Sell and Rent Back: Are HIPs Required?

From 14 December 2007, all properties marketed for sale in England & Wales must have a HIP or Home Information Pack. HIP is a list of documents issued by a qualified professional and usually costs between £400 to £800 to the home seller. The cost of preparing a HIP is in addition to other selling costs estate agency commission, solicitors etc.

However, as we (Instant Angels) are private buyers of your property, if you sell your property to us then you do not require HIPs - a huge saving not only on HIPs or estate agent's commissions but other benefits too that a private and certain sale of your property will bring.

Some estate agents are offering 'free' HIPs. Looking into detail, most home sellers find hidden costs associated with that offer. This can vary from higher sales commission to exclusivity and/or extended tie-in of the sale term contract, meaning that you either pay more on sale or you are tied in with the same agent for a longer term, regardless of whether your property is sold or not.

What exactly are HIPs?
HIPs contain information that buyers need to know before buying the property. HIPs are issued by qualified inspectors. One of the tests required by law is to assess your house for its energy efficiency. It must be given a grading from A to G - similar to the energy efficiency gradings awarded to fridges and washing machines.

HIPs must include the following documents. The estimated cost to seller is in the region of £400-£800.

• 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)

At a further cost of around £300-£400, optional documents can also be included. They are:

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

Are HIPs good thing?
They are - but for buyers! Sellers using traditional methods to sell their property (e.g. estate agents, any advertising like papers or 'For Sale' board outside their house etc) must have a HIP compiled - which is clearly an extra expense and hassle. Buyers usually win out because HIPs privide them with a lot more information about the property. This information can be used to buyer's advantage by making a lower offer.

Besides, once prepared, HIPs are only valid for a few months. They must be instructed again if property fails to sell within that time frame, incurring further costs.

Selling to Instant Angels: HIPs not required
We are private buyers of your property. If you sell your property to us then you do not need to worry about HIPs because they will not be required. Besides, we can offer various services to suit your requirements. For instance, we can buy your property fast, help stop repossession (if you are facing one), offer sell and rent back. You can even have an option to buy your property back in a few years (say 2-5 years) at a price fixed today.

You can submit your property now and some one will contact you shortly. Alternatively, contact us now to find out more about our services.

More about HIPs
You can learn more about HIPs at following links:

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