Gazumped

KimCupcake

Hi,
I wonder if anyone can provide any advice.
I had an offer accepted on a property that was due to go to auction on Wednesday. I have paid all of my broker fees, valuation fees etc and had a call on Friday from the agent to confirm how everything was progressing (offer was accepted 10 days previously) When the offer was accepted the agent advised that the full searches wouldn't be available until 17th July so obviously we couldn't exchange until at least that date however they were available the week before. I then missed a call from the agent at 11:10 yesterday morning, I called back within the hour and was told he was not available, he called me back over 2 hours later to say that somebody had gone in on Saturday, made a higher offer and had exchanged that morning (Monday) in between him calling me and me calling back!
Whilst I realise that there is nothing illegal about gazumping there is something that doesn't ring true about what has gone on here as I don't understand how it would've been possible for them to exchange contracts in a matter of hours, nor do I understand why I wasn't contacted to see if I would've upped my offer (which I would) I had already paid £15000.00 over the guide price and the new buyers offered £5000.00 more than me which is also odd to get that close! The other strange thing is that I received an email less than 15 minutes after they called me back to say it had been sold which was a generic mail shot saying 'sold prior to auction' which must have been prepared before they spoke with me.
Obviously I am extremely frustrated as I am over £1500 out of pocket and have lost the house! At no point did the agents ask if I was in a position to exchange (which I could have) and also the new buyers couldn't have had a valuation done on the property in that time, does this mean they must be cash buyers?
If anyone can provide any advice on if I would have any way of maybe claiming some money back or the best complaint procedure or finding out if something dodgy has happened I would really appreciate it. Thank you!

00ec25

you have not paid £15,000, you offered 15k over an asking price. Yes you have lost the fees incurred to date, but that is always a risk when trying to pre-empt an auction as there is no guarantee it won't still go to auction anyway

you admit that a call was missed, so how can you say you were not contacted?

presumably the agent was then processing the other offer hence the delay in calling you back.

anyway it's all speculation - just move on to the next property on your list. no use crying over spilt milk

csgohan4

not much you can do in England, unlike Scotland, we are at the mercy of gazumpers and gazunders. There is nothing you can claim back I am afraid , chalk it off to experience.

Was it a repo house? if it was, the vendor is obliged to get the best price for this

eddddy

KimCupcake wrote: »

At no point did the agents ask if I was in a position to exchange (which I could have) and also the new buyers couldn't have had a valuation done on the property in that time, does this mean they must be cash buyers?

If they exchanged contracts immediately, they must have been cash buyers.

Often, if an offer is accepted in advance on an auction property, they expect you to exchange immediately (and complete in 28 days).

Obviously, it's too late now, but why didn't you exchange immediately? Is it because you need a mortgage? If so, that makes you a higher risk buyer.

PasturesNew

The buyers could've been cash, and/or they could've even been people who had tried to buy it in the past and were delayed/pulled out as they couldn't proceed. That might be why it went to auction, as the seller was "desperate" - and maybe their original buyer suddenly came into funds.

You may never know how/why it happened.

G_M

It was destined for auction.

That's where the professionals hang out. Developers with cash, who understand property, and often don't bother with surveys etc.

They view a property and make their own assessment of the risks and costs of renovation etc and tthen make a cash offer.

So yes, they can Exchange same day.

You can do this too, but it's not for the faint-hearted - you have to know your onions and be prepared to take some risks.

As for the seller agreeing to guzump you

a) he tried to call you back (presumably to see if you could match the new buyer's price and speed) and

b) a bird in the hand is worth 2 in the bush........