Gazumping is when a seller accepts a higher bid from another buyer, even after your initial bid had been accepted. In England and Wales, there is no law that prevents the seller from accepting another offer after they have accepted yours.
Gazumping can happen at any time during the buying process. It can happen on the day your offer was accepted or it can happen further along the buying process, as long as the contracts haven’t been exchanged.
How do you reduce your chances of being ‘Gazumped’?
To reduce your chances of being gazumped, there are a few things you can do:
Make a conditional offer – When you place an offer on a property, you can request that your offer is conditional on the property being taken off the market. Although your request may not be accepted, it will show that you are serious about purchasing the property and it will help you reduce the chances of other buyers placing a higher bid.
Make preparations – It’s best to be prepared before you place your offer by getting your principle mortgage ready and arranging the conveyors. If you are selling your current property, make sure that it is on the market and ideally only make a bid after you have received an offer on your current property.
Be enthusiastic – By showing enthusiasm for the deal, the seller will know that you are willing to have the deal moved forward. This can reduce the chance of them taking other deals and they will be expecting this procedure to be done quickly.
What if I have already been gazumped?
Unfortunately, these things can happen. However, the main thing to know is where you stand financially in case you may end up in a bidding war against another potential buyer. You should calculate the maximum amount you can comfortably and willingly bid so that you are ready should the unexpected happen.
About Stuart Mosley
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.
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