Is This Gazumping, & Should I Do It?

SpanglyBex

Hi all,

I wonder if anyone can shed any light on this for me... We are selling our first home, just accepted an offer & are now awaiting survey, searches etc. As you can imagine, we are now keenly searching for somewhere to buy (although can rent or stay with relatives if need be).

In nearly 6 months of keeping an eye on the market locally there has only been one house we have been interested in, which - sod's law - went under offer the week before ours! We viewed it a while back & went as far as putting in an offer, which was understandably rejected as we weren't in a position to proceed. FYI, it was on at £279k having been reduced from 285k, and we went in with a cheeky "just under SDLT" offer!

However, the EA obviously knows we are keen and has kept us in the loop with what's going on. It has gone under offer twice before this, and buyer has dropped out both times - don't think for particularly sinister reasons. Suffice today, the EA has now been in touch to say there is a hold up with the purchase on buyer's side, and if we were still interested there's a chance the seller may be persuaded to go with our lower offer in order to get a quick sale! Apparently it's under offer at just over 270k, and the agent knows the highest we would go is 265k...

I know it's not me that's pushing for this, but my question is a) is this gazumping or otherwise immoral (we would be ousting an otherwise committee buyer)? and b) should we go for it?

I know it sounds a bit daft to be talking about immorality when it comes to houseselling/buying but as I said we're waiting for the survey etc on ours and, well, I'm a big believer in karma!... Also, how much are the agents able to inflate the price, if at all, when talking to me - what if it's actually under offer at a lower figure than ours, and this is just an EA ruse to get a higher commission?

So many questions I know, but I have been visiting this forum for a while now & there seem to be so many incredibly experienced people on here - any thoughts would be much appreciated!

Beatrix_Kiddo

If you want it - put an offer in. I would. It's not as if you have been up to anything underhand, the EA contacted you, and is acting in the best interests of their clients - who want a sale and doubtless could care less who to.

Go for it.

ps from Home.co.uk:

'Gazumping' is the term used to refer to when a seller accepts an offer from one potential buyer, but then accepts a higher offer from someone else. The first buyer is left in the lurch, and either has to offer a higher price or accept that they have lose that home and continue looking. This practice tends to occur in a market when house prices are rising are there are more buyers around than sellers.
The problem is that until contracts have been exchanged the sale agreement is not legally binding. Once your offer has been accepted, either you or the seller can pull out at any time until the exchange of contracts.

chant1l

No agent ever favours another buyer out of friendship. I will put money on it being that you are now the only horse in the race, as the other has had a surprise in the survey, or is renegotiating. I get re offered houses regularly after 2/3 weeks when the buyer is supposedly not "performing".
I now assume that all people act rationally (buyers and sellers) and act accordingly. Put in your offer , but don't feel cornered if a bad survey comes back.

epz_2

you want it buy it, its an asset and worth what somone is willing to pay for it (1). ive seen people offer more than other members of the same family to get a place they want, its not nice but if you can get the place you want cheaper than a random stranger you will likely never meet its hardly a matter to be concerned about.

think about it like this, most clothes and electronics come from far east sweat shops where the workers are in terrible conditions, this woulnt stop people buying them. why should the fact a different group of people who are geographicly closer suffer a much less serious inconveniance affect you either.


(1) and able to pay for it within a given time.

Gorgeous_George

It's the seller who should have the dilemma, not you.

Go back with your original offer and see what happens. I fear you may have made a schoolboy error by letting the EA that you would go to £265K.

Good luck.



GG

ashcarrot

Ask specific qns about whether theres a problem with the survey, did it bring anything up etc. Surely they can't lie (just bend the truth) and at least you'd know that wasn't the reason.

Evaluate how much the property is really worth and offer that (is £249,999 its worth or more) etc.

chant1l

Ask the questions if you wish, but put yourself in the agents position they can ;
a) be totally honest and lose the sale.
b) hide behind the copyright of the survey and tell you nothing (except get your own survey).

.....!

benood

Beware the agent - it is possible that he's just hoping that you coming in with an offer will be the shove that encourages the current buyer to get on with it. If you don't offer he might pull out leaving the field clear for you....

Having said that it's just one possibility, don't know what I'd do in your position but you don't need to feel bad about it being gazumping - you're making a lower offer!

SpanglyBex

So many helpful posts - thanks. Do appreciate this situation isn't technically gazumping as such but I suppose the outcome for the current buyer would be exactly the same! But you're right, it would be silly to let worrying about how they feel get in the way of our dream house.

I should have explained there was a problem with the survey during the first sale but the EA told us at the time (and now) that the problem has since been rectified & the vendor has commissioned a survey backing this up, which we can see a copy of. The second buyer just dropped out the day after their offer - saw another property apparently. So it doesn't seem too dodgy... and anyway, me & the other half are both "full structural survey" kinda people, so would be having this done sharpish anyway, with a view to renegotiating or pulling out if we needed to. I'm a pushover but my OH is in the construction industry & is pretty ruthless!

I understand the hold up at the buyer's end is due to complex legal problems & not so much just them hanging around - think the agent is just fed up of having this house on their books, knows we are interested & can move quickly... although maybe I am being super-naive! . It's easy to feel like they really want us to have it, but I do know it's probably just that no one else is in the frame!

Gorgeous George - take your point about possible schoolboy error; unfortunately couldn't avoid this as it was a second offer we came back with previously, so they know we can go to that if pushed. I won't be pushed any more on it, though - really is final & best, as there's no more money in the pot!

I feel the price is definitely a fair one for things around here so will probably go for it...Thanks for everyone's support - it's nice to know the general view is it's not my morality at stake!