Tricky dilemma - offer on property

hethmar

We saw a property which though in need of considerable work was in the absolute ideal position for us. We planned to rent it until our retirement and then downsize to it. We put in an offer £2,500 over the asking price. We were told by agent they had received 7 offers (over two open days) but ours was highest.

Next day agent rings, feels its fairest to everyone to ask for best and final offer in two days. We went back to look at property with agent who then casually brought up a slight problem with the drainage which goes into the houses opposite and though there was "no need" to have it separated, the lady opposite had brought it up.

So we went home, thought about it, felt as we had put in a decent price and had no chain, we were in with a good chance.

Next day told that they had accepted a "considerably higher offer" from someone who was an "able buyer". Since then we have felt sick with ourselves for not putting in a much better price and securing this property. There are only a few houses in that small road and none which we could afford other than this small one.

We have also realised that best and final offer isnt a concrete deal and anyone could have made a ridiculously high offer and then revised it later on when the deal is in progress and they decide to bring up the works necessary. Were we fools not to go in much higher and done this sort of revision later. Should we ask the agent if they will accept a matching offer or higher offer now? We dont want to gazump but feel miffed with ourselves that we didnt realise any high offer could be revised later, which may be the "winners" have in mind.

mi-key

If you missed out, you missed out - if you now go back and try and put in another offer, what you are doing ( gazumping ) is immoral - it may not be illegal, but how would you feel if you were in the buyers shoes and someone gazumped you ?

What I would do is contact the agent and ask them to keep a note of your details in case the 'able buyer' pulls out or the deal falls through for some reason.

Someone can in theory make a very high offer, then revise it, but its likely the seller would tell them to get stuffed once they start messing about like that.

adr0ck

if your buying a home off a "charity" then its against the law NOT to allow gazumping

eg say a church is selling a property...they have sealed final offers...one of these is accepted (the highest)........contract document process is then started....if someone then comes in say in a months time with a higher offer the the charity has to consider it with a view to accepting it

so if your feeling guilty about just pretend your buying it off a charity

(remember charity starts at home)

hethmar

Fair enough, I do understand the morality in gazumping - in fact that is one of the dilemmas I mentioned. But thinking about it, isnt that what these people have done to us? We put in the highest offer and they have jumped over us?

I have rung the agents and told them that should anything happen to let us know as we are chain free buyers and could proceed immediately. The property was planned to be let to my son and his girlfriend whilst they saved for their own place so it has been an upset all round.

But as I said, it didnt strike us til after that we could have put a ridiculous offer in the second time to secure the place and then back down at a later date and its a bit sickening to think that is may be what will happen now and the seller (who is abroad) will proceed because of the time involved.

I only wish we had had the chance to think it all through before the second offers were made - and it may be of some help for others in same position.

hechizero

I have been in a strikingly similar position to you with a would be property near Winchmore Hill, so I empathise. You have no way of knowing what offers have been made. Once the sale has been properly completed you can find the exact purchase price. At that point you will know if you have been gazumped or just plain lied to. As for you putting in a much higher offer: what is the property worth? If it was undervalued on the market, then by all means go ahead and submit another offer. The seller and the EA should be happy about that. You have nothing to loose.
However if you are competing against property developers, this is a fight you will loose. They factor in the cost of any gazumping to the new seller once they have refurbished. A lousy bunch indeed.
Yes you are right about re-negotiating price after surveys. Consider it a lesson learnt. I am sorry to hear of your loss, but there will be another opportunity around the corner, so be optimistic.

silvercar

You think you were a fool not to go in with a higher offer and then revise later. The seller may very well ttell any buyer that tries that trick to get lost. Just because you think you could get away with doing it, there is no reason to think that other buyers will employ the same low trick.

hethmar

Possibly, but it does seem very strange that they had a first chance to bid and were apparently "considerably lower" than us and then go in after we had made our offer and are now "considerably higher".

I was not contemplating doing that myself, but I wondered if these people were as it was only hours before the deadline that the possibly thousands of pounds cost of new sewerage construction was raised. That is why I wondered why someone who had been considerably lower than us now knowing that the costs would have been increased re the work required would then go in with such a large increase in their offer.

Im sorry but I dont think a seller would give a rats ar** whether it was a low trick or not if they see money on the table.