Nothing beats the feeling of having an offer accepted on the property of your dreams! Especially for first-time buyers, the excitement can make it seem like the hard work is over. However, for thousands of purchasers, this is where the difficulties can begin. The reality of being gazumped is just one of these challenges.
What does being ‘gazumped’ mean?
Gazumping is the term used to describe a seller rejecting an offer they have already accepted. Specifically, in favour of a higher offer put in by another buyer at the last minute. After being gazumped, the original purchaser has no choice but to begin their property search all over again. This can be devastating; however, it is also legal in England and Wales.
What reasons are there for being gazumped?
What can you do to protect yourself from being gazumped?
Understandably, the prospect is unnerving. For buyers, there is not much they can do after a seller accepts a higher offer. But the good news is that there are steps you can take to prevent your transaction from getting to the point of being gazumped.
- Take the property off the market
This may seem obvious, however, it is not always an instant process. Ensuring the estate agent removes the property from the market after your offer is accepted can be key. As it will prevent further viewings and subsequently, higher offers.
- Preparation is key
Get your transaction off to the right start by preparing key elements in advance. Obtaining a mortgage in principle and comparing conveyancing quotes in advance are great measures to take. You will be ready to instruct a conveyancer as soon as the offer is accepted, meaning the legal work can get underway promptly.
- Do your part
Gazumping often happens when a seller does not feel confident that the transaction is not moving as efficiently as it could. Maintaining close communication with your mortgage broker and conveyancer to ensure you are always up to date can be key. Also, completing your paperwork as quickly as possible will help prevent you from causing delays.
- Put it in writing
Exclusivity agreements can be drawn up to prevent the seller from seeking and accepting other offers from a specified length of time. Of course, the seller may not agree to sign it, but they are great to give buyers peace of mind. They also show that the buyer is serious about their purchase, giving confidence to the seller.
Reduce the risk of being gazumped with these tips!
While it is important to remember that nothing can guarantee that you will not experience gazumping, these steps can help reduce the risk. Ultimately, while there is currently no legal recourse, the decision remains with the seller. But in the currently fast-moving market, as a buyer putting yourself in the strongest position possible will help achieve a smoother transaction.
Learn more about Home Move Hub!
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