I think they are an incredibly BAD idea. And will cost a fortune. They won't be worth the paper they're written on after the property has been on the market for more than a few months. What then? Another grand to get 'em revised? Buyers will trust them less than Tony Blair with the truth. All in all, I'd say HIPs are going to be Labour's poll tax.
MM
True. But when I bought an off-plan flat in Australia I was given a contract pack that was much the same as what is envisaged in the sellers pack: plan, search, copy of title, planning consent etc. It was almost easier than buying a car.
Surely Tony; you'll concede that a Developer who's purchased a virgin site would readily provide a search; copy of title, planning permission et.al - which hed had to generate anyway in the course of developing his purchase into saleable portions; however Mr and Mrs Bloggs are now to be faced with spending all this money up front. All of these 'packs' seemed to have been dreamed up by lawyers to keep other lawyers in the standard to which they've become accustomed.
Just how are surveyors going to get by on doing just one survey per house?
According to today's Telegraph 80% of buyers just rely on the mortgage valuation. The likely problem is not going to be unemployed surveyors, rather a shortage of suitably qualified people to produce the reports.
That and those who still want their own independent survey because the don't trust the marketing bro^h^h^h^h^h^h^h^h^h^h^h survey produced at the vendors behest.
brown envelopes from estate agents?
Twenty years ago you rarely saw 'For Sale' signs, by the time the agent got the board up it said 'Sold'. I expect the 'For Sale' signs will be rarer in future. The HIP is supposed to save money overall by avoiding surveys where the sale is not completed. But apart from the problem of a vendor survey being wothless, none of the other information in the pack will be valid for more than a few months. So if I was selling I wouldn't go to the expense unless I was sure of a sale. So I might by some form of words indicate that the property would be worth looking at, that if the right offer was made etc, but I wouldn't be putting it up for sale or putting together the HIP until the right offer was made. It is just interfering in the normal process of price negotiation between buyer and seller. As with most legislation it is driven by special interest groups and large companies -- big housebuilders with whole estates of tacky little boxes to shift will of course have all the right paper work in big bright glossy folders.
If HIPs ever get off the ground, the screaming will start low, then work itself up to an ear-shattering crescendo before culminating in a cacophony of complaints and litigation. There is so much that can go wrong, that will go wrong, with bungs, out-of-date HIPs, buyers refusing to consider a HIP, cowboy surveyors, and so on, that the government must be totally mad to be contemplating all of this in a very shaky market on which the economy largely depends for people to start spending again.
But then we already knew that this government is mad.
MM
... sellers refusing to prepare them (yours truly).
Hang about, isn't a HIP going to be mandatory then?
MM
Yep. Like I care.
Most of the reports are not expensive, and can be got on line for a small fee. The expensive one is the survayors one, where he writes a load of words, but says noting, cause hs words it in that way. s/he may then recommend a dozen or more reports, and now you are really spending money.
I can't see the banks trusting a valuation form anybody they don't appoint.
Rick
Not my money. The purchaser's money. If you want any of this meaningless tosh, you can pay for it.
As for myself, I trust a survey obtained by the vendor as far as I can comfortably spit a rat. Have the Government never heard of the concept of "caveat emptor"? I shall be obtaining my own survey, thanks.
Well done, Fatty 2Jags, you've just pissed away another grand of my money in exchange for ... nothing.
Well done. I would do exactly the same.
Apart from the complete intrusion into people's private business, this also cuts across the basic commercial principle of "caveat emptor".
Bloody handy for articulating your thighs though.
HTH
Paul.
The HIP 'survey' isn't done by a surveyor. So far, no mortgage company has said they will accept it either.
Possibly why J++ is proposing it.....
But if one is selling, one is going to have to care! (Perhaps Blunkett will be put in charge of HIP enforcement.)
MM
Yes, I couldn't think of the correct term. What will the wallies with
3 days training and barely able to walk upright unaided be called?This is why there is going to be an almighty punch-up.
MM
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