Be careful about free or discounted HIPs
December 31, 2007
A warning has been issued to potential home sellers with regards to free or deeply discounted Home Information Packs that are being offered by some estate agents. According to reports some estate agents are offering these packs for just a couple of hundred pounds or even for free, which is tempting for many home sellers that want to save money. However, there is a sting in the tail that home sellers need to look out for, which could end up costing them a small fortune.
Home Information Packs were rolled out to all residential properties in England and Wales last week, and can prove costly to homeowners. This is why many people thinking of selling their home may feel that the low cost or free HIPs offer is a good one. However, it means that you will have to sign up to one particular estate agent, and if you wish to move you could incur costly fees of several hundred pounds or more.
One house seller told reporters that he had questioned his estate agent about what would happen if he took up the special offer HIP and then wanted to switch agents.
He stated: “It was suggested that another £300 to £400 would be added to the price I had already paid. If I did change agent, I would expect to be able to take it with me and offer the same HIP through another agent.”
An industry official stated that this would be done because the estate agent would have to be reimbursed for the cost of the pack if the consumer decided to switch. He said: “Clearly, if the estate agent that you are not using anymore has paid for the HIP, he will want reimbursing. We see these things about free HIPs, but as we know there is no such thing as a free lunch.”
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