Free HIPs may not be as good as it sounds
December 26, 2007
HIPs, or Home Information Packs, have caused a lot of controversy over recent months since they were introduced, with many homeowners and industry professionals, such as estate agents, claiming that they are costly and cause delays when it comes to the sale and purchase of homes. These Home Information Packs typically cost hundreds of pounds each, and since last week have applied to all residential properties being marketed for sale across England and Wales.
According to a recent report some consumers are being offered these Home Information Packs at bargain prices by some estate agents, with some agents even offering the packs for free to those intending to market their property with them. However, although this may sound like a tempting offer that cannot be passed up there is a sting in the tail, state experts, and the consumers could still end up paying the cost of the HIP – and in some cases more besides.
Consumers are being urged to bear in mind that in order to get the discounted or free HIP the consumer will have to agree to give exclusive sale rights to the estate agent in question. If the seller decides to market the property through another agent the original estate agent can charge a withdrawal fee that could run into several hundred pounds, thus making up the cost of the Home Information Pack that was provided.
One industry professional stated that the agents had to be reimbursed for the packs if they were not going to make profit from the sale of the home, stating: “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.”
Alan Wright
26th December 2007
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