Doom and gloom

[AtW]

In todays market paying for a HIP may be more of a gamble for some than a cost.

It's a small cost comparing to asset sale and high likelyhood of profit of this sale (unless negative equity).

I am not defending HIPs - they were watered down (I believe by real estate lobbists), but what I am saying is that if you have got to sell £200k worth of stuff, then don't whine about £500 extra cost - buyers are hit with stamp duty, which really should have been split between seller and buyer.

[AtW]

Perhaps why it’s called a housing market, rather than say a housing shop.

I don't care how it is called - it does not exist on Alpha Centauri outside of economic laws of this planet. All other markets in the world have costs for buyers and sellers, so housing market is well overdue for some correction in this sense too.

It’s only a cost of the sale if you manage to sell, otherwise it’s just a cost. This is essentially the crux of the (my) argument.

If your house does not sell in 3-6 months then you should drop price: end of story.

[Diver]

It's a small cost comparing to asset sale and high likelyhood of profit of this sale (unless negative equity).

I am not defending HIPs - they were watered down (I believe by real estate lobbists), but what I am saying is that if you have got to sell £200k worth of stuff, then don't whine about £500 extra cost - buyers are hit with stamp duty, which really should have been split between seller and buyer.

Oops!

Thought we were talking about Hip replacement surgery costs

[Diver]

I recently purchased a house, I asked my solicitor to contact the seller and inform them in writing that I did not want nor require a HIP report.
I was informed that a HIP was required by law.
A HIP that was useless to me as upon exchange of contracts, I had installed, a new roof, loft and cavity wall insulation, damp proof course, new windows & doors, new central heating, new wiring etc.
What was the point of the HIP. What a waste of money for the seller.

[AtW]

What was the point of the HIP.

If it stops people who, as it was put above, "punts" house hoping it would sell for ridiculous price, then it's good already: selling house is a transaction that should have costs for both buyers and sellers, just like in all other markets.

HIPs were watered down thanks to solicitors and real estate lobby, the idea for HIPs is correct, but again, this watering down sure is a bummer. Nevetherless anyone who sells £200k house at a profit should whine about £500 cost of doing so. Maybe it would have been better if fixed fee stamp duty was imposed on sellers. Would they have minded that? How about paying same amount of stamp duty as buyers?

[TimberWolf]

I don't care how it is called - it does not exist on Alpha Centauri outside of economic laws of this planet. All other markets in the world have costs for buyers and sellers, so housing market is well overdue for some correction in this sense too.

There are other costs associated with a sale as you know, but HIPs relate to the possibility of a sale rather than a sale. It's not a legally binding document that says you must now sell.

If your house does not sell in 3-6 months then you should drop price: end of story.

No doubt the majority lower their prices, but people aren’t keen to sell out at the bottom.

[Diver]

If it stops people who, as it was put above, "punts" house hoping it would sell for ridiculous price, then it's good already: selling house is a transaction that should have costs for both buyers and sellers, just like in all other markets.

HIPs were watered down thanks to solicitors and real estate lobby, the idea for HIPs is correct, but again, this watering down sure is a bummer. Nevetherless anyone who sells £200k house at a profit should whine about £500 cost of doing so. Maybe it would have been better if fixed fee stamp duty was imposed on sellers. Would they have minded that? How about paying same amount of stamp duty as buyers?

My £2,400.00 Stamp duty was refunded to me, after I paid it, because my new house falls just within a rural exemption area. <--- hug for the men in suits who thought that one up

[AtW]

There are other costs associated with a sale as you know, but HIPs relate to the possibility of a sale rather than a sale. It's not a legally binding document that says you must now sell.

If HIP was £5k (or 2-3% of sell price), then I would probably agree, however when cost is less than 0.3%, then, given that seller is likely to profit from increase in value, there is nothing serious to whine about - be grateful if you sell the house at all for that ridiculous of money it is supposed to be "worth".

No doubt the majority lower their prices, but people aren’t keen to sell out at the bottom.

Who says it's bottom now? We have not seen real falls yet - people (sellers) just have this psycology of having all this fantasy money in bank account, so they take it very hard to "lose" even £1000 off sell price, same goes for HIPs - sellers think its an attempt to rob their profits.

[AtW]

My £2,400.00 Stamp duty was refunded to me, after I paid it, because my new house falls just within a rural exemption area. <--- hug for the men in suits who thought that one up

Odd rule, but fair enough - I suppose rural areas are hit hard enough already.

[Diver]

If HIP was £5k (or 2-3% of sell price), then I would probably agree, however when cost is less than 0.3%, then, given that seller is likely to profit from increase in value, there is nothing serious to whine about - be grateful if you sell the house at all for that ridiculous of money it is supposed to be "worth".



Who says it's bottom now? We have not seen real falls yet - people (sellers) just have this psycology of having all this fantasy money in bank account, so they take it very hard to "lose" even £1000 off sell price, same goes for HIPs - sellers think its an attempt to rob their profits.

What is a HIP really ?

The mandatory documents are:

* An index (ie a list of the contents of the HIP)
* A sale statement (summarising the terms of sale)
* Evidence of title
* Standard searches (ie local authority enquiries and a drainage and water search)
* An Energy Performance Certificate (EPC)
* Commonhold information (where appropriate)
* A copy of the lease (where appropriate)

Documents that are optional include:

* A Home Condition Report (HCR)
* Additional leasehold, information
* Guarantees and warranties
* Other searches relevant to the particular area

Who compiles HIPs?
Sellers can hire estate agents, solicitors, separate pack providers, or do it themselves.

If they do it themselves it costs a small amount of time and £85 for the searches and the cost of the paper & ink.

What's the big deal ?