Is this allowed?m Offer the seller £10k more than the 1st buyer?

maz_student

Im applying for a mortgage from HSBC.
In the meanwhile ive come across my dream place. Problem is that its under offer. However, to the best of my knowledge, "under offer" simply means that exchange of contracts havent occured, so perhaps i still have a chance

I want to do the following, and am asking here because I dont know whether its allowed or not...I want to put in an offer aswell, but I want to offer £10k more than the asking price
Does this happen a lot when it comes to house-buying? Im a first time buyer. Just thought I should mention that.

I *LOVE* that place!
Is there anything I can do to be considered as a buyer? I'll do anything (anything legal, that is!)

lincroft1710

It is called "gazumping" and is not popular with buyers athough it is not illegal. However as you do not as yet have a mortgage in place, you're not really in a position to make such an offer and estate agent may well suggest to the vendor that you are not a serious buyer.

PasturesNew

To be considered as a buyer they'd certainly want to see your Mortgage in Principle. Until then you're just another wannabe.

SavingSteve

It's call Gazumping, and yes it is legal.

From your post you seem smitten with this place, and you don't appear to have a great deal of understanding of the housing market (current or past) to be making such a HUGE financial decision.

For starters, the fact that it is 'under offer' does NOT mean that the offer = the asking price.

I could go on...but you're missing so much knowledge of how to buy a house I wouldn't know where to start TBH.

ciano125

SavingSteve wrote: »

It's call Gazumping, and yes it is legal.

From your post you seem smitten with this place, and you don't appear to have a great deal of understanding of the housing market (current or past) to be making such a HUGE financial decision.

For starters, the fact that it is 'under offer' does NOT mean that the offer = the asking price.

I could go on...but you're missing so much knowledge of how to buy a house I wouldn't know where to start TBH.

Harsh, but fair!! To the OP, in this market you really dont need to be gazumping, just find another house, there are plenty to choose from.

aliasojo

SavingSteve wrote: »

I could go on...but you're missing so much knowledge of how to buy a house I wouldn't know where to start TBH.

Which is exactly why this place is such a help to people who are not so well informed.

Everyone needs to start somewhere.

SavingSteve

Oh, agree totally Aliasojo, but no one can give advice based on the situation OP is suggesting. No discussion of what similar places are worth, no idea that gazumping even exists. IMO this is not the stage in ones knowledge curve where they should be even thinking about making offers.

Unless of course OP has loads of money, and £10-£30k lost is no big deal. In which case I'd say, go for it!

456789

Theres lots more fish in the sea - research the housing market in your local area a bit more and then in a few months if you wanted to gazump you would be in a much better position than just jumping in at the deep end now

maz_student

LOL.. thanks for the replies. Some of them were hilarious. I do appreciate the honesty.

maz_student

456789 wrote: »

Theres lots more fish in the sea - research the housing market in your local area a bit more and then in a few months if you wanted to gazump you would be in a much better position than just jumping in at the deep end now

The thing is, I want to buy a 1-2 bedroom flat anywhere in central London
So usually im looking at properties based in haphazard locations all over central london.

When searching online, the first thing I look for is (1) Initial asking price and (2) location. Whats the best thing to do, then? Should I research properties in a particular area in central London, or shall I go to a good estate agents and ask them to give me the lowdown? What would you do if you were me (or another First Time Buyer?)

And this question isnt directed at 456789. If anyone could answer it, it would be great. If not, then no big deal. I just wanted to get people's opinions on this whole situation. (lol, i doubt my question even makes sense because im a bit tired, but i'll just leave it up here instead of editing it out).

Oh, and some background info:

• I have about £10,000 saved up.
• I might be able to get a £200k mortgage, and
• I thought i should just jump at the chance of getting my own place because im also not happy living at home (Parents are constantly arguing and theres a possible divorce).

silvercar

I have about £10,000 saved up.
I might be able to get a £200k mortgage, and

and you are unlikely to be able to get a 95% mortgage.

and you can't afford the other costs like surveys and legal fees and mortgage fees and stamp duty......

and this is going nowhere.

Stay at home, save some money and wait.