GaZumping! What is legal and what is not?

PaulyH

My partner and I have had an offer accepted on a house, we're currently homeless living with family and the house is bereaved estate with no chain. We have had our offer formally accepted but the estate agents say they won't remove it from the market for at least 2 weeks as they want to to get an extra £6k for it.

They also have a viewing on it on Friday with another couple. I was under the impression viewing houses where offers had been accepted were not allowed. As the agents are so open about it I'm now totally unsure. I cannot wait a fortnight to start the ball rolling on a mortage, and solicitors etc so not sure what to do.

Our offer is accepted and we want to move. Are we totally at the mercy of the Estate Agents?

princessamy86

It's allowed, there's nothing to stop anybody putting in a higher offer until you exchange contracts. I'm a bit puzzled as to why they would tell you they are looking for another £6k when your offer has been accepted? I could see it being said during negotiations to get you to up your offer, but the vendor is obviously happy with it or they wouldn't have accepted. I think the best course of action would be to ask the vendors not to accept any more viewings once your survey has been done, and then get the survey done asap. The situation is pretty odd that they are being so open with you about getting the extra money!

ILW

In the opening post at appears they have not arranged a mortgage as yet, if that is the case I can see why the EA is still marketing the property.

PaulyH

We met them on Saturday to go through our mortgage details. We showed them our AIP which they were more than happy with. I don't want to start incurring fees on a mortgage arrangement for a house I may very well loose.

princessamy86

You're at the mercy of the English system, sorry PaulyH. It could happen with any purchase, it's completely normal for agents to market properties until the survey has been done and the mortgage has been agreed.

sandiep

Fees on mortgage arrangements are usually transferrable if this purchase falls through. Talk to your mortgage company/broker

pie81

Hiya, one sort of "deal" that is often done between buyers and sellers is that the buyers start incurring fees towards the purchase (eg booking in the surveyor) and in return the seller takes the house off the market.

that way the buyer reduces the risk of being gazumped having spent fees and the seller reduces the risk of taking the property off the market only to find the buyer walks away/gazunders.

why not say to the EA that you want the property to come off the market as soon as you have incurred fees (lender/surveyor fees), as this shows you are serious about the purchase.

if they won't agree to that then to be honest it shows they are not really serious about selling to you.

silvercar

Sounds like they have only accepted your offer if they don't get a better one in the next 6 weeks. Seems like they have been open and honest with you. No point incuring costs until they tell you that they will accept your offer and stop marketing the property. If that means a wait of two weeks then so be it. Nothing to stop you looking at more properties and withdrawing your offer if something better is seen.

Fire_Fox

PaulyH wrote: »

We met them on Saturday to go through our mortgage details. We showed them our AIP which they were more than happy with. I don't want to start incurring fees on a mortgage arrangement for a house I may very well loose.

Have you asked for the property to be taken off the market as a condition of your offer?

vegasbaby100

I agree with Fire fox you need to speak to your EA and tell them that you will pull your offer unless the house is taken off the market!

We viewed a house that had an offer already on it when searching the EA explained to us that they had to keep marketing the property as part of a dead persons estate and they needed to try to get as much as possible for the estate. Tehy said similar to repo maybe worth checking if just something like that. We did not put an offer in as did not think was right (worried about house KArma)

Cannon_Fodder

Was your offer £6k below asking price...?

Can understand their wish to try for asking price, if its new to the market.

They may be trying to scare you into offering more to secure it. Don't fall for that. You could try the "withdraw from market, or our offer is withdrawn" approach if you don't mind losing the house, or just wait a couple of weeks.

You are "making" £6k in two weeks, i.e equivalent to £156k per annum...!!!

Depends how much you want the house at the end of the day, though...