Best way to protect myself from repeat gazumping

moneysaverexpect

Hallo there, long time lurker first time etc....

We put an offer in on a house last week, which was accepted, and then rejected again the very next day in favour of a higher offer. I was fairly unimpressed as I was minutes away from paying for a survey. To further complicate things, the person who offered higher than me had previously had their offer accepted (unbeknownst to me), and was in fact gazumped by me. So our vendor had carried out two gazumps in two days. I strongly felt this kind of price negotiating should have happened before accepting either of our offers.

Anyway, the following day it went to best offer at midday, and we won the property. I'm of course aware that the "other buyer" may have been entirely phantom, but we didn't have to increase by much, still feel we got a good deal on the house and would have paid more.

But what to do now? I've obviously zero trust in the vendor at this point, and don't doubt that if a higher offer came in before completion they'd probably take it. The way I see it I have three forms of defence:
1) Home buyers protection insurance
2) A no sale no fee conveyancer
3) A "lock out" agreement, where one party forfeits a sum of money if they walk away, (subject to surveys etc).

The first two seem the simplest way to cover me in the event of another gazump, option 3 would be punitive to the vendor and thus hopefully prevent the gazump in the first place. Although probably more complicated to set up. So one, two or all options? Any thoughts?

Alter_ego

As I understand things, the only way to get that protection is to live in Scotland.

Cakeguts

You can't stop it. You have chosen a vendor who is prepared to gazump buyers. You best solution is to withdraw your offer and find a different seller.

DigForVictory

Or place a bet with Bill Hill?

LittleMrsThrifty

I've never heard of any of these options.

If you really want the house I would instruct a good solicitor (you should have done this already) and ask them to make contact with the vendor's solicitor to request a draft copy of the contract. However, don't do searches or request survey until the draft contract has been received. This will show if the vendor is serious, because it will be costing them money and time to action. If it doesn't come, walk away and you've not spent much at all.

You do need to be ready to do searches as soon as the draft contract comes through. Ditto the survey which can normally be arranged in a few days.

csgohan4

I would walk and find somewhere else, the vendor is playing musical chairs, buying a house is one of the most stressful things in life, you don't a want a Vendor who is playing games to complicate your life

steampowered

I think this is just part of the house buying process. Particularly if you are getting a good price.

You can be gazumped at any point. Perhaps the fact you've been through one round of gazumping has got it out of the vendor's system?

The best protection against gazumping is to exchange contracts ASAP. If you are ready to proceed, get a decent conveyancer (not a cheap conveyancing factory) and ask them to be quick.

AdrianC

Don't offer on houses being sold by the type of git who'd accept a gazumping offer.

kingstreet

Does the vendor need to purchase?

If so, have they found a property and had an offer accepted?

If not, don't do anything nor spend anything until the chain is fully formed. You limit/avoid potentially wasted expense.

They are less likely to upset a sale if their purchase is then reliant on it once the chain is complete.

Exodi

Likely an unpopular opinion, but despite the literal meaning of 'gazump', I always consider gazumping to be raising the price at the exchange stage.

The seller has likely just got over-excited at the offers and accepted them without negotiation - I wouldn't necessarily assume they'll gazump you at exchange.

getmore4less

There was a bit of offer juggling over 2 days that's quick.