03-12-07, UpMyStreet ©
From December 14, all properties sold in England and Wales will require a Home Information Pack, making a HIP another cost to factor in when selling your property.
Most will turn to a professional to produce a HIP but they can also be compiled by individuals, as covered in our article on DIY HIPs. Here we examine the pros and cons of using a professional.
Pros of using a professional
1. No hassle
HIPs are available at nearly every step of the selling process - through your estate agent, mortgage broker and solicitor, or direct from a HIP provider - and using a professional service reduces the time and effort involved in obtaining a pack.
Your chosen provider will arrange for an accredited energy inspector to view your property, will organise the legal documents and will contact your local council about searches on your property. This leaves you time to focus on the other tasks involved in completing your sale.
2. Avoid legal complications
Having a professional complete the pack for you will remove the risk of potential mistakes that could spell legal trouble. According to Dominic Toller of HIP providers LMS:
"The legislation surrounding Home Information Packs is complex and has been altered frequently since HIPs were conceived. This means that from the outset, consumers attempting to compile a HIP themselves may find they have trouble both understanding and keeping up with the intricacies of the regulation and what is needed within the pack."
3. Bag an all-in-one bargain
The HIP market is new and competitive, and you should find a good value deal by shopping around between suppliers, particularly if you purchase a pack as part of an all-in-one package with an estate agent or conveyancer. This, according to Dominic, could get you a HIP for a cut price of £249 plus VAT.
You can also defer payment until your sale is complete, unlike compiling your own, when you have to pay all the costs upfront.
Cons of using a professional
1. New agent, new HIP
On the downside, if your HIP is compiled by a third party, they effectively own the HIP. This can create real problems should you decide to change estate agents, mortgage providers or coveyancers during the selling process, and you may have to fork out for a new pack.
2. Misleading 'freebies'
Estate agents and other property professionals may offer to prepare a free HIP for properties they sell. This does not always mean that the HIP is actually free. If you opt in, the cost of the HIP is likely to be added on top of the estate agent or other fee - check the small print for an actual breakdown of costs.
3. Little time saved
There is an unavoidable time delay between booking a professional to complete your HIP to receiving the finished product. The latest official statistics claim a seven to 10 day turnaround.
If you're organised, producing your own HIP shouldn't take any longer, but Dominic points out that "the various elements of the HIP can take a long time to obtain, particularly the local search components."
Doing it yourself
If you have a bit more time, compiling your own HIP is an easy way to save up to £100 - read our step-by-step guide to DIY HIPs. Some estate agents might not accept independently compiled packs, so check with an agent before you embark.
More about HIPs
› Extended to three-bedroom homes
› Energy performance certificates
Using a specialised HIP provider can save sellers time, money and a great deal of hassle by providing a complete HIP quickly and efficiently.
Dominic Toller, HIP providers LMS
Plan ahead...
- HIPs take an average of seven to 10 days to prepare
- The majority of property and drainage and water searches are delivered within 5 days
- EPCs are prepared within an average of two to four days
- The average cost of a pack is £300 to £350
Source: DCLG, November 2007
Inside a HIP
Terms of sale: a description of the property and why it is being sold
Title deeds
Replies to standard preliminary enquiries made on behalf of buyers
- Details of planning permission granted for building work
Details of approval to build or change a listed building
Copies of warranties and guarantees for new-build properties
Commonhold information, including commonhold community statement or New Homes Warranty
Energy Perforfmance Certificate: a rating and five-page report of your home's energy efficiency
Home condition report: voluntary as of July 2006
Bic (Christchurch), on 12/02/2008 at 14:26
I work for an estate agents and have ordered many HIPs since introduction last year and to date not one potential buyer has asked to see either a HIP or an EPC! Another stealth tax.....
Veronica (South Bedfordshire), on 29/01/2008 at 15:12
It's about time! As an estate agent, I think an HIP is the best thing since sliced bread. It protects both the buyer and seller and prevents unnecesary costs/holdups/conflicts down the road. Dealing with issues up front keeps the transaction transparent, to the benefit of all parties. Who can argue with that? HIPs might even help improve the general less-than-savoury reputation of estate agents.
Marie (Colchester), on 29/01/2008 at 13:16
HIPS ARE DISMAYING TO PEOPLE SUCH AS MYSELF (A PENSIONER) WHO NEED TO MOVE BUT FIND THAT THEIR PRECIOUS CAPITAL INVESTMENT IS DWINDLING, AS PROPERTY PRICES FALL.
Jason (Havant), on 05/12/2007 at 11:01
Jason (Havant), on 04/12/2007 at 17:53
Really, what is the problem with HIPs? Other than the Energy Performance Certificate which is required as part of the effort to reduce carbon emissions there is nothing new.
Everything ordered from the Drainage Report to the Local Authority Search would have been ordered by the conveyancer after the sale was agreed. This way the buyer has everything up front and is better informed before they choose to put their offer in or not. It should cut down on last minute surprises that make people try to negotiate on an agreed price and sometimes cause sales to fall through.
The cost is transferred to the seller rather than the buyer but in a chain this cancels out any extra cost except for the first time buyer. Anyway in a quarter of a million pounds (about the average price of a house) is an extra two hundred and fifty quid that much of an expense?
I'll tell you who loses out: Greedy solicitors and brokers who want to rip people off by doing a dodgy deal. Funnily enough these are the most vocal opponents of HIPS.
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Phil C (Rugby), on 04/12/2007 at 17:02
I'm not surprised the Professional HIP companies are claiming the process is 'so complex'. That's the justification for the huge prices they charge. I think the easiest thing to do is stay put. No estate agents or Solicitors to pay for doing next to nothing, no 3-4% +VAT Stamp Duty to Gordon and no payments to the next level of vultures that have sprung up after the introduction of the HIP. If everybody does the same the government will freak at losing all that revenue, and would have to get rid of this stupid meddling.
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