Jump to content
House Price Crash Forum
Leodhasach

Hips To Cause Hpi Through 30% Fall In Vendors

Recommended Posts

Hmm. According to this story, a group of 500 or so EA and surveyors think that "estimates the introduction of the packs will lead to a 30% reduction in the number of properties put up for sale each year as sellers are deterred by the £700 to £1,000 cost of assembling them. It also warned this reduction in supply could cause massive house price inflation."

Leaving aside the highly suspicious nature of EAs warning against HPI, does it actually make sense? Most people who aren't going to sell because of HIPs are probably owner-occupiers - so they're not going to be buying either, hence no net change in supply/demand ratio?? :unsure:

Share this post


Link to post
Share on other sites

.....and here could be a massive oversupply of housing coming onto the market prior to the packs coming out causing a massive slump!

I received a marketing leaflet posted by an estate agent last week, urging sellers to put their property on the market before HIPs come into force! Could the agents inadvertently engineer the crash with their warped spin? :lol:

Share this post


Link to post
Share on other sites

I must say, I'm not actually a fan of the often touted accusation that there is VI spin in figures and reports. But with this, I really smell a rat. What are they saying? HPI is going to be massive because of people being deterred from spending 1000 quid? So once this hypothetical HPI puts a couple of thousand on the price, then that is taken care of, surely? What a load of tosh. I can't see any sense in their reasoning at all, and it just smacks of an excuse to put a story about HPI out, to keep spirits up.

Further, in my experience when one buys a house, 1000 pounds is neither here nor there. There is so much cost involved in the whole dreadful process, that if you are worried about the odd 1000 quid to the point that it makes you switch from going ahead to stopping, then you're probably better off out of the game anyway.

ARE THEY REALLY CLAIMING THAT 30% OF POTENTIAL SELLERS ARE ONLY 1000 POUNDS AWAY FROM NOT BEING ABLE TO AFFORD WHAT THEY PLAN TO DO? COME ON, PULL THE OTHER ONE!!!!!

Edited by Levy process

Share this post


Link to post
Share on other sites

Its b0ll0x they get their pack and the house they buy has paid for their own pack, nothing has changed, except another government board has been set up to implement, set figures for and monitor the whole thing.

Share this post


Link to post
Share on other sites

I suspect HIPs will mainly remove the "Lets stick it on the market at top whack and see if it sells" type of vendor. After all, providing they go with an EA that has a 'No sale - No Fee' policy they suffer no financial penalty at present. Move the clock on 18 months and all that will change with the introduction of HIPs. These vendors, who tend to be the ones advertising at what often appear to be unrealistic prices, will by and large disappear. The vendors left in the market ought to be enthusiastic, genuine and motivated sellers. At the end of the day removing the 'fluff' from the market ought to make it more efficient but whether that's reflected in an increase or decrease in HPI is, to my mind, anyones guess.

Share this post


Link to post
Share on other sites

I suspect HIPs will mainly remove the "Lets stick it on the market at top whack and see if it sells" type of vendor. After all, providing they go with an EA that has a 'No sale - No Fee' policy they suffer no financial penalty at present. Move the clock on 18 months and all that will change with the introduction of HIPs. These vendors, who tend to be the ones advertising at what often appear to be unrealistic prices, will by and large disappear. The vendors left in the market ought to be enthusiastic, genuine and motivated sellers. At the end of the day removing the 'fluff' from the market ought to make it more efficient but whether that's reflected in an increase or decrease in HPI is, to my mind, anyones guess.

Nail on head. Unrealistic vendors (such as my next door neighbour - house on market for 18 months) will need to price at realistic levels or face paying again for an up to date pack.

Its a bit like trying to sell a car with a six month MOT at too high a price. Six months later you will have to MOT it again.

I think it will sort out the speculative idiots .

Share this post


Link to post
Share on other sites

on the other hand HIPS will result in more completed sales, because vendors will have to pay for the survey. To ensure a sale they wont be tempted to put there property on at a higher price and leave it there before taking it off the market....

Share this post


Link to post
Share on other sites

Agree. There is a tendancy to just "test the market". When we bought our house there were 4 houses for sale in the road and we offered on each one in turn, quite near to asking price. In turn, each one was removed from the market. Then put on later at a higher price.

Share this post


Link to post
Share on other sites

With HIPS you should be able to get a good feel for the quality/condition of a proeprty straight from an email, no agent, no hassle. The vendor will be able to market direct by simply putting a listing up and having th HIP available for download, thus recouping far more than the cost of the HIP.

No wonder they don't want HIPS.

Share this post


Link to post
Share on other sites

The more information you have on a market and the less barriers to entry and exit, the more perfect the market becomes...

The question is, is the a new barrier, or removing an existing barrier?

Share this post


Link to post
Share on other sites

Wouldn't the packs be good news for Estate Agents, precisely because it stops people "testing the market" and wasting both the EA's and the vendor's time?

Only committed sellers need apply...

