Home Seller Packs – Potential Problems on the horizon

There is a potential crisis on the horizon in the property market within the United Kingdom and this crisis revolves around the introduction off home seller packs.

For the un-initiated the Home Information Pack (to give the product its full official title) was introduced as part of the 1997 general election manifesto by New Labour.

The proposal was presented as a vote meaning may show to try and end the practice of gazumping.

The idea was that before putting a property on the market, sailors would be required to compile a little book for the home which would then be available for distribution to potential buyers.

The additional aim with this exercise was to try and speed up the buying process in England and Wales, which typically takes around 12 weeks once an offer to purchase is expected.

Government ministers boasted that these information packs would end a process known as gazumping where unscrupulous sellers and buyers hijack home sales by putting in a high bid at the last minute.

Initially, their opinion at to be widespread support and acceptance for the scheme from solicitors, he states agents and mortgage lenders. However support for this scheme has subsequently gone from being extremely positive to extremely Luke-warm at best.

Experts suggest it at the time that the poem information packs should be a slim dossier containing a trough style contract and the legal for him containing basic information about the property such as whether it is freehold or leasehold. These packs would also include copies of any guarantees plus local authority searches detailing any relevant planning applications.

However, a recent House of Lords committee said that this scheme could add up to £1000 to the cost of selling a home. There now appears to be such hostility to this proposal that estate agents have been advising potential sellers to put their properties on the market prior to the June 1st deadline so as to avoid being forced to pay for a home information pack.

Each is now felt by experts within the industry that this project made it to one in five potential settlers from putting their homes on the market with the knock on effect that this will reduce supply and push-up already inflated house prices. Something the Bank of England and the government almost team to avoid.

The final nail possibly in the coffin of this proposal would appear that government officials do not know themselves exactly how much these packs would cost. This, depending on your viewpoint, is a bit of a problem.

We have the potential lunacy over a situation occurring whereby a government is advising its citizens to undertake an exercise that they don’t exactly know themselves how much is going to cost.

Madness.

Scott James writes about a number of Internet Real Estate based issues such as Real Estate Investors , Home Finance and also about Bankruptcy Services UK and Foreclosure Issues too

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