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There are key issues that estate agents, solicitors and IFAs need to consider when selecting a Hips provider. The Association of Home Information Pack Providers recently broke through the 100-member barrier and with such an array of companies on offer choosing the right Hip partner has never been so challenging.
When it comes to procuring a Hip it is crucial that you are assured of the firm's ability to deliver a quality service. To help you make this judgment those who have signed up to the Hip Code are required to provide the pack promptly, train staff to provide Hips with thoroughness and diligence, respond promptly to queries raised on a Hip, handle complaints speedily and fairly and have a written complaints handling procedure in place.
When it comes to picking a provider to work with it is also vital to recognise quality counts. There has been much talk about the quality of Hips on the market and the fear that some providers are cutting corners and costs by using personal searches in order to grab a bigger slice of the pie.
Buying on price alone is a dangerous strategy and one that can cost you considerable time, hassle and money further down the line.
The Anglian Property report found 35 of the 100 solicitors questioned refused to accept personal searches for fear they may result in the Hip being non-compliant.
With so many solicitors reluctant to accept them, the knock-on effect of these low-cost Hips may delay the conveyancing process and necessitate the commissioning of a new, compliant search.
Solicitors, estate agents, advisers and clients should look carefully at the components of the Hip on offer as well as at the Hip service provider to make sure the pack is actually worth the amount in costs.
Of the estate agents interviewed for Anglian's property report, 85 per cent said the average customer had heard of Hips but needed more information, while 14 per cent were not aware of the packs.
Clearly, estate agents and mortgage advisers still need to educate customers, but who educates the agent and the adviser to keep them abreast of the latest Hips regulations and requirements?
A Hips provider should not just be offering the pack itself but should be keeping the estate agents up-to-speed on the latest legislation and helping them develop the skills to overcome any negative customer attitudes they may encounter.
With Hips the need for speed is vital. Ideally your provider will be experienced in supplying search results and data and turning around Hip requests in double quick time.
The speed of Hip completion is important for estate agents trying to attract vendors, 22 per cent of estate agents that took part in the report cited it as a selling point.
Some providers will be able to produce a standard Hip within a matter of days while others may take several weeks and if a potential buyer comes knocking while your pack is being assembled it could hinder your sale prospects.
Any organisation offering Hips should have a demonstrable track record either working within or supporting the estate agency, mortgage adviser or lender environment and therefore a thorough understanding of the issues within estate agency, surveying services, financial services and conveyancing.
When it comes to flood and home condition reports, a significant number of the estate agents we polled would like to see Hips strengthened in order to reassure buyers.
In fact 21 per cent wanted to see home condition reports as a statutory Hip requirement while 17 per cent would welcome flood assessments within the seller's pack. Ahipp also recommends including an environmental search.
At present none of these are essential elements of the packs but it is preferable to seek a Hip provider who can quickly offer these add-ons should a vendor request them and where they are likely to be of interest to a potential purchaser.
Familiar faces should also be considered when selecting a provider. In an increasingly networked business environment, you may already have successful relationships with certain domestic energy assessors or home inspector, ones you would like to harness in your Hips offering.
Some Hip providers allow customers to use their own preferred suppliers, but others will insist on employing selected individuals or companies and it is vital for mortgage advisers to consider if they wish to use the relationships they already have.
Finally, you should give thought to how you, or rather your clients, would like to pay for a Hip. Are you happy funding the Hip yourself and then recouping the cost from customers or would you prefer the pack provider to liaise directly with your customers for payment?
Some providers also offer flexible finance options to manage payment of the Hip over the course of several months, rather than stumping up the entire sum at once.
Patsy Day is head of sales and marketing for Geodesys, a Hip provider