FTB - Am I gazumping?

ktf2020

We've seen a house we like (finally!) and were shown round by the seller. They mentioned they had accepted an offer but that the buyer was in a chain with no buyer of their own yet. They're keen to move asap as they have developed mobility issues (house haslots of stairs/no downstairs bathroom) and have their bungalow lined up. We are renting and also want to move asap as we have hellish neighbours. We are going to talk to the estate agent to suss out what the situation is, but do you have any advice? I know gazumping is horrible but I'm not sure that is the what's happening - they have a serious reason to want to move quickly and we would be the better option. The house also isn't listed as SSTC etc. We also have a tiny budget so having no chain feels like our only negotiation strength!
Thanks all, this forum has been so helpful.

PJBRFC

The house isn't listed as SSTC as the offer they've received isn't proceedable. I would not consider you to be gazumping as if you didn't offer, the house still wouldn't be sold. 

Falafels

If it’s not listed as SSTC, then put in an offer. Their current buyer isn’t proceedable right now, may not be for the foreseeable future, and if the estate agent’s doing their job they will be looking for other applicants.

ktf2020

Thanks @Falafels and @PJBRFC that's a relief! Can we ask the estate agent what the other offer is? The house was reduced by £15K recently (making it just within our budget) so maybe that was based on the previous offer...

If we get our offer accepted but the other buyer somehow finds a seller this week and gets their paperwork sorted quicker, could the buyer go back to selling to them instead?

I'm finding working out how much to offer very stressful - it's already reduced, a big house for the money and on a street where no houses have really sold in the last 10 years so not much comparison possible. It's probably worth what it's listed at, but we would obviously prefer paying less (especially with economy uncertainty). Any top tips?

Falafels

You can ask the estate agent about the other offer, but whether you’ll get an honest answer is another matter. They’re acting for the seller, to maximise the sale price.

What I would do personally - though others may disagree - is go to the asking price. If they’ve recently dropped it by 15k they probably won’t want to go lower than that, but if something unexpected comes up on the survey then you can discuss it at the time.

Good luck!

pinkteapot

EA won't tell you what the other offer is because there's a chance you'll offer more. Offer what you think it's worth, and a price at which you won't have regrets if you don't get. Stress your position to the EA and see what the response is. 

PJBRFC

ktf2020 said:

If we get our offer accepted but the other buyer somehow finds a seller this week and gets their paperwork sorted quicker, could the buyer go back to selling to them instead?

The vendor can sell to whoever they wish, and if the original offer became proceedable and they are a step ahead of you with regards to any paperwork then they may well go with them. As I imagine you'll both be in the same position regarding paperwork it will likely go down to the highest offer. 

ktf2020

Thanks both! The estate agent claims they've rejected a previous offer at asking price so the current offer is presumably more, but they are stuck in a chain (although estate agent is also selling their house and was saying it's had lots of interest recently). They also have two more viewings booked in for this house...We could go a bit over (£5-10K). This is so stressful, made worse by the house being 2 hours from where we currently live, so no way of swinging by!

steve866

What % deposit do you have? As long as it’s 15% or more you should offer asking price or below to start with and make it clear you are chain free and proceedable.

moneysavinghero

Go in at asking price and highlight your no chain position and desire to move quickly. You can always raise your offer by 5k if its rejected.

Estate agents will always say there is plenty of interest and viewings booked in to try and pressure you into a offer. Does not mean it is true.

Doozergirl

Once you've made an offer, the fog will begin to lift on what is acceptable.  

You aren't gazumping.  If you appear to be serious then you, without a chain, would be preferable to someone with one (and certainly to someone who hasn't sold!).  It's unlikely that any paperwork has been done at all, unless the people involved have been incorrectly advised. 

I think I'd still offer asking price with your lack of chain and see if you can get a counter offer from the vendor.  

It might be worth another viewing with the vendors to establish a better relationship.  Even if you are 2 hours away.