problems with gazumping

toothe

Ok, basically put an offer in for an repo house 4-5 weeks ago, had offer accepted completed all surveys etc. now we had mortgage approved on the property after some slight problems on the survey.
We are due to exchange today (completion friday)
last night 5.30 had a phone call from the estate agents that an higher offer had been put in do we wish to increase ours.
I said i needed to speak with my GF. been sol's this morning and they have put a request to exchange contract today.
now my first thought was !!!!, then i thought they might be bluffing, then i thought surely this far along they wouldnt pull out now.
this ever happened to anyone?

ess0two

This is the consequence of buying repo,offers can be accepted right upto exchange.
Plenty of threads in here about it,time to review your options?up offer or take the hit on costs already shelled out.

toothe

we are limited by what we can up the offer too. also do estate agents use this technique to bluff people?

ILW

Some investors when buying repos let someone else do all the surveys etc (and pay for them) and then come in at the last minute. The seller is legally bound to take the highest amount. As said before buying a repo can be a bit of a minefield.

ess0two

Maybe?but they are out to get best offer for property due to circumstance of sale.
Perhaps you can ask how high above your offer it is?

toothe

asked how high they wouldnt say. And they told people our offer price as well
the house had a sale fall through last minute before and has been for sale for 10 weeks.
my sol, said dont put a higher offer in until they have been informed that another offer has been accepted.

toothe

BTW guys, thanks for the help.
Do estate agents often do this type of thing if there isnt an offer to get us to up ours.
there hasnt been an offer for 5 weeks and then there is an offer 1 day before we exchange. prolly happens a lot just seems a bit of a ball ache.

ess0two

toothe wrote: »

asked how high they wouldnt say. And they told people our offer price as well
the house had a sale fall through last minute before and has been for sale for 10 weeks.
my sol, said dont put a higher offer in until they have been informed that another offer has been accepted.

Its quite possible that they may favour your offer over the other due to the position you are in.
If the other party requires a mortgage etc,then its possible they will proceed with you.
If its cash?dunno....best stick to what your solicitor has said.

Best of luck.

toothe

thanks, ill let you know what happens. can see this being an expensive day

toothe

good news, estate agents rang and said we no longer need to increase our offer.
just want the contracts signed now

chickmug

toothe wrote: »

also do estate agents use this technique to bluff people?

NO why would they?

They want you to exchange ASAP to get the commission. Better than a new sale starting off which may delay their commission cheque for another month or so or it may go wrong.