What to do after being gazumped?

SephirothX

I have just been gazumped on a house purchase I began two weeks ago. Mortgage applied for, survey booked in for Jan 10th, solicitor arranged. I've been informed today that a previous buyer that fell through has come back offering the asking price of £150k. This is £5k more than my accepted offer of £145k. The vendor has not yet accepted their offer.

The estate agent asked me if I would like to up my offer, and I told them I would think about it overnight. But if I'm honest one night isn't enough time to think about upping my offer by £5k or more. I was originally willing to go up to £147k when I negotiated my first offer.

Originally I was thinking it could be a phantom offer to get me to pay more, but in reality estate agent commission on £5k probably isn't worth the hassle. Though it still begs the question why they didn't offer a bit more than me, rather than a whole £5k.

So what should I do now that I've been gazumped? Obviously I am looking at the market again, and there is a couple of similar properties for sale with the same asking price on the same estate but the truth is I do prefer this one hence why I went for it in the first place over the others!

Is it worth me offering less than the gazumper on the basis that I am a first time buyer and have already started the process of buying it and hence can complete faster? Or is it a waste of time offering anything less than matching their offer?

Or, at this stage would it be better to withdraw my offer and come back with a counter offer in a week or two if I am unable to find anything else for a better price? I understand I would be gazumping the gazumper at that point but screw them if they are happy to do it to others.

G_M

Not worth offering less than the other party.

How much do you want this property?
Could you (do you think) find another that you like as much for 145K?

The risk is that you get into an auction scenario and the price rises again, so whatever you decide, put your survey and legals on hold and don't spend a penny more till you are as confidant as you can be that you have a deal.

Pixie5740

I don't know if I'd bother making another offer in your shoes. Either this £150k is a phantom offer or the vendor is the kind of person who wouldn't think twice about letting you be gazumped again further down the line.

SephirothX

There is an almost identical house for sale for £250 less on the same street (this street was built 4 years ago) but that is a mid terrace and the one I was buying is an end of terrace. The mid terrace does have a refitted bathroom, but as the bedroom has an en-suite this wouldn't see much use. There is also another similar property on the same estate priced at £150k in excess of but that one comes with a garage.

Whether I could get either of those for £145k is impossible to say, I suspect not with the latter one at least. I am set on this kind of house, in that estate, so options are limited.

Similar properties in the estate have gone for anything from 143k to 157k over the past couple of years (most of them £143-147k) so the asking price wasn't that unreasonable taking into account 2016 house price inflation. I could match their offer and make it my final offer but they could well counter offer. I don't really want to enter into a bidding war because when the valuer comes and values it under the offer price I'll have more difficult decissions.

pinkshoes

Offer £155k then just before exchange drop your offer to £145k?

Are you sure this is a genuine offer? Is it an estate agent associated with phantom offers?

I would be tempted to do nothing. If they get back to you, then it would perhaps mean there is no other offer.

On the other hand, if the vendor accepts your offer, then is that willing just to accept another, then that would make them flakey.

Do you want to deal with a flakey seller??

AnotherJoe

SephirothX wrote: »

I have just been gazumped on a house purchase I began two weeks ago. Mortgage applied for, survey booked in for Jan 10th, solicitor arranged. I've been informed today that a previous buyer that fell through has come back offering the asking price of £150k. This is £5k more than my accepted offer of £145k. The vendor accepted their offer.

The estate agent asked me if I would like to up my offer, and I told them I would think about it overnight. But if I'm honest one night isn't enough time to think about upping my offer by £5k or more. I was originally willing to go up to £147k when I negotiated my first offer.

Originally I was thinking it could be a phantom offer to get me to pay more, but in reality estate agent commission on £5k probably isn't worth the hassle. Theres no way an EA would do this, they might lose the whole sale for probably £20. They want an easy assured sale not a load of aggro. Though it still begs the question why they didn't offer a bit more than me, rather than a whole £5k.
Because had they offered only marginally more, the vendor probably wouldn't have thought itw as worth derailing the process. They wanted to offer enough to make it worth the vendors time and trouble and risk.

So what should I do now that I've been gazumped? Obviously I am looking at the market again, and there is a couple of similar properties for sale with the same asking price on the same estate but the truth is I do prefer this one hence why I went for it in the first place over the others!
Its a tough call. If you offer more it seems to me the odds are the new buyer will also offer more so you'll be no better off.

Is it worth me offering less than the gazumper on the basis that I am a first time buyer and have already started the process of buying it and hence can complete faster? Or is it a waste of time offering anything less than matching their offer?

I think you'd have to offer MORE. Probably another £4k or £5k.

Or, at this stage would it be better to withdraw my offer and come back with a counter offer in a week or two if I am unable to find anything else for a better price? I understand I would be gazumping the gazumper at that point but screw them if they are happy to do it to others.

