Gazumping - how common is it?

Joannaclaire

Sorry to hear that Dooj :-( Like the sound of the Victorian one you ended up with though!

Although we're FTBs we're lucky to be able to step up a couple of rungs and can afford a larger house that is more a second or third time buyer type of property, so as such we're unlikely to be competing with other FTBs...so woudl have thought that would have made us even more of a good deal.

HthPrk

Just hear yesterday that the offer that was accepted on Thursday morning (full asking price - our house is sold subject to contract and has been since November - so desperate to move) has now been refused cos someone has now put in a higher offer offer (20k more!!!).

Since agreeing sale on our house we've had to pull out of one house cos there was a defective title to it (and we waited 3 months for it to try to be sorted). Now this has happened.

Our buyer has been really patient but won't wait much longer.

Why don't people have principles any more and stand by an agreement? Seems to me most people will lay their principles aside for money.

Jorgan_2

In 14 years as an EA I haven't encountered that many instances of gazumping. Its very frustrating for all concerned, however until there is a change in the law, it will continue. Currently, we have to put forward all offers to a vendor. The introduction of HIPs (sellers packs) actually makes gazumping easier & therefore it will be on the increase.

When putting an offer on a property, make it conditional on the property being removed from the market with all estate agents. This will prevent any new viewings taking place, unfortunatley it won't stop any offers being put in by people who have already seen it. If the vendor or agent refuse to do this, try to find out why. The vendor may have had numerous sales fall thru on him before so will be wary as to withdrawing his property from the market. If there isn't a valid reason, you will have to ask yourself if you are prepared to go thru & spend your hard earned cash on surveys etc when the there may be a chance of the vendor backing out.

tesuhoha

I am currently worried about being gazumped as we have put in a low offer for the house we want and it has been accepted. It is the highest we can go. Someone else has put in a higher offer but they have not sold their house yet and we have so the vendor is going with us. However he is not taking it off the market until it goes to survey and my DH is dithering about which is the best mortgage to have and its 3 days after he made the offer and still nothing has been done.

david29dpo

other posts on this site ask is it rude to put in a low offer, many say go ahead, you have nothing to lose. however, is it these low offers what can cause gazumping?

Tassotti

If gazzumping is coming back (not been seen for years), this is a bad thing. I recently was gazzumped on a property in Stratford, East London, after paying out for surveys, solicitors fees, etc.

Offering a low price can lead to gazzumping, but it is due to the greed of the sellers and the estate agents. If an offer has been accepted (however low), the property should be taken off the market. In fact, buyers should insisit on this. Otherwise, as a buyer, you are a fall back in case other higher offers don't come in.

This is outrageous, and a waste of a buyers time and money.

lush_walrus

Joannaclaire wrote:

No, not offered higher as the owner is no longer speaking to the estate agent we went through and felt as we were in a such good position as FTBs, surely that should be an incentive for the vendor. We offered 98.5% of the asking price anyway (just recalculated it), so figured that was enough - specially as they accepted our offer in the first place.

Percentage of asking price, even though everyone on MSE seems to like quoting them means nothing, some sell for full asking price, some for thousands less. Unfortunately people are greedy and in this case the vendor has not taken the proeprty off of the market and just accepted your offer until (or if) a better offer came along. The other EA, since your offer came in will have been pushing the property harder than ever to get an offer as if they didnt then they would loose their commission. But this all links back to the vendor not wanting to take the property off of the market in the first place.

It is not that common, but it is more common with properties that are on multi agency as although the EA you offer through may take it off of the market, if the vendor agrees then the other EAs will keep it on and push the property hard to get an offer.

IF you are in the position again, get the vendor to take the property off of the market with ALL agents. If they wont do it indefinately, then ask them to for x amount of weeks till survey or something like that.

lush_walrus

tesuhoha wrote:

I am currently worried about being gazumped as we have put in a low offer for the house we want and it has been accepted. It is the highest we can go. Someone else has put in a higher offer but they have not sold their house yet and we have so the vendor is going with us. However he is not taking it off the market until it goes to survey and my DH is dithering about which is the best mortgage to have and its 3 days after he made the offer and still nothing has been done.

If you dont want to loose the property, you must get on with it. This messing around is exactly why some vendors keep their properties on the market till a survey is done. To the vendor the longer the period between offer and survey, the more likely you are having problems in getting a mortgage, you could be still looking at properties or just simply messers for all the vendor knows. Get on with it or you are potentially handing the property you want to the OP!

JennyW_2

as soon as we accepted the offer on our property I took the house of the market and cancelled future bookings already made. It think it's only fair and if someone came along with a higher offer I wouldn't take it. What goes around comes around. Do unto others and all that..... :A

Tassotti

Its fair enough. Buyers waste time, sellers waste time. INSIST that once you have instructed the solicitor and the surveyor has been appointed (ie mortgage approved), the property is taking off the market with ALL agents.

The worst thing that can happen is you arrange all this malarky and then get gazzumped.

Best of luck

Tass (i have sent you a pm)