How to avoid being gazumped

(14 Posts)
ChilliBeanSauce Mon 31-Aug-20 10:42:11

I have just put down an offer at asking price, which has been accepted by the vendor. I moved really quickly and the same day it came on, I managed to get a viewing and it was verbally accepted. I have just been to visit the property again with a local builder (it needs a lot of work done) and was a very surprised that LOTS of cars were driving by and eyeing up the property (its a cul de sac so it wasnt me imagining things!). The price was really low for the area and the house needs a lot of work done. The estate agent also mentioned that they have had lots of calls since offering over the asking price. I am now slightly paranoid that the EA may advise the vendor of this and Ill get gazumped. How can I try and avoid this ? I am a cash buyer with no chain. Can I offer an initial deposit to the vendor to seal the deal ? Does anyone have any experience ?

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ChilliBeanSauce Mon 31-Aug-20 10:44:07

meant to add.. how can I avoid this without paying a fortune over asking as I am planning to invest a lot into the property..

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KnobChops Mon 31-Aug-20 10:48:11

Cash buyer with no chain paying asking price will likely be more attractive than a chain buyer who needs a mortgage and So on. Especially with future market uncertainties. Just hold your nerve and decide what you’re willing to pay for it. I would also make your offer subject to advertising being stopped, board down, taken off Rightmove etc.

GrumpyHoonMain Mon 31-Aug-20 10:49:26

If you are the only cash buyer you may get a little more leeway for a bit, but expect to be bumped off as soon as another cash buyer who offers way above asking gets into the frame. In your shoes I would move as quickly as possible if I liked the house.

KnobChops Mon 31-Aug-20 10:58:19

Doer uppers are often very attractive, there might also be developers floating around or given a heads up by the EA. Try to not get too emotionally invested, but also say that your offer is subject to it being taken off the inventory today. It’s such a shame in this country that house purchases are so slow and held up by Process.

AdoreTheBeach Mon 31-Aug-20 11:23:34

OP, remember, EA works for the seller. They’re also obligated to pass on offers to them.

Advice above, getting the property off the internet, board down (if you can) And move quickly to exchange will help you. As a cash buyer, you don’t have usual time restrictions placed in you for requirements of a mortgage lender.

I’d suggest paying for expedited searches and ensure the solicitors move quickly

NotSuchASmugMarriedNow1 Mon 31-Aug-20 11:33:34

But they have already accepted your offer so you have nothing to worry about.

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WombatChocolate Mon 31-Aug-20 11:39:44

Have you instructed solicitor and sent their details and your proof of funds to the EA? If not, speak to the EA today about the format they would like proof of funds in.

Often EA won’t remove from tight move or mark as STC until they have received proof of funds and solicitor details.

Sometimes EA take a couple of days to ask for these because they hope a higher offer might appear.

Have you had emailed confirmation of offer accepted? If not, chase for it.

It might not be possible to avoid a higher offer being accepted if it appears in next few days. It’s a Bank Hol so you’re unlikely to be able to contact solicitor or EA today but be on the phone to EA at 8.30 tomorrow morning to follow up on an email sent today asking for;
- confirmation of offer acceptance
- saying you have proof of funds and solicitor details ready to hand over and would like to speak to them to confirm format and next steps.

All you can do is move very promptly and help the EA along the way of these early stages which are needed before you’ll receive the formal acceptance of offer paperwork. Keep stressing you are cash buyer and can complete very fast.

There are no guarantees though, as you know. If it’s popular or underpriced you may have to pay more or lose it.

At every stage, return required paperwork on day received. Make sure your ducks are in a row so you can do this - have stuff ready for ID checks, proof of funds, know who solicitor and surveyor will be. Sales fall through due to slowness - so ensure you have a solicitor who works fast and pay for expedited services if needed.

Let us know how it goes....hope you’ve still got it in a week and have had the official acceptance of offer.

DPotter Mon 31-Aug-20 11:43:50

Notsuch
In English law until the contracts are exchanged either party can pull out - nothing is guaranteed until that point. Either side can loose a lot of money in fees which they have to carry if the other party decides not to go forward, so there is lots to worry about

WombatChocolate Mon 31-Aug-20 11:44:55

Notsuchasnugmarried....sorry but rather simplistic and trusting ....and the kind of approach which leads to disappointment.

You have to be proactive and spot the likely obstacles to this coming to completion and head them off.

A verbal acceptance will not prevent more people looking, making offers and superceding the Ops offer. EAs don’t remove from advertising or Mark STC until certain things like proof of funds, solicitor details received ....and thus may take a few days during which viewings are quite likely. You need to be aware of these risks.

WoolyMammoth55 Mon 31-Aug-20 12:47:36

Hi OP, we were chain-free cash buyer when we bought in September last year.

As others have said, we offered on condition that once we were accepted it was off rightmove, the board was down, it was no longer being marketed. They did want our solicitor's info and proof of funds before they did so, but once we had that sorted it was taken off same day.

There are no guarantees in life and things do fall through, but that's true of all property transactions always. At some point you just have to hope for the best!

Incidentally we did get an insurance product for my elderly MIL when she sold last year - her blood pressure was off the charts and we wanted to calm her down - it was a policy that paid your costs if the transaction didn't complete. You could look into that, for extra peace of mind?

Good luck smile

Austereorange Mon 31-Aug-20 12:52:35

I think you can also get something done for a small cost like a ‘memorandum of intent’ - it’s not legally binding but a bit of moral weight. Both parties sign to say they intend to continue the transaction to completion. It’s still under goodwill but does provide a show of commitment from both sides.

IamwhoIsayIam Wed 02-Sep-20 15:56:29

This is exactly what happened to us. Viewed the day after it came on the market and offered asking price the day of viewing which vendor accepted. All done and dusted in less than a week, but then the vendor received an over asking price offer from someone who hadn't viewed. We are still waiting to know if they have accepted the higher offer (with chain) or our lower offer (chain free). You are wise to prepare yourself for this eventuality!

ChilliBeanSauce Wed 02-Sep-20 20:54:32

Had to pay premium to get the surveyor in for this weekend and hopefully my solicitor will get the memo of sale tomorrow. Really trying to push things forward. May I ask how much more % wise did they offer ?

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