Property searches are thus an essential part of buying a house.
Like insurance, they cost money, but they can also save you much more.
But how much money? And what can alter this cost?
Read on to find out.
What are searches when buying a house
Searches are a set of investigations that your solicitor does into a house you’re buying.
The goal is to find out everything possible about the house.
That way, you can be informed about any potential issues that will come up in the future.
Searches for cash buyers
Cash buyers can buy a house without searches if they want to.
After all, they don’t have to reassure a bank that your property meets the requirements for their mortgage.
However, most property experts strongly recommend that cash buyers still pay for searches. It spares them from surprises that devalue the property later on.
The three main property searches
1. Local Authority Search
A local authority search is likely the first type of search your conveyancer carries out. This involves contacting local authorities and checking things such as:
- Planning restrictions or permissions on the property
- Highway issues. For example, who is responsible for maintaining the paths and roads connecting the property
- Restrictions on development (these might be down to restrictive covenants or local laws)
These checks may reveal surprises, such as extensions to the property without planning permission or activities you are not allowed to do (for example, cutting down a protected tree in the back garden).
Other smaller details often involved with a Local Authority Search are:
- The installation of a boiler
- The rewiring of your house
- Building control issues
- Pollution
- Rail schemes.
Depending on the severity of the findings and what implications they have on you as the homeowner. You may decide that you are no longer interested in the property or that you want to reduce your offer significantly.
2. Water and Drainage Search
The second type of search covers everything related to water and drainage.
While this may not be the ‘sexiest’ of all the searches, it can still have real implications for you once you move into the property.
A water and drainage search looks at, amongst other things:
- How the property is charged for water services
- Whether you are connected to the main water supply
- Where precisely the water mains are
- Whether there is a public sewer in the boundaries of the property
- Which water companies are involved.
Not only can these findings affect your monthly outgoings (such as how you are charged for using water), but they may also affect your ability to extend the property if there is a public sewer in close proximity.
3. Environmental Search
Another important search that your conveyancer carries out is to examine the environment surrounding your property.
This usually includes details such as:
- Flooding
- Landslides
- Contaminated land
- Radon gas hazards
- Subsidence.
If any of these elements are present, or if the local area has a strong history of these things, then it is important that you know about it.
After all, landslides or subsidence can impact your safety within the property. Therefore, you may opt to back out of the purchase altogether.
Why searches are needed
Searches ensure you’re well-informed about the house you’re buying.
A few examples of problematic search results include:
- Flooding history
- Subsidence issues
- A debt exists on the property (which may become your problem)
- There is an ongoing dispute with a neighbour
- Japanese Knotweed or similar invasive plants
- A new development may interfere in the future.
These all impact the price you’ll pay for the house.
Getting the results from searches thus often prompts the buyer to renegotiate the price based on the findings or even pull out of the sale.
It can save you thousands in the long run. You might even discover a problem that’s a dealbreaker and causes you to walk away.
Search time frames
On average, searches take between 2 – 6 weeks.
However, average is a relatively loose term in property. After all, there are many different property types, locations, issues, etc., to factor in.
So, searches may take just a few days or up to one month.
Your solicitor must contact several organisations during this time to gather all the information needed. This could include:
- Local councils
- Water bodies
- Private contractors
- Previous owners
- Neighbours.
And more.
In extreme cases, the hold-up caused by searches can even cause house sales to fall through.
Costs of searches
The costs of searches depends on whether you use a solicitor or conveyancer to conduct searches.
The average price when paying a solicitor to do searches is £300. And for conveyancers, it’s slightly cheaper at about £290.
Remember that the administration fees involved with completing the checks are far lower than £290 or £300.
But you’re paying for all the time your solicitor spends carrying them out.
Who pays for searches when selling a house?
The property buyer typically pays for searches. They usually pay their solicitor a fee upfront, which includes provisions for covering search expenses.
Implications of searches of costs of buying a house
If issues are found in searches, then the search cost can become relatively insignificant.
After all, what matters now will be:
- The new selling price
- The cost of fixing issues.
When are searches completed?
You usually get searches completed as a buyer after your offer is accepted.
This is the point where you’ll start researching the property. Ideally, your seller won’t have hidden any details from you.
But in many cases, they have. It’s then up to you to renegotiate the price if you spot any problems – or walk away from the deal.
When searches are a advised
When buying with a mortgage
Searches are almost always required if you’re using a mortgage to buy a house.
Your lender will demand them. And if you refuse to get searches done, they will probably revoke their mortgage offer.
Ways to keep down the cost of searches
You can reduce your search costs in several ways if you’re on a tight budget.
Just make sure you aren’t cutting corners, as this can cost more in the long run.
1. Cut unnecessary searches
You could speak to your solicitor about which searches they’ll complete.
If there are some you feel are unnecessary, ask about cutting these out and thus renegotiating the price.
2. Shop around
Make sure you compare quotes from several solicitors. You could find a firm with slightly better prices than another.
Just ensure you don’t compromise the quality of the searches – as this can be far more costly if mistakes are made.
3. Use fixed-fee conveyancing or discounted services
Some firms offer fixed-fee conveyancing. Others could offer discounts in certain situations.
For example, some solicitors offer a lower rate for first-time buyers.
