HIPS-reasonable fee to leave agent?

girlybasschick

Has anyone any experience of trying to leave an agent with whom they've done a 'deal' with the HIP pack?
We had a deal with ours and they have proved more than useless in trying to sell our house. We want to change agent but after reading the small print they want an extortionate amount of cash if we no longer market our house with them.
Not sure how this site is with naming names so I shan't name and shame. Needless to say they are a big chain and I'm concerned that as well as the endless mortgage repayments we've had to pay through their useless marketing, we may also be lumbered with a big bill if we try to use someone who is actually bothered about making a sale.
BTW our house is a standard two up two down terrace, reasonable condition, clean, tidy, neutrally decorated etc I've also done a mystery house buyer on them and they didn't hand over the details of our house!

Doozergirl

How much do they want to charge?

I'd expect a really nice figure like £400. That HIP had better belong to you once you'd left them though.

Jorgan_2

Doozergirl wrote: »

I'd expect a really nice figure like £400. That HIP had better belong to you once you'd left them though.

Thats one of the reasons we us local solicitors, rather than a HIP company, to sort out the HIPs. It belongs to the vendor so if they need to move on, they can.

OP, the important question is, who does the HIP belong to? If you paid for it, it should be yours, you need to check what you have signed.

chriserenity

girlybasschick wrote: »

Has anyone any experience of trying to leave an agent with whom they've done a 'deal' with the HIP pack?
We had a deal with ours and they have proved more than useless in trying to sell our house. We want to change agent but after reading the small print they want an extortionate amount of cash if we no longer market our house with them.
Not sure how this site is with naming names so I shan't name and shame. Needless to say they are a big chain and I'm concerned that as well as the endless mortgage repayments we've had to pay through their useless marketing, we may also be lumbered with a big bill if we try to use someone who is actually bothered about making a sale.
BTW our house is a standard two up two down terrace, reasonable condition, clean, tidy, neutrally decorated etc I've also done a mystery house buyer on them and they didn't hand over the details of our house!

I have not experienced this as a seller personally but a few of our HIP customers who opted to be private sellers did so after being stung by agents offering free HIPs. They found themselves in exactly the same position as you - paying a hefty 'getout' fee and the HIP wasn't then released to the seller which meant they ended up then having to then pay AGAIN for another HIP in order to get their house sold.
As the previous poster has stated it would be best to go through your t's and c's to find out what your position is. As a rule of thumb if you paid for the HIP then you should own it and be free to take it to any agent you choose, your contract may negate this rule though ...

Needless to point out to others reading this thread the importance of reading the terms and conditions of 'too good to be true' offers. They usually are just that. Although there are many estate agents out there that don't use the HIP as leverage to keep you with them there are bad apples. Paying for a HIP yourself then taking it to an estate agent ensures the HIP is 100% controlled by you and will not be used in this way.

jimc_2

Sounds like a good case for a complaint to the OFT of 'unreasonable practice'. This needs to be nipped in the bud. The original concept was that the HIP belonged to the property and the seller could reuse it (within limits) when selling by a different route.

I'm sure Trading Standards would be interested in a case where the seller is paying for the HIP (even just as a getout payment) but ends up without the HIP in their hands!

I'm very interested in what weasel words the Estate Agents put in their contract regarding this. Do you own the HIP after you tear up their contract? How much do they want to charge you? (As a previous post pointed out, a HIP should cost between £250 - £400 with a government survey showing most costing about £350.) Do they specifically refer to the HIP in their getout clause or is it just a general statement about 'marketing costs'? Either way it looks like sharp practice.

BrixMorta

jimc wrote: »

I'm very interested in what weasel words the Estate Agents put in their contract regarding this. Do you own the HIP after you tear up their contract? How much do they want to charge you? (As a previous post pointed out, a HIP should cost between £250 - £400 with a government survey showing most costing about £350.) Do they specifically refer to the HIP in their getout clause or is it just a general statement about 'marketing costs'? Either way it looks like sharp practice.

