search_by_params uses priority to order the parameters but location and organization parameters don't have priorities so a host can never be found by there values.
Another issue is with nested hostgroups - the search tries to see if a parameter exists in the connected hostgroup or it's subtree but for the case
hg = parent param = example value = parent
hg = child param = example value = child
If the host is connected to the child hostgroup the expected is for the host to be returned for the search "params.example=child"
and not for "params.example=parent" but it actually returns for both.