Is this gazumping / fair?

1122abc

I am selling my flat and have just gone on the market. 

I have found a house on the market on a road that I have been monitoring for the past year. The vendor has not made any offers on their next property yet. 

If someone proceedable offers on the flat, and it is accepted, but then I become proceedable and offer a few days later, is that morally ok (is it gazumping?)

What if I make an offer a few weeks after the proceedable offer? What if the vendor still hasn’t found a property - they might be more tempted to review another offer as they aren’t in a rush  

I have a conveyancer and AIP ready. 

Otherwise, how does it generally work? One can only offer when you are under offer, so it’s just a matter of whoever is proceedable and offers first? Does a vendor ever wait to see if other offers come in? I’ve told the EA I’m very interested in the property but I’m not proceedable. 

mr_stripey

surely the crucial timestamp is when an offer is accepted, rather than made?

So anyone (within reason) can offer, but once the vendor has accepted an offer then that should be the end of the matter. A higher offer accepted after that is gazumping I think?

youth_leader

The vendor might accept your offer before you are proceedable, but might just 'leave it on the table'.

If you are proceedable and offer, and your offer is accepted, you can then ask for the property to be taken off the market. If you have a soliicitor you can give your details to the EA and the Memorandum of Sale can be issued.

Even then, some vendors could be tempted to accept a higher offer - this is gazumping.  I lived in fear of this happening for the six months my conveyance took, all four viewers offered asking price, apparently.  

1122abc

youth_leader said:

The vendor might accept your offer before you are proceedable, but might just 'leave it on the table'.

If you are proceedable and offer, and your offer is accepted, you can then ask for the property to be taken off the market. If you have a soliicitor you can give your details to the EA and the Memorandum of Sale can be issued.

Even then, some vendors could be tempted to accept a higher offer - this is gazumping.  I lived in fear of this happening for the six months my conveyance took, all four viewers offered asking price, apparently.  

Thanks. Is it common practice to leave an offer even if not proceedable? I desperately want this house. 

1122abc

mr_stripey said:

surely the crucial timestamp is when an offer is accepted, rather than made?

So anyone (within reason) can offer, but once the vendor has accepted an offer then that should be the end of the matter. A higher offer accepted after that is gazumping I think?

Thanks. Do vendors typically accept the first reasonable offer? I wonder if it’s common to wait and see what else comes in, especially if the EA knows there are other interested parties. 

gazfocus

1122abc said:

youth_leader said:

The vendor might accept your offer before you are proceedable, but might just 'leave it on the table'.

If you are proceedable and offer, and your offer is accepted, you can then ask for the property to be taken off the market. If you have a soliicitor you can give your details to the EA and the Memorandum of Sale can be issued.

Even then, some vendors could be tempted to accept a higher offer - this is gazumping.  I lived in fear of this happening for the six months my conveyance took, all four viewers offered asking price, apparently.  

Thanks. Is it common practice to leave an offer even if not proceedable? I desperately want this house. 

My view is that if you are not yet proceedable, your offer would need to be at asking price at the minimum. An offer below asking price would just be seen as cheeky in my opinion. 

The question is, whether the EA will even let you view before you are proceedable. When we were looking to buy last year, it was a case of if your house hadn't had an offer accepted, you couldn't even book a viewing. I'm not sure what it's like now though.

dannim12345

Really depends how much competition there is, if no one else is bidding they might be happy to accept and wait for you to sell.  I wouldn’t wait if you love it though but explain the situation.  

Has you properly been on the market long?  Is it likely to sell soon?  If you had loads of viewings booked I would be happier as a seller than than if it has been sat on the market for months. 

Albermarle

. Do vendors typically accept the first reasonable offer? 

The problem with this question is that one persons view of what is a reasonable price, is often different to another's view.

You mention gazumping, but seem a bit confused on what it means.

It is normally where a sale has progressed through all initial stages; offer accepted; conveyancers have done all their work; survey done and you are close to the time of exchanging contracts. Then at the last minute the vendor says they do not accept the price anymore, and demand a higher one. It is seen as unethical but it is legal, as until contracts are exchanged anything can happen. As the buyer you can 1) threaten to walk away and potentially write off all costs so far 2) agree to a higher price 3) negotiate .

1122abc

gazfocus said:

1122abc said:

youth_leader said:

The vendor might accept your offer before you are proceedable, but might just 'leave it on the table'.

If you are proceedable and offer, and your offer is accepted, you can then ask for the property to be taken off the market. If you have a soliicitor you can give your details to the EA and the Memorandum of Sale can be issued.

Even then, some vendors could be tempted to accept a higher offer - this is gazumping.  I lived in fear of this happening for the six months my conveyance took, all four viewers offered asking price, apparently.  

Thanks. Is it common practice to leave an offer even if not proceedable? I desperately want this house. 

My view is that if you are not yet proceedable, your offer would need to be at asking price at the minimum. An offer below asking price would just be seen as cheeky in my opinion. 

The question is, whether the EA will even let you view before you are proceedable. When we were looking to buy last year, it was a case of if your house hadn't had an offer accepted, you couldn't even book a viewing. I'm not sure what it's like now though.

I would definitely offer at asking. I’ve viewed the property already and have had the EA asking me to let him know when I want a second viewing, though I’m not sure what the point is when I’m not proceedable. 

I’ve viewed about 20 houses so far as an unproceedable buyer. 

FlorayG

There's no 'typical' vendor
the last house I bought (during the time they were selling in 24 hours), there were 4 viewings on day one, all offered the asking price, the vendor said I could have it because I saw it first!
A different house I looked at and offered, they came back with "What's your best offer? we have three people want it" so I withdrew because I don't get into bidding wars
Some vendors will promise you and keep the promise, others will promise just to keep you on the hook and then accept a better offer - that's morality, not legality

1122abc

Albermarle said:

. Do vendors typically accept the first reasonable offer? 

The problem with this question is that one persons view of what is a reasonable price, is often different to another's view.

You mention gazumping, but seem a bit confused on what it means.

It is normally where a sale has progressed through all initial stages; offer accepted; conveyancers have done all their work; survey done and you are close to the time of exchanging contracts. Then at the last minute the vendor says they do not accept the price anymore, and demand a higher one. It is seen as unethical but it is legal, as until contracts are exchanged anything can happen. As the buyer you can 1) threaten to walk away and potentially write off all costs so far 2) agree to a higher price 3) negotiate .

By reasonable, I meant whatever is acceptable to the seller. 

Thanks for clarifying what gazumping means.