Would you gazump for 10k above asking?

Dr_john_4

I'm in the situation that I have two buyer's in a good position, with one offer coming through 4 days before the other one. Buyer 1 started at 5k below asking, which was accepted. Buyer 2 offered asking price, which was then also met by buyer 1. All fine, buyer 2 does not give up but offers firstly, 2k, then 4k and now 10k above asking. I want to stand by my word but 10k is a lot of money. Buyer 1 has a small change as they are selling to an investment company, but they have done their survey already. Buyer 2 has no chain, but needs a mortgage (which EA checked is likely to be apporved)
What would you do?

DizzyDasher

My understanding is legally you can do what you like.

I would be tempted to take the Buyer 2 offer, and refund the cost of buyer 1's survey and any legal fees already incurred as a good will gesture (if you are pre-exchange I don't think legally you have to do it, but obviously you are messing them around so I think the least you can do is make sure they're not financially out of pocket). So I would guess somewhere around £1-2k depending on what kind of survey and what kind of lawyers (and whether they've already shelled out to start the searches etc.)

I guess it also depends on how long all this toing and froing has taken. If it's only been e.g. a week and they've just been very fast on their survey, I wouldn't feel too bad about this. If it's been a month it's worse. But in £10k it feels like there is quite a lot of leeway to compensate Buyer 1 if you want to. I didn't quite understand your comment about the investment company: do you mean that you think their sale will still go through, even if it takes them a while to find something else? If so, that would make me more relaxed about accepting the gazump.

Now we will both be flamed for being horrible! But I think that is what I would do. As a buyer I didn't assume it was going to go through until we exchanged (but obviously would still have been upset to be gazumped, but I tried to keep as unemotional as possible about it until we had the contract in place!)

hazyjo

I wouldn't gazump anyone full stop - but that's me, and you asked what we'd do.

A bidding war is another matter. But once someone's had a survey done and actually started the buying process... well, it's very much a case of each to their own.

Maybe try putting yourself in their shoes and think about how you'd feel/react.

Jx

hazyjo

PS How much are we talking overall? £10k on a £500k sale is naff all. On £100k, it's obviously a much larger percentage.

Doozergirl

hazyjo wrote: »

£10k on a £500k sale is naff all.

You're richer than me then!

I don't really think it's a proper gazumping scenario. 4 days after accepting an offer, it's unlikely that anyone has incurred costs. It will be a disappointment, but not a total rip off.

Searches, in theory, could be transferred to the other buyer. Mortgage fees can be transferred to a different house.

I'd judge both offers on their merits. Like DizzyDasher says, you could refund any genuine cost to the first buyer.

hazyjo

lol hardly lol

But I still wouldn't gazzump anyone after 4 days or 4 weeks, nor would I for £10k or £50k.

As I said, each to their own though.

Jx

charltonkeston

As you are not doing the gazumping, if I were you I would try and be a bit thick skinned on this 10k is 10k.
I don’t think I could afford to be that generous as to take a lower offer.
It might be the estate agent has under priced your property.
Nice to have principals and morals but its money we are talking about.

Dr_john_4

Good idea with reimbursing Buyer 1's costs. We are talking 230k instead of 220 so it is a substantial difference. Even so, I wish I wasn't in this situation as it is just stressful for everyone involved. I was thinking for a moment to suggest a contract race but that seems just even more stressful.

malcolmffc

Stick with what you agreed. What if Buyer 1 has a tight deadline for moving out of their current property? Are you prepared to make someone else homeless for the sake of £10k?

Caroline73_2

What happens if you accept the 10k over and then their surveyor values it at the original asking price or lower.

brit1234

I wouldn't guzump, you have your asking price. You should be pleased especially where one broadsheet newspaper is recomending offer 16% below all asking prices.

I think it is a question of personal morals not money.