Hands off those HIPs

20-Aug-2009

When you are selling your home, you would be forgiven for thinking that Home Information Packs (HIPs) would come at a standardised price.  Not so, according to new research from consumer publication Which? Money, claiming that there is a shocking gap of almost £300 between the most expensive and the cheapest HIPs on the market.

The packs were introduced in 2004 as a way of reducing the number of house sales that are called off by the buyer before completion, a practice known as "gazumping".  By law, a HIP must now be provided before a property in England and Wales can be put on the market, a requirement that caused plenty of controversy in the property industry when it was brought in due to the additional costs involved.  The Home Information Pack (also known as a 'Seller's Pack') comprises a set of documents giving details about the property such as its Energy Performance Certificate, title documents and, since April 2009, a Property Information Questionnaire.  You can find out more about Home Information Packs on the official website.

According to the Which? Money survey of 10 direct HIP suppliers and 8 major UK estate agents, the average cost of a HIP was £99 lower by buying directly, rather than through an estate agent.  James Daley, Editor, Which? Money, says: "It's now compulsory to get a Home Information Pack before you put your house or flat on the market - in fact, you could be fined up to £200 a day if you don't get one.

"But don't be fooled into thinking that you have to buy it from your estate agent. Our research shows that the most expensive high street agents charge over twice as much as the cheapest online HIP providers - so you could save hundred of pounds by shopping around for the best deal."

The report also reveals that homeowners looking to sell can save potentially thousands of pounds by using an online estate agent rather than the traditional high-street equivalents.  Selling a property online incurs far lower commissions, due to the reduced overheads. At online agent House Web, the popular 'Platinum' package costs £199, and this includes a For Sale Board, an advert in HotProperty magazine,  and a unique 0870 phone number.  Adverts stay on the site until the property is sold and enquiries go directly to the vendor in the form of an email or a phone call.

Although SimplyFinance would strongly advocate shopping around to find the best deal on your Home Information Pack, saving money shouldn't come at the expense of a high level of service.  If you're not planning to buy your HIP from an estate agent, it's important to ensure that your HIP provider subscribes to an industry code of standards such as the HIP code.  Otherwise, you may not be protected if you have a complaint about your pack.  Look up the provider on the Association of Home Insurance Pack Providers website , or that of the Independent Pack Providers Association  before buying to make sure that they are a reputable provider.