Ways to avoid gazumping with your property sale or purchase
With the property market heating up, gazumping is becoming all too common as demand outstrips supply.
In this article, we explain what gazumping is, and – most importantly – how to avoid it.
What is gazumping?
Gazumping is when a seller accepts a higher offer from another buyer after having already accepted one.
Between accepting an offer and exchanging contracts, a lot can happen, so it’s important that both parties understand that neither side has a legal obligation until they have signed on the dotted line.
Whilst initially attractive on the side of the seller, gazumping could actually delay your sale, cost you more money or result in a fallen-through agreement in some cases.
Top tips to prevent gazumping
Look for the best mortgage rates
Knowing your options and being pre-approved by a lender shows you are a serious buyer, and a more reliable option than a gazumped offer that would only end up costing the seller.
Develop a good relationship with the seller
Having a good relationship with the seller is key to staying in their mind.
This means getting things done quickly and efficiently, as well as communicating any changes as transparently as possible.
Highlight why you’re a good candidate
Are you a first-time buyer? Paying cash? Or buying without a chain?
The less likely the sale is to fall through, the less likely you are to be gazumped.
Ask the estate agent to mark the property as sold
If the estate agent hasn’t marked the property as Sold Subject to Contract (SSTC), it’s a good idea to ask them, as it will minimise attention from other parties.
Need advice from a professional on your next sale or purchase? Contact our team today.
This article was originally published by BriefYourMarket and is reproduced here with their permission.
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