I am in the process of moving home. I am now therefore experiencing the joys of entering the home selling and buying fray.
Marketing for sale was reasonably painless with the HIP emerging before the ink was dry on the terms and conditions of the selling agent. Yes, I know I am in a privileged position as regard the production of the HIP, however speaking with the agent and other agents the delivery of the HIP is not I am told a delaying factor. The real problem I am told is ‘doing the deal’ with the seller as most sellers are using the suppressed market conditions to negotiate favourable commission rates.
It is fair to say those looking at my property did not ask for sight of the HIP, but on asking when viewings took place I was told that the agent had not mentioned the HIP, or more importantly explained the benefits of the HIP.
I know it is claimed nobody asks for the HIP and I acknowledge this is to a large extent true, however the fact is that this should not cause surprise as I know from my experience as a solicitor that there was little interest shown, even before the HIP came in, by either the seller or buyer about the legal process. No one would ask to see the searches or legal documents. All I was ever asked was ‘when will I be able to move in’. This was the one and only request.
There may be little consumer interest in the HIP and in absence of the selling agent taking the time to explain the purpose of the HIP and the benefits it confers this is likely to continue. This should not however distract from the fact that as soon as an offer is received, as in my case, the HIP begins to take on greater significance as it is at this point that the seller’s solicitor is crying out for it to be sent through.
The seller’s solicitor knows the HIP has documents that will help the client to move to exchange much quicker. Before the HIP the seller solicitor would have to get hold of the title documents, order the searches and get the client into obtain the information to get the transaction up and running.
The only delay I could see was at my end, that is as a seller, having to complete the Fixture and Fitting and SIF forms. It is clear the removal of these forms from the HIP was a mistake. By getting these forms completed at the point of marketing would help to save so much time.
My legal firm relying on the HIP and the forms which I returned was able to draft a contract very swiftly and to then put pressure on the buyer’s solicitor for an early exchange.
As for the process of buying, I have been forced by my partner to approach this exercise in a similar fashion to a shopping expedition. I am told I must look at as many properties Rightmove is able to throw our way! I know what will happen. I know the very first property viewed will be the one I am told 200 property viewings later we must buy!
I am pleased to say that out of the 15 or so agents I have engaged with all of the properties in which I have had interest have had HIPs produced. This is reassuring from a compliance perspective and just shows that the requirement for a HIP has now become a well established part of the home buying process.
More worrying however is the fact that all of the agents did not volunteer the HIP. In each case I had to ask for the link to the HIP to be sent through. No wonder Grant Shapps and the other HIP knockers say the HIP is an unwanted product. There really needs to be an obligation placed on the seller or agent to offer the HIP when someone inquires about a property, and to explain the benefits the HIP serves.
It is crying shame that the HIP is not offered as it contains a lot of information that is invaluable to a prospective buyer. For example I can see from the HIP how long the property has been on the market. This has helped when formulating an offer. It tells me about the boundaries that are often the bone of contention. I can also see the rights of way that tell me about shared drives and gardens. The PIQ has details about council tax and improvements and other useful information that is often not included in the sale particulars. Then there is the EPC. Homes always seem warm when viewing and it is difficult without a full survey to assess on viewing energy efficiency. The EPC helps here and I have found that the homes that seem the warmest are often the ones that are leaking the most energy.
Buyers should always ask for the HIP and to read the HIP before viewing so as to be prepared with questions and to use the information when it comes to formulating an offer. It should be looked at as an aid, and not as a burden. A buyer should also refer to the HIP when putting pressure on his or solicitor to exchange quicker. There should be no excuse for long and stressful transactions.
I have also found that those selling are on speaking with them serious about selling. I have come across no time wasters, none of those speculative sellers that were responsible for collapsed transactions and wasted costs. There may be fewer properties on the market and this may be a source for some contention with certain agents. Most of the agents I have spoken with agree however that this has led to more certainty in the process and has meant a greater return on the time and money spent on marketing.
Don’t get me wrong, it’s by no means perfect and there is plenty that can be done to improve the system. It’s a great start and should stay and not as the Conservative Party argues be ‘scrapped’.
