House buying - a cautionary tale.

csgohan4

bluefukurou wrote: »

As someone looking to buy their first ever property in the near future, what exactly would you describe as due diligence?

Full building survery at a minimum, old house ? plumbing and electric +/- structural survey, your spending 100's thousands on a house, spending a drop in the ocean over the grandscheme of things to ensure no issues is a bargain to be honest

bluefukurou

csgohan4 wrote: »

Full building survery at a minimum, old house ? plumbing and electric +/- structural survey, your spending 100's thousands on a house, spending a drop in the ocean over the grandscheme of things to ensure no issues is a bargain to be honest

So if I were to find a property that I decided to buy and went ahead with a full structural survey/electrics/plumbing the lot, how much would you expect that to be? In my case, the house will most likely be a terraced or semi detached 2/3 bed somewhere between £100-120k.

If the survey found lot of nasties, I’d just have to write off the amount I paid for the survey and be thankful I dodged a bullet right?

csgohan4

bluefukurou wrote: »

So if I were to find a property that I decided to buy and went ahead with a full structural survey/electrics/plumbing the lot, how much would you expect that to be? In my case, the house will most likely be a terraced or semi detached 2/3 bed somewhere between £100-120k.

If the survey found lot of nasties, I’d just have to write off the amount I paid for the survey and be thankful I dodged a bullet right?

Depends on what your level of risk would be and how much you want to spend, some happy with valuation only, some want more reassurance

Hoploz

clarecooney wrote: »

Anyhow, if you want another cautionary tale - yesterday I got a call from the Estate Agents who are selling it. At first I thought they were phoning to ask me for more information about why we'd pulled out. Our solicitor had told them our reasons but not in massive detail.

BUT NO - the Estate Agent had got the file mixed up and obviously thought I was the next highest bidder from the closing date. She was phoning to let me know that it was back on the market because, she told me, "the buyer's finance fell through".

I couldn't believe what I was hearing. I told her how interesting it was that she was telling potential buyers that because did she realise, she had called the person who had been buying it and I knew for a fact that they knew that our reasons for pulling out were nothing to do with finance but to do with the condition of the property.

She laughed a stupid nervous laugh and got off the phone as fast as she could.

Absolute crooks the lot of them. Still, that gave me a damn good laugh and really hardened my resolve about having done the right thing.

..... I'm just wondering whether you were the second bidder on the list
The first had pulled out before you! :rotfl:

Hasbeen

davidmcn wrote: »

Think you mean "Labour/Lib Dem coalition law" considering it was introduced by the Housing (Scotland) Act 2006. Not aware of any parties with a policy to repeal it.

I wouldn't say that was generally the case. I've found it useful to have any survey provided upfront (before you even decide to view a property), rather than have the English system where it can be weeks down the line before the buyer realises there are defects or valuation issues. It's certainly rare for buyers to do any more than get a mortgage valuation done if their lender insists.

Introduced by the Scottish Government in 2008
https://www.gov.scot/Publications/2013/12/5279/3

Other countries in the Uk got rid of it as it is not beneficial to the buyer apart from giving them a very rough idea of condition and a price estimate?

SNP in power from 2007. And introduced legislation.

davidmcn

Hasbeen wrote: »

Introduced by the Scottish Government in 2008
https://www.gov.scot/Publications/2013/12/5279/3

No, like I said the legislation which introduced home reports was Part 3 of the Housing (Scotland) Act 2006, albeit that part wasn't brought into force until 2008. Here's the report of proceedings from 29 June 2005 with Malcolm Chisholm introducing the Housing (Scotland) Bill and explaining the benefits Home Reports would bring.

Other countries in the Uk got rid of it as it is not beneficial to the buyer apart from giving them a very rough idea of condition and a price estimate?

The other countries never had them in the same form - Home Information Packs in England & Wales didn't include a survey. Northern Ireland didn't have them at all.

Hasbeen

davidmcn wrote: »

No, like I said the legislation which introduced home reports was Part 3 of the Housing (Scotland) Act 2006, albeit that part wasn't brought into force until 2008. Here's the report of proceedings from 29 June 2005 with Malcolm Chisholm introducing the Housing (Scotland) Bill and explaining the benefits Home Reports would bring.

The other countries never had them in the same form - Home Information Packs in England & Wales didn't include a survey. Northern Ireland didn't have them at all.

Ok you obviously think they are great. But my opinion is still the Scottish homebuyers report paid for by the Seller is useless, lots are missed and really its only good to confirm the valuation that is asked for. Buyers if interested should get a more in depth impartial survey. But it appears that many are getting caught out once the property is bought.

dunroving

clarecooney wrote: »

Good question - and I'm still hoping to get the transcript from the home report because our surveyor was himself pretty unimpressed that something so serious hadn't been noticed.
I'm trying not to slander anybody but when I spoke with him, he was deathly serious and really quite horrified by what he'd seen.
The front wall of the house was potentially unsound. And in some places where he ought to have been able to check the condition, the wall had been concealed by the owners by boxing things in with wood so you couldn't see the condition of the wall behind. He found the location of those works to be in themselves suspicious because they effectively made it impossible to see what you needed to without having to dismantle stuff.

Anyhow, if you want another cautionary tale - yesterday I got a call from the Estate Agents who are selling it. At first I thought they were phoning to ask me for more information about why we'd pulled out. Our solicitor had told them our reasons but not in massive detail.

BUT NO - the Estate Agent had got the file mixed up and obviously thought I was the next highest bidder from the closing date. She was phoning to let me know that it was back on the market because, she told me, "the buyer's finance fell through".

I couldn't believe what I was hearing. I told her how interesting it was that she was telling potential buyers that because did she realise, she had called the person who had been buying it and I knew for a fact that they knew that our reasons for pulling out were nothing to do with finance but to do with the condition of the property.

She laughed a stupid nervous laugh and got off the phone as fast as she could.

Absolute crooks the lot of them. Still, that gave me a damn good laugh and really hardened my resolve about having done the right thing.

To offer an alternative viewpoint, if your mortgage company's valuation meant they weren't satisfied the house was worth what you offered, or wanted from the mortgage, then it could be said that your finance fell through. Finance falls through for lots of reasons, including issues related to the valuation "survey".