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Advice on gazumping an accepted offer
108

tapestro · 03/08/2022 15:16

Hi everyone,

I viewed a house I really liked yesterday. I just rang the estate agent to get a second viewing and was told the seller accepted an offer yesterday evening.

I asked a bit further and was told that it's cash buyer and they offered asking price (£750k). The EA basically said to me that it's very unlikely it falls through or that another offer would beat it.

However, I am still thinking about making an offer. I hate the idea of gazumping people but I don't want to regret not trying and it's hardly been much time since their offer was accepted. It's rare that this type of property becomes available in my area.

The price is at the top of my budget but I think I could to stretch to £760k or maybe even £770k. I have no chain and approx a £300k deposit, if relevant.

I'm trying not to get my hopes up as I expect a cash buyer may just be able to gazump me even further, but would like to offer something.

Does anyone have any guidance on how best to position myself here? Could I go in at £755k or £760k?

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ClaudiaWankleman · 03/08/2022 15:19

I think, given the circumstances (you viewed and offered on the same day so it's not like you waited for the opportunity to gazump someone) it's fine to make an offer. If you don't think the agent will pass the offer on, stick a note through the door asking for them to contact you.

Ultimately though, the owner may prefer the cash offer and it goes nowhere. That's just how it goes.

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ClaudiaWankleman · 03/08/2022 15:20

As for price - I'd just offer the amount you can afford that, if you lose it at that price, you'll not have any regrets on.

I.e you like the house enough that you're willing to pay £665k for. If it went for £670k, you know you'll be able to find something better at that price so you won't be disappointed.

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Roselilly36 · 03/08/2022 15:22

You could try, as it’s early days, but I would imagine the vendors would prefer the cash buyer to be honest, assuming that’s genuine and they have shown the EA proof of funds.

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WhoMe231 · 03/08/2022 15:24

It wouldn’t be you gazunping, it would be the house owners decision. You are just putting an offer in, what they decide to do with it is their business 🤷‍♀️I don’t think there’s any harm.

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tapestro · 03/08/2022 15:25

Thank you. I've read that the estate agent is obliged to pass on the offer, although admittedly that's just what I've seen online and haven't looked any further into it!

The fact that they're cash buyers is what's making me want to go in a bit higher than just 5k more. I'm going to take another look at my finances and see if I can get to £770k. Anything more than that and I'll have to step away.

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Minimalme · 03/08/2022 15:58

I wouldn't put an offer in - the EA has told you the cash offer is u likely to fall through and a higher offer is unlikely to beat it.

And if you did get it? It would be a bitter victory since presumably the first offer people really want it too.

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tapestro · 03/08/2022 16:06

Minimalme · 03/08/2022 15:58

I wouldn't put an offer in - the EA has told you the cash offer is u likely to fall through and a higher offer is unlikely to beat it.

And if you did get it? It would be a bitter victory since presumably the first offer people really want it too.

Bitter for me or for them?

Like I said, I don't like the idea of ruining someone's dreams when they've already had an offer accepted. But it's been less than 24 hours, it's not like I'm going in when they're 3 days from exchanging. I do feel bad but at the end of the day, I have to do what's best for me. I'd feel worse if I didn't.

If I don't get the house, then I don't get the house. I'd understand the reasons why. At least I tried and won't sit around thinking "what if".

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PutinIsAWarCriminal · 03/08/2022 16:09

I think you should put in an offer, an like you said, the extra £10k is enough to make the owner turn their head. The house is still on the market.

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tobee · 03/08/2022 16:12

Minimalme · 03/08/2022 15:58

I wouldn't put an offer in - the EA has told you the cash offer is u likely to fall through and a higher offer is unlikely to beat it.

And if you did get it? It would be a bitter victory since presumably the first offer people really want it too.

I don't think an emotional response like this comes into it.

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Highfivemum · 03/08/2022 16:32

Put it the max you can afford. You can’t get into a tit for tat battle with the other buyers. If you can go to 770 out it forward. Then that’s ur best and final offer.

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wimbler · 03/08/2022 16:40

tapestro · 03/08/2022 15:25

Thank you. I've read that the estate agent is obliged to pass on the offer, although admittedly that's just what I've seen online and haven't looked any further into it!

The fact that they're cash buyers is what's making me want to go in a bit higher than just 5k more. I'm going to take another look at my finances and see if I can get to £770k. Anything more than that and I'll have to step away.

