have plenty of time to build up a rapport.
You can also make a good impression with your professionalism. Be polite, dress smartly, turn up to appointments on time, and ensure all correspondence is prompt and accurate.
Approach owners directly
If you’ve found an area that could be the next big thing, don’t just wait around for a property to come onto the market. Many owners intend to sell but don’t want the hassle, are unwilling to pay estate agent fees or simply haven’t got around to it yet - a gentle push from you could be all that’s needed to set the ball rolling.
Look for properties that are ripe for modernisation and contact the Land Registry Office to find out who owns them. You can then write them a letter or even just knock on the door to find out if they’re interested in selling.
It might only work for every one in twenty owners, but it’s worth it for that dream project.
Try an auction
Auctions condense the traditional buying process into a matter of minutes, so they’re great for property developers and investors. A winning bid is a binding agreement though, so make sure you’ve done your homework first, and don’t get caught up in the excitement of the auction room.
Request a catalogue from the auction house to see what’s due to come under the hammer. Be sure to view any properties you are interested in, and consult a solicitor or surveyor as necessary. You need to be sure you know what you’re buying.
Once you’ve found a property you’re happy with, it’s time to arrange your finances. You’ll need to pay 10% on the day, and the rest normally within 28 days. If you don’t have the full amount for the deposit to hand or the time to find the balance, we can quickly arrange a bridging loan for you.
On the day, be sure to remain cool and calm. Decide beforehand how much you are willing to pay and stick to it, and when you’re bidding be sure to signal clearly. Don’t worry if the property doesn’t meet its reserve; owners at auction generally want to sell quickly, and may agree to a lower price afterwards.
Use a property finderFor those short of time, a professional property finder is a powerful resource. Tell them exactly what you’re looking for and they’ll trawl the markets for you, some even coming up with risk analysis reports for each potential investment.
Many of these companies are regionally based, with excellent local knowledge. They will be able to tell you about schools, transport links, average prices and more – invaluable if you’re looking to expand into new areas. Their wide network of contacts will also help you get in on the best properties before they go on the market.
For some, however, property finders will take the thrill out of the buying process. Similarly, without your own instinctive touch you may miss out on some of the best bargains.
Buying your next property?
Whether it’s a fast deposit for an auction, or stepping in when a bank lets you down, Affirmative can help you finance your next property venture.
Keep reading our blog for more useful tips on property development, investment and finance.