Five reasons why estate agents should support the retention of the Home Information Pack

The National Association of Estate Agents has gone out its way to put down the Home Information Pack, and indeed within recent weeks has called for the suspension of the HIP regulations (http://bit.ly/7YNQvF). I find it difficult to see the logic behind this strategy, particularly as the high street estate agent should in my view be looking at the HIP not as the enemy, but rather as an asset that can, if used properly, bring about many benefits.


So here are my Top 5 reasons for the estate agent to embrace rather than reject the HIP:


1. First and foremost, the HIP is one of the only vehicles out there that can be used to capture the seller at a stage when they may not have had any contact with other property professionals. The HIP should be looked at as an effective sales tool to bring in more clients and to then once secured, and with the help of associated professionals such as IFAs and solicitors, be used as a basis to earn referral commission. If the HIP is taken away, many sellers may revert back to contacting IFAs before beginning the process of marketing.


2. The importance of capturing the seller at the beginning of the selling process, and as such being a head of the queue, should not be underestimated, and for this reason the cost of the HIP should be viewed as part and parcel of the agent’s annual marketing budget. Most HIP suppliers can supply the HIP at short over base cost and rather as some agents do, mark this up with a higher retail price, my suggestion would be to offer the HIP FREE of charge. This can then be absorbed as part and parcel of the marketing budget for that property. This will not only attract more sellers, it will also encourage loyalty. This is of particular importance at a time when Grant Shapps and the Conservatives claim (disingenuously) that the cost of the HIP is stalling the property market.


3. The HIP presents a golden opportunity for the agent to pause and engage fully with the seller. I do not understand why more agents do not use the Property Information Questionnaire as a means of selling and highlighting the positive features of a property. For instance if it’s been re-wired or had a new roof, why not push these features and attach to the PIQ the documents evidencing the cost of the repairs/improvements. Some may look at this as a burdensome exercise but I know some agents do invest the time to make sure as much information and documentation is provided within, and with this form so as to make sure the time between offer and exchange of contracts is shortened.


4. The principle of delivery of upfront information on which the HIP is based should only be viewed by the agent as helpful. How many times has an agent and indeed a buyer only found out about a defect in title or about an adverse boundary after the property has been removed from the market and a solicitor is engaged. Surely the seller, the buyer and the agent would all benefit if any potential problem of this sort could be identified at the time marketing rather than later. The seller benefits as early detection of problems presents the opportunity to find early solutions so as to ensure the property is marketed in the full knowledge of the problem but with the solution attached. This then avoids the loss of time and cost associated with abortive transactions. The buyer is also kept happy and more likely to stick to the transaction and arrange a mortgage without having to deal with unforeseen queries. The buyer will also avoid having to waste the time and expense that is associated with late withdrawal from a transaction. Finally, the agent benefits through having a happy seller and the prospect of repeat and recommended business, as well as getting his hands onto his commission that much quicker.


5. The proposed evolution of the HIP into a ‘ready exchange pack’ (http://bit.ly/33c61e) brings to the agent all of the above benefits as well as creating the opportunity of a sales edge on competitors. What better way is there to market a property in the shop window as both ‘exchange and mortgage ready’! If I was a buyer and there were two properties almost identical other than the fact one was ‘ready to exchange’ it would be a no brainer which one I would choose.


So come on agents, the time has come to get behind the HIP and register with the NAEA your displeasure about how the Association is trying to remove from you one of the best, if not the only sales tool that has come your way during the last decade.