The EA is legally obliged to put forward any offer they receive to the buy and confirm with both parties, in writing within 2 working days. Their job is to get the best price for the vendor, so by saying to you it's not worth making an offer, they are not fulfilling their obligations to their client. I would be furious as a client if my agent talked a buyer out of making an offer.

What happens with your offer is at the discretion of the vendor. they can decide(and may be influenced by the agent) but ultimately if they want to go for a buyer who is offering more money and the risk of the transaction taking longer due to mortgage applications etc then that's their decision.

you'd also be first in line should the other offer fall through.

long and short of it, if you want to make an offer, then go for it, but make sure you can follow through on the amount and have your financial ducks in a row - AIP, affordability etc.

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takeitandleaveit · 03/08/2022 16:43

That's not gazumping.

True gazumping is when (shortly before exchange of contracts) the people you are buying from accept a higher offer, and tells you that if you still want to buy their house you will have to match the other offer they've had for £££ more, and if you don't cough up then you lose the house.

ExH was an estate agent and was often asked by people to do this sort of thing.

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BruceAndNosh · 03/08/2022 16:43

"Cash offer" can mean different things.
It doesn't always mean that the potential buyer has three quarter of a mill sitting in their bank account.
I made the mistake of accepting a cash offer thinking that's what it meant, but to the estate agent it means the buyer does not require a mortgage, but they may well still need the proceeds of their house which is still in a chain

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Ihavekids · 03/08/2022 16:51

Someone just did this to us. We had our offer accepted, then 3 days later someone else offered 15k more. The agent told us and we matched the offer. They stuck with us because we weren't part of a chain, although we were offering same price.
Honestly I think it's poor form to offer. You are trying to take what was given to someone else. But I do understand this happens.
If you do intend to offer, find out more about the seller to try to make your offer more attractive. For example, maybe you can move quickly or slowly, whichever they'd prefer. It's not just about the cash, there's always other factors.
But truthfully, I really do think it's poor form, and bad karma. Find your own place!

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tobee · 03/08/2022 17:04

I know it's an emotional thing buying a house but I don't think it's been "given to someone else". There's not been a legal exchange. Plus it's up to the vendor to choose which offer best suits them. They might well go with the original offer. But what if they need the extra money?

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royly · 03/08/2022 17:08

We offered 50k plus in similar circumstances & no chain, big deposit. Lost out 3 times to cash buyers. Having said I sold to a cash buyer who offered less than others as I wanted it done fast.

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SuperCamp · 03/08/2022 17:09

It’s worth a try.

What do you have to
lose. But act immediately.

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royly · 03/08/2022 17:10

Cash offer" can mean different things.
It doesn't always mean that the potential buyer has three quarter of a mill sitting in their bank account.


It should mean this & sellers can ask for proof of funds.

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royly · 03/08/2022 17:11

Oh & I didn't count our offer as gazumping as the cash buyers put the offer in before best & final.

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pennysarah · 03/08/2022 17:14

I think you'll need to go in a fair bit higher and do it immediately. Just offer the max you'd be prepared to pay. We had an offer accepted and then another offer came in immediately after and it went to best and final. We offered more but they accepted the lower offer as less risky being a cash buyer and there wasn't that much in it. If they'd been a bigger gap maybe we would have won?

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Sswhinesthebest · 03/08/2022 17:20

You’d already viewed before the offer was accepted. The estate agent should have told you that an offer had gone in before it was accepted. EA hate bidding wars but in this case I think you are right to put an offer in. The sellers could be really upset that they haven’t been told the true picture. Gazumping later would not be honourable though.

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cockandball · 03/08/2022 17:23

Ringing up the next day for a second viewing is NOT how you buy an amazing house that is rare to come up. If you like it,.get on the phone to the EA immediately to stop any more viewings with your best.offer. Do Not Gazump!!!!!!

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tapestro · 03/08/2022 18:02

Thanks everyone.

I have checked over the finances and put an offer in at £770k. This is my best and final, I don't have the funds to go any higher and to be honest I don't think the house is worth more. I've given it my best shot and if the sellers want a cash buyer then I'll move on, but I'm hoping 20k is enough for them to at least consider.

I have a mortgage AIP and proof of funds for the deposit.

I appreciate now that I should have offered sooner, or at least made it clear I was definitely going to offer, but it's a lot of money so I didn't want to rush it. I know now that approach doesn't really work in this market!

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SuperCamp · 03/08/2022 18:08

Good luck, OP!

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royly · 03/08/2022 18:16

@tapestro out of interest when did you get your aip as rates are now higher & will be even higher tme.

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