Share this post


Link to post
Share on other sites

DTMark,

See above post, who the hell wants to be dragged round by agents from one property to another when you don't have to. I'd love to see the number of property fall-throughs where currently the agent doesn't divulge that nasty little bit of information that becomes a show-stopper AFTER all the searches/survey have been done, or indeed the number of people who still proceed to completion becuase they don;t want to wave goodbye to the money they have already spent (or don't have any other money to spend for another set of searches/fees).

Share this post


Link to post
Share on other sites

Its a load of crap imho.

I DO agree that there would be potentially 30% less sellers. All's this means is the ones who are selling are SERIOUS about selling. I believe there is a good 30% of houses on the market now with speculative prices because they know its the top of the market. If they cant get the ceiling then they dont sell - they have nothing to lose?

As far as supply and demand? Well I'm sorry this wil not cause higher prices, it means that all the ones left who are serious about selling will have to make their house stand-out amongst the rest. This will also mean that they will ahve to be competetively priced.

EA's saying anything at all indicates they are worried.

TB

Share this post


Link to post
Share on other sites

So it's entirely reasonable to expect first time buyers to drop themselves into a £180k debt and to Stop Trying to be Clever and buy, however £600 on the other foot will totally bankrupt the market?

If the market is as strong as they say then the costs will be passed on, I can't see how they're concerned about buyers not being able to afford £600 if they think six figure sums are entirely reasonable and normal. £600 was just one weeks worth of HPI until recently.

They know what's coming, they will use anything as an excuse to off load the blame once things hit the fan.

Edited by BuyingBear

Share this post


Link to post
Share on other sites

With HIPS you should be able to get a good feel for the quality/condition of a proeprty straight from an email, no agent, no hassle. The vendor will be able to market direct by simply putting a listing up and having th HIP available for download, thus recouping far more than the cost of the HIP.

No wonder they don't want HIPS.

They'll never be able to reconcile their well apointed, much sought after marketing bumph sat along side a report that actually reveals the property is a pile of poop. At the moment agents get away with murder based on a false naivety and 'buyer beware' philosophy, like those who bid off the wall it's your fault if you fall for it. With HIPS they can't act so dumb, they wont be needed at all, combine the pack with a property website and you can get to the facts yourself without having to try and extract information from some double-dealing agent, unless the agent reads every HIPS in depth then you may end up knowing more about the property.

OnlyMe is spot on, their worst fear is that people will realise that agents are entirely superfluous and don't actually add any value.

Edited by BuyingBear

Share this post


Link to post
Share on other sites
Guest

This won't affect the crash because we needed forced sellers for that anyway.

I expect this will deter "test the water" sellers, but then they'd be the ones who are likely to chase a crash all the way to the bottom anyway, thus never participating in setting a market price. Better off out.

Share this post


Link to post
Share on other sites

Wouldn't the packs be good news for Estate Agents, precisely because it stops people "testing the market" and wasting both the EA's and the vendor's time?

Agent's actually don't mind these kite flyers, it fills their windows and pages and they act as useful stooges by making neighbouring property 'appear' cheap and affordable. Not to mention in a speculative market there is a very real chance they'll find a buyer if prices catch up, then the agent potentially has another element in a chain.

Share this post


Link to post
Share on other sites

As a house seller once you've paid you £700 plus and got your HIP, how long is it valid for?

HD

Looks like I have my own answer here: http://www.odpm.gov.uk/index.asp?id=1161342

How long will a Home Information Pack be valid?

The packs cannot be more than 3 months old when a property is placed on the market. However, once a property is marketed, the Home Information Pack will remain current throughout the sale process.

It will be for sellers to decide whether they want to update their packs and if they do, providers are expected to offer this service at a nominal cost.

Response to Daily Express article on 30 November 2005.

So home owners can use their HIP as long as they want!

Edited by HouseDog

Share this post


Link to post
Share on other sites

I suspect there will be a real glut of properties put on the market before the introduction with buyers lowering their prices to sell before introduction.

The only problem I see is having to pay this cost before putting their house up for sale. Most people can afford the cost after the sale but I remeber a recent survey that said if people had to pay for the breakdown of their fridge etc most would not be able to afford.

You may see the EA carry it as part of their fees with it written into the contract making people stay with the same EA which may stop the switching of EA's.

Share this post


Link to post
Share on other sites

I suspect there will be a real glut of properties put on the market before the introduction with buyers lowering their prices to sell before introduction.

The only problem I see is having to pay this cost before putting their house up for sale. Most people can afford the cost after the sale but I remeber a recent survey that said if people had to pay for the breakdown of their fridge etc most would not be able to afford.

You may see the EA carry it as part of their fees with it written into the contract making people stay with the same EA which may stop the switching of EA's.

These guys offer 'buy now - pay later' HIPs service

http://www.mysalepack.com/ It is unique because it gives vendors the option at no extra cost to 'buy now pay later' - either in six months or once they have sold their home, whichever is earliest.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.