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krosfyah

Will Home Info Packs (hips) Be Good For Buyers/sellers/neither?

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At first i thought "great! More accountability for sellers to declare what the state of their over valued property is worth - perhaps we will see price falls as a result", then i read that sellers will just pass on the costs of having the HIP's taken out (£600-1000 i believe) onto the buyer which is not so good. So in the end, who is HIP's actually going to benefit?

What do you guys think? I still think knowing more about the state of the property is a good thing regardless.

Thoughts?

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At first i thought "great! More accountability for sellers to declare what the state of their over valued property is worth - perhaps we will see price falls as a result", then i read that sellers will just pass on the costs of having the HIP's taken out (£600-1000 i believe) onto the buyer which is not so good. So in the end, who is HIP's actually going to benefit?

What do you guys think? I still think knowing more about the state of the property is a good thing regardless.

Thoughts?

Maybe in a rising market - but here's my thinking on the subject.

House prices will have started to slide by the end of this year / begining of next - increase in IR's etc. To add further "fuel to the fire" they'll be a glut of properties going on the market to beat the HIP's deadline - June which will start an uncontrolable drop in asking prices. By the end of the year Vendors will be prepared to let you sleep with their partners if it gets them a sale! Anyone thinking HIP's is going to Increase prices are just plain barmy. :lol:

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I don't think HIPS will have a massive effect on prices or the market. I expect larger estate agents are gearing up to offer sellers a deal to cover the initial HIPS charge. Potentially making it difficult for smaller agents to survive.

The problem for buyers is that lenders won't accept the survey from the HIPs pack and so will still carry out their own. Unless this is resolved, HIPS remain fairly pointless.

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I don't think HIPS will have a massive effect on prices or the market. I expect larger estate agents are gearing up to offer sellers a deal to cover the initial HIPS charge. Potentially making it difficult for smaller agents to survive.

The problem for buyers is that lenders won't accept the survey from the HIPs pack and so will still carry out their own. Unless this is resolved, HIPS remain fairly pointless.

I would agree as long as agents are compelled by competition to do a no sale no fee HIP.

Also, this renewal every 3 months business is probably going to just be a reprint of the original & a recheck if definitely necessary.

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The problem for buyers is that lenders won't accept the survey from the HIPs pack and so will still carry out their own. Unless this is resolved, HIPS remain fairly pointless.

This is odd - why not? This seems pointless in having them, unless you can take them on the weight of the documentation (i.e. the survey) that has been provided.

WTF is the point in them then?

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At first i thought "great! More accountability for sellers to declare what the state of their over valued property is worth - perhaps we will see price falls as a result", then i read that sellers will just pass on the costs of having the HIP's taken out (£600-1000 i believe) onto the buyer which is not so good. So in the end, who is HIP's actually going to benefit?

What do you guys think? I still think knowing more about the state of the property is a good thing regardless.

Thoughts?

Can I suggest you put HIPS into the search box after clicking the link and make your own mind up? Personally I reckon there is no legit. argument against their introduction.

http://firstrung.co.uk/page.asp?pageid=SEARCH

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This is odd - why not? This seems pointless in having them, unless you can take them on the weight of the documentation (i.e. the survey) that has been provided.

WTF is the point in them then?

As I understand it the lenders aren't satisfied with the Home Condition Report contained in HIPs, partly because it doesn't contain a valuation. Ultimately, lenders want their interest protecting and this means they want a valuation report which they can rely upon and sue over if things go wrong.

The main benefit to HIPS is that as searches have already been carried out it reduces the amount of time and money the buyer has to spend waiting for them. However, it won't prevent additional enquiries being raised by lawyers and so won't necessarily speed up the conveyancing process.

The biggest effect will be on the property industry. IMO sales will be concentrated in the hands of fewer Estate Agent's who in turn will expect to send work to solicitors firm willing to pay them for the referral. This means that only big 'factory style' conveyancing houses will get the bulk work. So, pretty big changes to the industry. Whether they will be for the benefit of the buyer or not remains to be seen.

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I believe HIPs will be a very good thing. I have recently put in an offer on a local property that I believed to be in sound condition. Following the survey (at a cost of £500), a number of structural defects were identified that caused the transaction to fall through. These issues were not disclosed by the estate agent or vendor. Home Information Packs contain a 'Home Conditon report' that should highlight these defects early and prevent this type of situation occurring.

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At first i thought "great! More accountability for sellers to declare what the state of their over valued property is worth - perhaps we will see price falls as a result", then i read that sellers will just pass on the costs of having the HIP's taken out (£600-1000 i believe) onto the buyer which is not so good. So in the end, who is HIP's actually going to benefit?

House sellers sell their properties for as much as they can get. If they could get the £600-10000 extra out of the buyers, then they'd be doing so already. The sellers can bump the asking prices of their properties up if they like, but the buyers will simply offer what they want to pay anyhow.

Billly Shears

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  • 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%



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