Due diligence on a purchase

bobobski

The more I look into it the more surveys, checks and inspections you can have before you exchange...

Just curious what people tend to require as part of their DD? I have booked in my home buyer's survey (actually I tried to book a structural survey but the surveyors said the property really doesn't need it) and that's it; would others consider getting an electrical inspection, for example?

societys_child

What is it, what are you buying?

kinger101

You need to give more information on the age of the property, and whether it's been modified.

But there's actually nothing wrong with getting a full structural survey done a fairly recent build if that's your approach to risk.

I can't comment on whether I'd get an electrical inspection done on the property you're interested in. I don't know anything about the property, the electrics, or what the vendor has put on the TA6. Meet us half way please.

00ec25

anything less than all possible surveys, searches and inspections is not due diligence, it is merely you flying on a wing and a prayer

"proper" due diligence would require you to:
a) have a full structural survey, anything less leaves room for doubt.
b) The surveyor will cover his a**e by listing a host of things his survey cannot comment on which he "recommends" you have further inspections done on, including but not limited to: electrical, gas, "damp", and building defects the surveyor flags up for example structural engineer's report on "cracks" or works where the vendor cannot provide the relevant building regulations paperwork
c) searches including but not limited to: local authority, environmental/ contaminated land, mining, flood/surface water runoff
d) meet both sets of neighbours, find out who and what they are. Meet their neighbours and find out if your neighbours have a "reputation" or "history" with your vendor
e) visit the property many times and many different times of day and times of the year to properly research the immediate area
f) challenge the reason why the vendors are selling, is that really the truth. What are they hiding.

bobobski

The property is a 1970s build maisonette but the point was less about that and more about people's approach to risk/expense. I for one have never owned a property before and wouldn't even know the metric for "how are the electrics" which makes me think I should get an inspection, but on the other hand I'm not sure I'd understand the report!

Interesting response 00ec25; I wonder how much of that people generally do! I'm doing another viewing this week at a different time of day to the first viewing and with a friend, and will probably do another before exchange. As I say, I tried to order a full structural survey but was told I don't need one; I'll do all searches my solicitor recommends; I'm aware of the seller's reason for selling and it checks out; I haven't yet gone around to the neighbours though...

beedeedee

My friends sold their 9 year old house to a church for a vicar to live in. The church had every survey known to man (and a few more..) done before they would commit.....

Grenage

It depends on the buyer.

If I walk into a house and the whole place smells of paint, I'll assume the worst. If it hasn't been touched in 10 years, I'll be less worried. We only had the mortgage evaluation for our home.

If you have no practical experience of housing, or don't have anyone to take who is such, then I'd recommend getting things surveyed. I'm not sure I'd ever bother with a structural survey unless there were massive cracks, or bowed windows, etc.

Neighbours, though; speak to the neighbors!

pinkshoes

Having seen our buyers surveyor spend two hours glancing at everything in the house, stating the obvious then charging them £1000+, we decided against a survey and did it ourselves.

2.5 years later and the only things we didn't spot would not have been picked up by the survey either. It is not a big deal though...

Davesnave

People will vary in their approach to risk, assuming they see it in the first place.

I don't worry so much about physical stuff that I can sort out myself, like some old-looking electrics, but I'm wary about things that lie entirely beyond my control, like barking dogs, the hovering helicopters from an air base I mentioned recently, or a housing estate going up and blocking the view.

There's a finite number of things which can be wrong with the structure and workings of a property, but an almost infinite range of possibilities for adverse change in a locality. Unfortunately, many of these cannot be predicted or controlled, but perhaps the worst of them can be dodged for a while.

Due diligence for me means research both in the field and on-line. I do look at the physical features of the house, but so far at least, these have held few surprises.

bobobski

Thanks for the replies everyone, this is very helpful :-) I think I'll go with searches/surveys etc that may affect my decision to buy or the value only, and leave more practical checks (electrics, boiler) until after completion as I know those won't change my mind. I think. I hope...

chappers

bobobski wrote: »

Thanks for the replies everyone, this is very helpful :-) I think I'll go with searches/surveys etc that may affect my decision to buy or the value only, and leave more practical checks (electrics, boiler) until after completion as I know those won't change my mind. I think. I hope...

You can go some way to mitigating, those risks yourself, by asking direct questions of the vendor. Like have you had any work done to the property , are the electrics original or has the place been rewired at any point etc etc.
Then make a decision based upon their answers or your assessment of how they answered the questions.
Most importantly use your eyes. Do the electrical fittings look really old, are they in good condition etc. any signs of cracks in the structure, is the place generally in good order, signs of damp, etc.
I wouldn't go as far as looking in peoples private cupboards, but would always make a point of looking into places like cupboards under stairs, walk in larders etc as these are the sort of places that might show up these sort of issues or at least give clues.