How We Get Paid: One Fixed Fee, No Commissions

I’m paid by the buyer, and only by the buyer. One fixed fee, quoted on the first call, agreed in writing before any work starts, and paid in three stages: 10% on instruction, 40% at memorandum of sale, 50% on completion. I take no commission, referral payment or spread from sellers, estate agents, developers, brokers or solicitors.

If you arrived at this page expecting a subscription or a monthly retainer, I don’t run one. The fee model below is what I actually charge.

The three payments, and what each one buys

10% on instruction. You sign the agreement, I run the anti-money laundering checks, we agree your written buying criteria, and the search begins. This is the smallest payment on purpose. It filters out browsers and funds the work that happens before there’s anything to show you.

40% at memorandum of sale. A property you chose has been agreed at a price you accepted, and solicitors are being instructed. Nothing is due at this stage unless you have said yes to a specific property at a specific number.

50% on completion. The purchase completes and you have the keys. The single largest share of my fee sits at the very end, where the only way to earn it is to finish.

Nine tenths of the fee depends on me delivering a property you agreed to buy. That’s the point of staging it this way.

Why I don’t take a percentage

A sourcing fee calculated as a percentage of the purchase price pays the sourcer more when you pay more. Every pound negotiated off the price cuts their own income. It’s a small conflict on paper and a very expensive one in practice, because the negotiation is where the money is made.

A fixed fee removes it. I’m paid the same whether you pay the asking price or £35,000 under it, so there’s no quiet reason to stop pushing. 23 Beech Grove was first listed at £125,000 and my client paid £90,000. My fee was identical either way.

Why I take nothing from the seller

A large part of the sourcing industry is paid by the person selling, or by the agent acting for them, or by a developer with unsold stock. Sometimes both sides. If a sourcer is paid by the seller, the seller is their client, whatever the marketing says, and you’re the stock being moved.

I take nothing from that side of the table. There’s nobody behind me paying me to leave your money on it. That’s the entire reason the negotiation works in your favour, and it’s worth asking every sourcer you speak to, in writing.

Why the figure isn’t on this page

The fee depends on the type of purchase. A refurbishment project takes considerably more work than a standard buy-to-let and is priced higher. Rather than publish a number that’s wrong for half the people reading it, I quote your figure on the first call and put it in writing before anything starts. It doesn’t move afterwards.

You can see the full model, including what is and isn’t covered, on what it costs.

If the purchase falls through

The search restarts and there’s no second fee. This isn’t a hypothetical clause. Not every deal completes: nothing is binding in England until exchange, so a vendor can pull out or a survey can turn something up, and it has happened to deals I sourced. I say so because a sourcer claiming a perfect record is either new or not telling you everything.

What the fee doesn’t cover

The fee buys my work. It doesn’t buy other people’s. You pay separately for:

• Solicitor and conveyancing fees
• Searches and any survey you commission
• Mortgage broker and lender fees, if you’re borrowing
• Stamp duty land tax, which goes to HMRC and depends on your circumstances
• Refurbishment materials and labour, which are paid to the trades doing the work
• Ongoing letting or management fees, once the property is let

I’ll tell you what these are likely to cost before you commit, but they aren’t mine to take a slice of, and I don’t.

What you should ask anyone else

Take these questions to every sourcer you speak to and get the answers in writing:

1. Who pays you, and does anyone else pay you anything on this transaction?
2. Is your fee fixed, or a percentage of what I pay for the property?
3. When is each part of the fee due, and what do I receive for each stage?
4. What happens to my money if the purchase falls through?
5. Are you supervised by HMRC for anti-money laundering, and what is your registration?
6. Which redress scheme are you a member of?
7. Do you hold professional indemnity insurance, and for how much?

Our answers to the last three are on our compliance page, with the registrations shown.

What to do next

Read what it costs for the full model and how it works for what the fee actually buys, then look at the case studies to see the numbers on completed purchases. If the model suits you, tell me what you’re trying to do and I’ll quote your fee on the first call.

For a wider view of how to judge who you’re dealing with, read how to choose a property investment advisor and why we focus on security not sales.