Property sourcing fees: what should an investor understand before paying?
The important question is not only how much the fee is. It is what the fee buys, when it becomes payable, what the sourcer is required to deliver and what happens if the instruction does not produce a qualifying opportunity.
There is no single fee model
Property sourcing businesses may charge fixed fees, percentage-based fees, minimum fees or bespoke pricing for complex assignments. The commercial model matters less than whether the client can understand the exact amount, scope and basis before committing.
Ask what the fee actually covers
A sourcing fee should be read alongside the agreed service. Does it cover search, screening, viewings, analysis, negotiation support, reports or a defined number of qualifying opportunities? A fee is difficult to assess without knowing the deliverables attached to it.
Understand the difference between a quote and an eventual purchase price
If a fee is calculated from an agreed target budget, the documents should make clear whether it is fixed at instruction or changes if the eventual purchase price changes. The investor should not have to infer this after payment.
Check the search period and response obligations
Time matters in sourcing. Understand how long the instruction runs, how quickly the client is expected to respond to presented opportunities, and what happens if criteria or budget change during the search.
Read the refund and cancellation terms
Before paying, the investor should understand when a refund may be due, what happens if the sourcer cannot accept the instruction, and how any applicable cancellation arrangements operate. These details should be recorded in the relevant contractual documents rather than left to informal conversation.
Check VAT treatment
The documents should state whether VAT is included, added or not currently applicable to the business issuing the invoice. The total payable should be clear before payment.
Fee size should be judged against process and evidence
A lower fee is not automatically better value if the search is poorly defined, evidence is weak or unsuitable properties are routinely pushed toward the investor. A higher fee is not justified simply by branding. The useful comparison is fee against scope, process, transparency, evidence and commercial accountability.
FPB publishes its current sourcing fee framework and confirms the exact client-specific fee in the agreed instruction documents before payment.
View Property Sourcing →This guide is general educational information and does not replace the terms of any specific sourcing agreement.