Though it is difficult to make specific comment on the credibility or otherwise of these offers, I can offer some general comments and tips that may help with making an informed decision:
· The ‘national’ cost of a HIP compliant ‘search package’ does not vary too much from one search supplier to another. As the cost is therefore pretty standard, any ‘package’ where the cost of the HIP minus the EPC is under £125 one should begin to question whether ‘short cuts’ are being made to increase the profit margin, and whether if as is likely the supplier is only making a small profit from the transaction, will that supplier be able to secure a lasting future in a very competitive market. Your customers will not be too impressed having switched supplier only to find a few months down the road that their HIPs are caught up in a bankruptcy or insolvency situation.
· Just because the provider has what appears to be all the right ‘badges’ such for example the HIP Code, do not rely on this solely, still do all the checks. Does the provider, for instance, hold liability insurance, and if so, what does this cover? If you are buying in components and adding your EPC, and then selling on, what happens if the searches are not compliant and someone who relies on the search sues? Are you covered?
· It is tempting to consider ‘jumping ship’, especially if money can be saved. However one needs to consider not only the above, but also question of services levels and turnaround times. Due diligence of the supplier offering these ‘fantastic deals’ should always be carried out. Always seek a reference or two from existing customers
· The disbursement price on all HIP searches will be increasing by £11 in January 2010. Any offer kicking around now probably excludes this increase and therefore may be limited in time. You should check and ask this question.
· Unbelievable offers of this type are also usually linked to conditions asking for instance, payment ‘up front’, or are conditional on making use of associated services, such as conveyancing. Always ask to see the terms and conditions and make sure there is no hidden print.
· The political uncertainty has prompted some people to jump in to the arena and to try and make a fast buck thinking if the HIP industry goes under next year there will be no one around to complain about compliance shortcomings etc. Beware not to fall in their grasp. It is a slippery slope!
As with most things if it is cheap there is some reason for it being cheap – in life you get what you pay for!
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