October 2007

The fight for survival begins

WHEN energy assessors start talking about suicide on their online forums, you know that all is not well with the introduction of Home Information Packs.

Not only do we have indisputable evidence that many qualified Domestic Energy Assessors are struggling to make ends meet, we also have plenty of anecdotal evidence that estate agents are evading their responsibilities by not ordering HIPs in accordance with the law.

The real issue centres around the policing of HIPs. It will be an almighty task for the Office of Fair Trading and Trading Standards Officers, who are already stretched in their other areas of work, to keep a watchful eye on which estate agents are complying with the law, and which ones risk being fined or banned.

It is therefore inevitable that some estate agents will take the risk, armed with a multitude of excuses should the enforcement agencies come knocking.

Already we have heard of agents backdating instructions to before August 1 or describing four-beds as ‘three-beds and study’.

I’ve even heard of an agent telling clients they don’t need a HIP if their property has been marketed with that agency previously.

What unsuspecting customer will challenge that, bearing in mind that the Government has done very little to inform people about the contents of a HIP? Their current advertising campaign hardly educates and informs.

Without needing a Pack from the first day of marketing a property, what’s to stop anyone saying they are in the process of applying for a Pack, but not actually going ahead with it?

I’m not saying that all estate agents are ignoring the new legislation — far from it. This is not a debate about who is reputable and who isn’t. It’s a discussion about survival — both in business and as individuals.

According to the Royal Institution of Chartered Surveyors, the number of properties with four or more bedrooms that came on to the market in August had halved compared to last year.

Alongside the introduction of HIPs, we have the housing market slowing down and the financial markets up and down like a yo-yo.

It is therefore vital for agencies to remain competitive. And if their neighbouring agencies are getting away with not charging for a HIP, then they too are having to find ways around the legislation to keep their charges down.

For the DE Assessors with mortgages to pay and mouths to feed, the impact has been disastrous.

If you want an insight into how it’s affecting people, read the postings on www.homeinspectorforum.co.uk — some have become emotionally harrowing with one person even describing their suicidal feelings.

What a terrible state for anyone to be in, all because of pointless Government legislation.

Will HIPs for three-bed properties bring the standard of living that the DEAs are desperately seeking — or more excuses from estate agents who are also fighting for survival?

How we are speeding up the process

HIPS are still being touted by the Government as a way of speeding up the house buying process. However, the new legislation does not address the delays that are caused during the mortgage application process.

As a result, we at Spicerhaart have taken the matter into our own hands to create an entirely new company that will slash the time it takes to organise a new mortgage.

Called Valunation, our network of 115 chartered surveyors nationwide are providing valuation solutions using advanced technology, alongside new systems and procedures, to turn the surveying and valuation industry on its head.

Valunation is on the panel of most major lenders, packagers and brokers, which means other estate agents can access this service simply by asking their mortgage providers to use Valunation to carry out the work.

Built into the service is a whole new set of risk management procedures, and the team has been charged with delivering excellence all-round in order to help brokers and lenders provide a better service to their own customers, while at the same time cutting costs.

Valunation has linked up with Calnea Analytics to provide automated valuations using Land Registry data and other sources of information, something which most lenders will allow if there is sufficient equity in a property.

Alongside Panel Management and the AVM (Automated Valuation Model) service, Valunation also provides AVM Plus, Valuations, Portfolio Valuations, Risk Assessment and Energy Performance Certificates. The company aims to increase its product range over time.

As well as using the most up-to-date technology, Valunation has also established a Central Support Unit at our headquarters, to provide all the booking, invoicing and secretarial services, which will enable our surveyors to get on with their jobs, and provide a fast and efficient panel management service and valuation solutions to the residential lending market.

If we wait for the Government to make the changes needed to speed up the home buying process, we would be waiting forever.

Sometimes you just have to take matters into your own hands!

When the going gets tougher — don't go bust!

NOT a day goes by without one firm or another approaching me and asking if we will buy them out.

To me, this signals the start of some bad times ahead for estate agents who have not put money aside for a rainy day.

When the going was good, many extended themselves, buying new offices, making the most of a strong market.

But as soon as the going gets tough, they are not in a strong financial position to see them through the bad times.

The real problem is that many leave it too late before they seek financial advice. Instead of borrowing more money and getting into more debt, they should consider going to whoever in the market is buying - before it is too late.

That way, the buyer can take on the assets, such as the register and any running sales, and keep the business as a going concern. If the business goes bust, only the creditors will benefit.

Estate agents who have put money aside will weather whatever storms lie ahead; those that have overstretched should consider doing some forward planning and tighten their belts, or sell before it is too late.