Agents overcharging for HIPs?

Aug. 19, 2009 - PRLog -- Many Vendors are being charged excessive amounts for Home Information Packs (HIPs) according to consumer Watchdog, Which? Some agents charge in excess of £500 for these HIPs and are clearly making a lot of money out of the Governments requirement that all properties cannot be marketed until a HIP is in place. Clearly, some agents are offering cheap commission rates and recovering monies from sellers by loading the cost of the packs.

Paul Smith of Spicerhaart is quoted in the press as saying; "The majority of the lower cost HIP providers add on fees elsewhere, for example making it a condition you use their conveyancing services." In the interests of fairness, he went on to say " The research doesn't show the full picture. On freehold properties, which is the bulk of our work, our prices are similar to other agencies. The one case identified happens to be a leasehold property which makes the HIP more expensive because of the additional legal work involved."

This may be the case, but of the 3 HIP providers used by Bushells, none have a requirement to use their conveyancing service. In fact 2 don't offer such services.

Halifax Property Services charge over £400 for a HIP on a Freehold property compared to Bushells, whilst Spicerhaart reportedly charge £516 for a HIP on a Leasehold property. With a resurgent property market, these extra charges can add up to significant source of income.

Bushells has been very focused on ensuring sellers get value for money. We give our vendors details of our recommended HIPs providers and they pay the cost price directly. Bushells receives no commission whatsoever from these fees. Further, as the seller has paid for the HIP, it is their property so that should they decide to use another agent, they can pass on the HIP immediately. If the agent pays for the HIP as part of their fees, then the agent owns that HIP and the vendor either has to reimburse the agent or commission a new HIP.

Our HIP's range in price from £227 plus VAT to £270 plus VAT. According to the Daily Mail, this is significantly cheaper than Foxtons, Halifax, Savills, Haart, Barnard Marcus and most other agents.

My view is that these HIPs will be a short term issue as the Conservatives have pledged to abolish HIPs should they win the next election. If that happens, then perhaps we can work towards finding a proper solution to speeding up the conveyancing process rather than add a delay to marketing and increase sellers costs at a time when that is the last thing they need. Imagine being in financial difficulty and having to sell your home to make ends meet, only to discover you have to pay an additional £500 up front just to put your property on the market. When the agent gets a slice of this in addition to their commission, its a painful thought process.

Remember, HIPs are a competitive market and you should seek a good deal where the HIP provider and your Estate Agent have a good relationship and where a tried and tested provider can act swiftly without unnecessary delays. Price, as with all things isn't everything, service is key, but in the words of a certain supermarket, "Every Little Helps!"

Moving House are one of our recommended providers and HIPs can be ordered directly at competitive prices simply by calling them on 0845 077 4496 or visiting their website www.movinghouseconveyancing.com.

# # #

Bushells is one of London's leading estate agents with sales and lettings offices throughout South, South West and South East London. The company is independently owned and prides itself on the highest standards of service. Bushells specialise in residential sales, lettings and property management and are proud members of Association of Residential Lettings Agents and the Ombusdman Scheme for Estate Agents giving you total peace of mind.