The Hip belongs to whoever pays for it. If the agent funded the hip them it seems perfectly reasonable that the EA should ask the seller to refund them if they sack them. The Hip would then be passed to the seller for use in the new marketing campaign.

jimc_2

BrixMorta wrote: »

If the agent funded the hip them it seems perfectly reasonable that the EA should ask the seller to refund them if they sack them.

That's the whole point here. Is the agent merely asking for reimbursement at cost price for the HIP or are they charging an unjustifiably large sum for it as a penalty for leaving them? Will they even hand the HIP over after the termination by arguing that the exit fee was for (undefined) "marketing costs" and the HIP was not part of these. In his(?) post Chriserenity has reported cases where it has not been handed over and I would like to know what justifications the agents are using this time.

Probably the best advice to sellers now is - No matter what enticements are used, NEVER get your HIP through an agent. Always get it independently from a specialist HIP provider (There are lots out there) or get your solicitor to organise it (but remember you'll probably be paying a commission through them).

chriserenity

jimc wrote: »

That's the whole point here. Is the agent merely asking for reimbursement at cost price for the HIP or are they charging an unjustifiably large sum for it as a penalty for leaving them? Will they even hand the HIP over after the termination by arguing that the exit fee was for (undefined) "marketing costs" and the HIP was not part of these. In his(?) post Chriserenity has reported cases where it has not been handed over and I would like to know what justifications the agents are using this time.

Probably the best advice to sellers now is - No matter what enticements are used, NEVER get your HIP through an agent. Always get it independently from a specialist HIP provider (There are lots out there) or get your solicitor to organise it (but remember you'll probably be paying a commission through them).

Yes I am a he :rotfl:!

I think most agent provided HIPs are on the level TBH. Some agents just pass the instructions straight to a HIP provider so the vendor contracts directly with them, some agents buy the HIPs in and pass them on for a markup and still more agents buy them in directly or through deferred payment then just charge the vendor in their normal fees at the end of the process but this is usually more expensive as credit has to be paid for. There are even more ways HIPs are organised by the agent as well.

I wouldn't say NEVER get your HIP from an agent but examples like this do highlight the need to be wary and read the small print. At the end of the day if this kind of practice becomes commonplace the agents responsible will only drive vendors away from agents and towards HIP providers directly which is dangerous for them as many HIP providers make money by referring vendors to certain agents. We don't do this ourselves as we are impartial but I know some who do.

Shady underworld of the property market eh?

jimc_2

chriserenity wrote: »

I think most agent provided HIPs are on the level TBH. ........ but examples like this do highlight the need to be wary and read the small print.

Could have been a Christine! Oh the anonymous world of the Internet!

Again I agree that many (most?) agents are honest and above board but there is an intractable rump that just will just not behave. I do not like the NAEA arguing against HIPs on one hand and individual agents using them to try to lock-in sellers on the other.

I am concerned what is in the OPs contract about this that makes them feel they are being ripped-off. If we can find out we can refer the clause or the agent to the appropriate authority.

As luck would have it, I have just been leafletted by the local agent (part of a national chain) offering a HIP deferred to sale or 9 months which looks like good news for some sellers but then there is that TINY 'see T&Cs on the Supply Agreement".

chriserenity

jimc wrote: »

As luck would have it, I have just been leafletted by the local agent (part of a national chain) offering a HIP deferred to sale or 9 months which looks like good news for some sellers but then there is that TINY 'see T&Cs on the Supply Agreement".

If you get hold of the supply agreement I would check for clauses pertaining to the subject of this thread of course. Also I would watch out for expensive conveyancing linked with the HIP - often it can be cheaper/better to get separate conveyancing. Also, check if there is an extra charge for the deferred payment option. The estate agent most likely has to pay for this credit and may raise the HIP cost accordingly. I've seen agents who charge the same normal price for deferred payment (i.e. no increased cost in end of sale fees) and i've seen agents who itemise the HIP as a separate cost to the normal % of sale value taken as commission.

You can check if the EA is buying in the HIP, marking it up and selling it to you by asking who the HIP provider is then contacting them directly as a private seller to see if there is discrepancy in the price. If there is a tie-in clause like the possible one we've been talking about this might be another reason to organise it yourself. Of course you don't have to use the HIP provider the EA recommends.

Hope this is a useful 'check list' (but its not exhaustive)