Gazumping advice

chile_paul · 29 March 2015 at 7:55PM

Hi all,

I'm hoping for some advice from the wise sage's on the forum (or if not that at least some sympathy

)

We recently found a house that we really liked and knowing that there was a lot of interest offered asking price for it. There were 2 other offers at asking price but whilst neither of those buyers were proceedable (i.e. they still needed to find buyers for their properties) we are able to proceed without selling our house.

Our offer was accepted and we've been proceeding over the last couple of weeks to sort mortgage, surveys etc.

However we heard from the EA on Friday that one of the previous interested parties has now sold their property and has offered 8% above asking price and given the amount the vendor is going to accept their offer if we can't increase ours.

We could increase our offer, but feel conflicted about the way forward. In particular we're concerned that this might turn into a bidding war which we really want to avoid.

I'm also well aware that as we don't need to sell our house we should still be a much better option than a buyer who could well see the sale fall through on their property.

I'm tempted to increase our offer by circa 5% to see if that is enough to convince the vendor that we're still the best option..... I'd really appreciate some thoughts from everyone on the best way forward.

G_M · 29 March 2015 at 8:09PM

There's really little advice that can be given except: it's a b*gger!

* offer to match the higher price (if it exists...). Things might then progress to exchange, and you might buy, feeling somewhat sore about the deal, and wondering if the other buyer existed. Or you might find the price increases again......

* On principle, you could refuse to budge on price. Re-iterate that you had an understanding, and that you are well-advanced on your conveyancing. You might lose the property, they might back down.

* or as you say, offer a compromise eg 5%. And hope that the price does not increase again the day before Exchange.

fishpond · 29 March 2015 at 8:13PM

Game of poker, have they or haven't they.

Enfieldian · 29 March 2015 at 8:20PM

Why do you keep referring to yourself as a cash buyer if you need a mortgage?

Pixie5740 · 29 March 2015 at 8:22PM

Good question.

chile_paul · 29 March 2015 at 8:24PM

Enfieldian wrote: »

Why do you keep referring to yourself as a cash buyer if you need a mortgage?

Sorry, you're absolutely right - poor use of terminology on my part.

What I meant was that we don't need to sell our existing property to proceed i.e. we have no mortgage on our existing property and have sufficient savings for deposit on the new property etc.

All of the other buyers need to sell their current property to proceed.

I've now updated my OP to clarify

T0mmyh · 29 March 2015 at 8:25PM

Because most people have no idea what cash buyer actually means!

T0mmyh · 29 March 2015 at 8:26PM

In reality everyone is a cash buyer... Unless your selling your house for say horses or something

G_M · 29 March 2015 at 8:59PM

How many horses are there to the pound?

and what about foals?

DaftyDuck · 29 March 2015 at 9:06PM

As they say, a foal and his money are soon parted...

silvercar · 29 March 2015 at 9:08PM

Play them back at their game. When you are ready to exchange the other party will be at least 2 weeks behind you. At that point you declare that they have to exchange within 3 days or you are withdrawing your offer. So your greedy vendor's have a choice whether to risk ending up in a chain that may or may not work out or to keep to the deal which they jusged acceptable only 2 weeks ago.