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Relative Reluctant To Sell

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Had a conversation with one of my relative's who is presently rattling around alone in a huge 5 bedroom house, that he is struggling to afford. He was showing me all the changes/decoration he had recently done to the place and I commented that "It looks like someone's thinking about selling their house?". He said that he was reluctant as he didn't want to pay for a HIPs pack (he thought they were coming in this summer), I told him that some EA's may pay for it and get the money back on completion. But more interestingly, his biggest concern was having to declare all the defects in the house. I reminded him that vendors who don't declare known defects are likely to loose a sale further down the line anyway, and buyers are expected to pay for all of this now, sometimes several times over (he didn't seem to care).

My question is, how do you think HIPs will effect the attitude of the vendors in general? How will it effect the market if initially at least, vendors are reluctant to put their homes on the market?

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I presume that it will remove the time-wasters who stick their house on at the local EA with a price way above what anyone will pay. In theory that reduces supply, but in reality it shouldn't matter as no-one was going to buy that house anyway.

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Some people have been trying to scare the government into stopping HIPs by making people think they are a bad thing (our friend Kirsty). If I were a surveyor I would be doing everything I could to stop or delay them. At the moment, houses seem to be surveyed by different buyers 2-3 times before eventually being sold. With HIPs they will be surveyed once. Half the work for surveyors means half the number of surveyors requried.

Owners trying to sell should be told that where they have been trialled, sales have been 80 - 90% successful after an offer is made, rather than the 50% (guess) where HIPs are not provided.

For people moving on to another house, they will be buyers as well as sellers and will have the advantages of seeing the problems with the house they are looking to buy before placing an offer.

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I agree that timewasters will be put off, which is always a good thing.

However, in my relative's case, he can't afford his house, he's recently divorced and bought his ex-wife out. The mortgage is more than half his take home pay, it won't be long before he's forced to sell or starts missing mortgage repayments. Yet still he's reluctant to sell because of HIPs!?!

My hopes for HIPs are that they will (eventually) change the attitude of vendors, my uncle clearly thinks he is right to expect the buyer to pay for his DIY disasters, lack of financial planning and marriage breakdown and has no quarms about 'not telling' the buyer about certain defects until they have paid for surveys, etc. It will be in the vendors interests to be honest as the buyer can quite literally walk away from the place at anytime pre-contracts being signed with no or little money lost.

I also wonder if the HIP will have an "valid to date"? wouldn't this pursuade the vendor to lower the price towards the this expiry date or risk having to pay for another LA search/take the house off the market?

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my uncle clearly thinks he is right to expect the buyer to pay for his DIY disasters, lack of financial planning and marriage breakdown and has no quarms about 'not telling' the buyer about certain defects until they have paid for surveys, etc.

And that's the real problem: sellers expect buyers to pay over the odds for crap. Why should a buyer have to pay for the seller's lies?

I also wonder if the HIP will have an "valid to date"?

There was a thread about this a couple of months ago: I think it was a year, but I'm not certain of that.

Edited by MarkG

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There is a rumour that the HIP's could become voluntary:

In which case, if you don't have one then buyers will assume you're trying to hide something.

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Guest consa

In which case, if you don't have one then buyers will assume you're trying to hide something.

This is true, but what about new properties or one's say 1 year old, would they need them?

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And that's the real problem: sellers expect buyers to pay over the odds for crap. Why should a buyer have to pay for the seller's lies?

I'm hoping this will change with HIPs, I can't see how it will remain how it is with this new level of transparency.

I also think HIPs will be the undoing of Kirsty, she knows that buyers are in favour of HIPs (appart from the ones shes convinced otherwise), and her take on there not being enough surveyors is clearly flawed as less surveys will need to be carried out (same with LA searches etc). What she fails to mention is that it will make selling house more difficult (which in effect is what she does even if she work for the buyer) and her comission will be less if it causes a HPC (a lot less).

There was a thread about this a couple of months ago: I think it was a year, but I'm not certain of that.

Where I live there would be about 40-50% for vendors re-applying for their HIPs pack.

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I agree that timewasters will be put off, which is always a good thing.

However, in my relative's case, he can't afford his house, he's recently divorced and bought his ex-wife out. The mortgage is more than half his take home pay, it won't be long before he's forced to sell or starts missing mortgage repayments. Yet still he's reluctant to sell because of HIPs!?!

My hopes for HIPs are that they will (eventually) change the attitude of vendors, my uncle clearly thinks he is right to expect the buyer to pay for his DIY disasters, lack of financial planning and marriage breakdown and has no quarms about 'not telling' the buyer about certain defects until they have paid for surveys, etc. It will be in the vendors interests to be honest as the buyer can quite literally walk away from the place at anytime pre-contracts being signed with no or little money lost.

I also wonder if the HIP will have an "valid to date"? wouldn't this pursuade the vendor to lower the price towards the this expiry date or risk having to pay for another LA search/take the house off the market?

I know somebody buying, went into sign contracts today, for completing next Friday on a two bed house. Turns out a garage extension planning was granted, but a kitchen extension was also been built at the back of the garage. Not only that vendors solicitor has not provided Building Regs Certificate. Also it turns out original Developer extension not sought. Also no verification central heating boiler was installed by a Corgi registered installer in the new extension. Cash buyer has give rental notice which expires next Saturday, removal firm book for Saturday.

All this would have been avodied with a HIPS pack.

If things don't pull together for a Friday exchange and completion, the buyer is walking away and will only agree to completing if and when certification or insurance arranged at the vendors expense regards possible planning refusal and or non compliance regards building regs [owner is a builder so buyer knows build work is satisfactory, as it was checked out by a builder friend] They are however willing to accept and completion taking place within one month of agreed lapsed completion date but at a reduction of 1K in the agreed sale price regards buyers incurred rental and removal expenses, or they are walking. Vendors new abode a resale 5 bed semi has a SSTC sign on it :ph34r:

Vendors conveyancer quote "do the want to buy the house or not" ..........typical cut price convayancing

tosser attitude...I suspect you would not get a mortgage funds release without proper certification

Edited by Catch22

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Guest consa

I know somebody buying, went into sign contracts today, for completing next Friday on a two bed house. Turns out a garage extension planning was granted, but a kitchen extension was also been built at the back of the garage.

I suspect the garage is a single skin wall and therefore the kitchen extension is probably the same unless an internal skin has been inserted, or stud partition as internal skin. although the construction may be good etc... the chances are that it will fail building regulations due to lack of floor/wall/ceiling insulation meeting the reqirements.

If no Building regs completion has been undertaken they will need a regularisation certificate which would require plans being submitted.

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I suspect the garage is a single skin wall and therefore the kitchen extension is probably the same unless an internal skin has been inserted, or stud partition as internal skin. although the construction may be good etc... the chances are that it will fail building regulations due to lack of floor/wall/ceiling insulation meeting the reqirements.

If no Building regs completion has been undertaken they will need a regularisation certificate which would require plans being submitted.

Consa,

I'll pass your comments on to the buyer

Thanks

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  • 301 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%



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