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.
Types of searches
There are several different types of searches. The main ones are:
- Local authority searches – checking planning and highways
- Water and drainage – to determine who supplies, owns and maintains the water and drainage supplies
- Environmental searches – covers pollution, subsidence and contaminated land.
However, there are other searches, including:
- Chancel searches – to check for chancel liability.
- Flood risk assessments
- Contaminated land searches
And more.
Why are searches 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.
How long do searches take?
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.
How much do searches cost when buying a house?
This 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.
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.
Are searches a legal requirement when buying a house?
If 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.
If you’re buying a house with cash
If you’re buying a house in cash, you are not obligated to complete searches.
However, it’s in your best interest to get them done.
Even if nothing is found, it gives you essential peace of mind.
And in many cases, a problem you didn’t know about will appear. It can save you thousands of pounds.
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.