Marketing for sale was reasonably painless with the HIP emerging before the ink was dry on the terms and conditions of the selling agent. Yes, I know I am in a privileged position as regard the production of the HIP, however speaking with the agent and other agents the delivery of the HIP is not I am told a delaying factor. The real problem I am told is ‘doing the deal’ with the seller as most sellers are using the suppressed market conditions to negotiate favourable commission rates.
It is fair to say those looking at my property did not ask for sight of the HIP, but on asking when viewings took place I was told that the agent had not mentioned the HIP, or more importantly explained the benefits of the HIP.
I know it is claimed nobody asks for the HIP and I acknowledge this is to a large extent true, however the fact is that this should not cause surprise as I know from my experience as a solicitor that there was little interest shown, even before the HIP came in, by either the seller or buyer about the legal process. No one would ask to see the searches or legal documents. All I was ever asked was ‘when will I be able to move in’. This was the one and only request.
There may be little consumer interest in the HIP and in absence of the selling agent taking the time to explain the purpose of the HIP and the benefits it confers this is likely to continue. This should not however distract from the fact that as soon as an offer is received, as in my case, the HIP begins to take on greater significance as it is at this point that the seller’s solicitor is crying out for it to be sent through.
The seller’s solicitor knows the HIP has documents that will help the client to move to exchange much quicker. Before the HIP the seller solicitor would have to get hold of the title documents, order the searches and get the client into obtain the information to get the transaction up and running.
The only delay I could see was at my end, that is as a seller, having to complete the Fixture and Fitting and SIF forms. It is clear the removal of these forms from the HIP was a mistake. By getting these forms completed at the point of marketing would help to save so much time.
My legal firm relying on the HIP and the forms which I returned was able to draft a contract very swiftly and to then put pressure on the buyer’s solicitor for an early exchange.
As for the process of buying, I have been forced by my partner to approach this exercise in a similar fashion to a shopping expedition. I am told I must look at as many properties Rightmove is able to throw our way! I know what will happen. I know the very first property viewed will be the one I am told 200 property viewings later we must buy!
I am pleased to say that out of the 15 or so agents I have engaged with all of the properties in which I have had interest have had HIPs produced. This is reassuring from a compliance perspective and just shows that the requirement for a HIP has now become a well established part of the home buying process.
More worrying however is the fact that all of the agents did not volunteer the HIP. In each case I had to ask for the link to the HIP to be sent through. No wonder Grant Shapps and the other HIP knockers say the HIP is an unwanted product. There really needs to be an obligation placed on the seller or agent to offer the HIP when someone inquires about a property, and to explain the benefits the HIP serves.
It is crying shame that the HIP is not offered as it contains a lot of information that is invaluable to a prospective buyer. For example I can see from the HIP how long the property has been on the market. This has helped when formulating an offer. It tells me about the boundaries that are often the bone of contention. I can also see the rights of way that tell me about shared drives and gardens. The PIQ has details about council tax and improvements and other useful information that is often not included in the sale particulars. Then there is the EPC. Homes always seem warm when viewing and it is difficult without a full survey to assess on viewing energy efficiency. The EPC helps here and I have found that the homes that seem the warmest are often the ones that are leaking the most energy.
Buyers should always ask for the HIP and to read the HIP before viewing so as to be prepared with questions and to use the information when it comes to formulating an offer. It should be looked at as an aid, and not as a burden. A buyer should also refer to the HIP when putting pressure on his or solicitor to exchange quicker. There should be no excuse for long and stressful transactions.
I have also found that those selling are on speaking with them serious about selling. I have come across no time wasters, none of those speculative sellers that were responsible for collapsed transactions and wasted costs. There may be fewer properties on the market and this may be a source for some contention with certain agents. Most of the agents I have spoken with agree however that this has led to more certainty in the process and has meant a greater return on the time and money spent on marketing.
Don’t get me wrong, it’s by no means perfect and there is plenty that can be done to improve the system. It’s a great start and should stay and not as the Conservative Party argues be ‘scrapped’.
This is a great piece of writing, well said HRG. What I will take away for my own business, is to offer the sellers forms at point of HIP order to my clients along with the PIQ for optional inclusion in the HIP and to send all my clients a HIP fact sheet with information as to how to get the best from HIPs in their transactions! Thank you very much.
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