Depends how bloody minded you are. If you cant afford £5k more you could still offer it, then guzunder them last minute before exchange, or just pull out. Or you could walk away. I cant see you being successful until you offer what is £10k on your current offer and whose to say they wont do it again even so?

SephirothX

pinkshoes wrote: »

Offer £155k then just before exchange drop your offer to £145k?

Are you sure this is a genuine offer? Is it an estate agent associated with phantom offers?

I would be tempted to do nothing. If they get back to you, then it would perhaps mean there is no other offer.

On the other hand, if the vendor accepts your offer, then is that willing just to accept another, then that would make them flakey.

Do you want to deal with a flakey seller??

I'm not sure at all, but the next poster (AnotherJoe) seems to suggest an estate agent wouldn't do this.

I can't blame the vendor, I mean if I was possibly reluctantly selling my house for £5k less than the asking price and someone came along with a counter offer of the asking price then I would take it, as I'm sure most people would.

AnotherJoe: There is no way I am offering £155k when there are two similar properties on the market for £150k. If I counter offer it will be matching their £150k offer and using the fact I am in a strong position as a first timer buyer with no chain and the process already under way versus a buyer who has already failed to complete on the property once. Even if the other buyer puts in a higher offer there is some satisfaction that I made them pay more. Surely gazundering at the last minute like you suggest would just result in the whole process derailing.

I think what I would like to do is put everything on hold and view these other two properties then make a decission. Although I'm not sure if I want to buy a mid terrace property.

AnotherJoe

SephirothX wrote: »

I can't blame the vendor,.

I would.

SephirothX wrote: »

If I counter offer it will be matching their £150k offer and using the fact I am in a strong position as a first timer buyer with no chain and the process already under way versus a buyer who has already failed to complete on the property once.

There's no harm in your offering to match, but had they been interested in that and thought you were in a strong position, surely they would have given you a chance to match and not just said "sorry you've been outbid, byeee".

SephirothX wrote: »

Even if the other buyer puts in a higher offer there is some satisfaction that I made them pay more.

True, but are they the party at fault, or the vendors? It certainly reinforces to the vendor that there's merit in gazumping people, they might make £10k not £5k.

SephirothX wrote: »

Surely gazundering at the last minute like you suggest would just result in the whole process derailing.

Almost certainly, as i said it depends how bloody minded you are about the process, you might do it simply because you were peeved and have no intention of buying at all. Or regard it as very lucky if that was accepted. Its been done before, I recall someone posting here having done that.

If you have no ill will towards the vendor,a nd £150k is your top bid anyway, then your plan to match the new buyer has merit even if, IMHO, a low chance. You should make it clear its your last and final though.

Good luck, post back what happened.

Cakeguts

What is the parking like? Would it be worth going for the one with the garage?

[Deleted User]

If they're messing you around, I'd be tempted to repay the favour just for the hell of it, as long as it wasn't going to cost me a lot.

SephirothX

AnotherJoe wrote: »

There's no harm in your offering to match, but had they been interested in that and thought you were in a strong position, surely they would have given you a chance to match and not just said "sorry you've been outbid, byeee".

All the estate agent told me was that the other buyers had put an offer in of £150k and asked if I would like to increase my offer. But it does sound like they've accepted it before giving me the chance to match, or maybe they are waiting before accepting to see if I make a counter offer. I can't remember if the estate agent told me they had accepted the offer yet. I was too focussed on the fact I'd been gazumped.

AnotherJoe wrote: »

True, but are they the party at fault, or the vendors? It certainly reinforces to the vendor that there's merit in gazumping people, they might make £10k not £5k.

I would say they're both at fault. The other buyers knew what they were doing - the property is listed as Sold STC. They knew they were gazumping. I don't even look at properties listed as Sold STC, they're filtered out of my RightMove search for good reason. But I guess since they have already tried and failed to buy this property they didn't care.

AnotherJoe wrote: »

Almost certainly, as i said it depends how bloody minded you are about the process, you might do it simply because you were peeved and have no intention of buying at all. Or regard it as very lucky if that was accepted. Its been done before, I recall someone posting here having done that.

If you have no ill will towards the vendor,a nd £150k is your top bid anyway, then your plan to match the new buyer has merit even if, IMHO, a low chance. You should make it clear its your last and final though.

Good luck, post back what happened.

I could be quite bloody minded, people who screw others over deserve to be screwed over themselves, but doing that would cost me financially. I would have to rent for longer and lose money on conveyancing fees.

Why do you think matching the other buyer has a low chance? They already agreed to sell to me, surely any decent person when presented with two identical offers would go with the person they agreed to sell to first. What advantage is there to telling them that is my final bid? That's like saying to the other buyer - offer £1 more and it's yours.