Advice on gazumping an accepted offer

[tapestro]

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?

[royly]

tmw

[tapestro]

@royly

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

I refreshed the AIP today

[girlmom21]

If I was the seller I'd stick with the cash buyer. If you're offering quite a bit over asking there's a good possibility the mortgage company will refuse to lend that much.

[royly]

good point

[GreenLunchBox]

Good luck, OP! You're doing the right thing

[tapestro]

@girlmom21

If I was the seller I'd stick with the cash buyer. If you're offering quite a bit over asking there's a good possibility the mortgage company will refuse to lend that much.

This is what I'm thinking is the likely outcome too.

I do have a fairly large deposit, so the mortgage is just under 60% LTV which may help a bit.

[PasswordProtection]

@BruceAndNosh

"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

It means proceedable funds within 4 weeks, so it might be in an account where you have to give a short notice to withdraw. No mortgage.

i.e you can complete within 28 days if needed (subject to searches)

[Whitehorsegirl]

When I read this type of thread I understand why our housing market is so messed up...

[MrFirstTimeBuyer]

Don't get your hopes up, waste of time likely. Don't forget that even if the vendors would accept your offer, nothing is stopping the cash buyer to just go back and up his offer. Very likely they have the cash or can borrow the extra bit.

[Richenda]

No harm in making an offer, especially at this early stage before the other buyer has spent money on surveys etc. Must say that, if I were the seller, I’d stick with the cash buyer but it doesn’t hurt to ask.

[tapestro]

I definitely don't have my hopes up. I'm not sure 20k is enough for them to choose my offer over a cash buyer and that's without the other buyer upping their offer. Regardless of what happens, I'm glad I tried at least.

I do feel bad but as PPs have said, it's only a matter of days so it's not as if I've waited until they've spent thousands. Maybe karma will get me one day :)

[tobee]

@Whitehorsegirl

When I read this type of thread I understand why our housing market is so messed up...

Yes but the clue is in the term housing market

[Lightheart]

@tapestro

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".

Wouldn’t the world be a much better place if people actually did what was best for others and didn’t put themselves first quite so often.

[tapestro]

@Lightheart

Wouldn’t the world be a much better place if people actually did what was best for others and didn’t put themselves first quite so often.

Great if things worked like that but it is a transaction after all. Don't hate the player, hate the game.

My personal opinion is that there should be some kind of regulation that binds sellers/buyers to an offer before contracts are exchanged. Far more security for all involved.

[Jkell]

To be gazumped after your offer is accepted is life destroying, I speak from personal experience, you never get over it. I don't think you should of done it.

[coolmum123]

I agree, it nearly happened to us. Luckily the vendor stuck with us but it's a sickening feeling

[moistmingemist]

As someone who received a cash offer at asking price I accepted that, far easier transaction than mortgage and I was sold up and moved within 28 days. Unless the buyer wants them searches etc are all unnecessary so it can be a very quick transaction.

[tobee]



Wouldn’t the world be a much better place if people actually did what was best for others and didn’t put themselves first quite so often.

But who says what's best? And what others? Who says that it's not best for the vendor?

[tobee]

@Jkell

To be gazumped after your offer is accepted is life destroying, I speak from personal experience, you never get over it. I don't think you should of done it.

It's not gazumping though.

[namechanged4it]

@tobee

It's not gazumping though.

Yes it is - Gazumping is when a seller accepts one offer on a property, but then goes back on this agreement and accepts a higher offer from another buyer, pushing the original buyer out of the sale and back into the market.

[Jkell]

Afraid it is, it wouldn’t be if the offer wasn’t already accepted.

”Gazumping is when a seller accepts one offer on a property, but then goes back on this agreement and accepts a higher offer from another buyer, pushing the original buyer out of the sale and back into the market.”

[JugglingJanuary]

@tapestro

i think it's the EA who fucked up here. They should be acting in the best interest of the seller. You had viewed it, they should have contacted you to see if you were interested in putting in an offer before presenting the other offer to their client.

you haven't done anything wrong, the EA has & well, it remains to be seen what the vendor does. But even if the vendor accepts your offer, I don't think they've really done anything wrong as they presumably didn't know you'd viewed the same day.

yes, second viewings before offering are not really happening in this really stupid market. £770,000 for something you've seen once for half an hour. Mental isn't it!!

'Cash buyer' always needs defining - 'have cash' & 'need to sell property to get cash' aren't the same thing! So 🤞🏼They need to sell & don't already have £750000 sitting idle!!

Good Luck 🤞🏼

I have to ask though. What do you do for a job? I'm envious of an income that allows for that mortgage on one wage. Obviously you can ignore me if you don't want to say 🤓

[bluekostree]

Exactly what @JugglingJanuary said

[Twiglets1]

That would be shit for the people whose offer has been accepted but I agree with the above, the EA is mainly at fault here.

They should have encouraged their client not to accept any offer just yet. They should at least have phoned all the other people who viewed the house to say a very good offer had been made and they should present their best and final offers or the house would be sold to someone else.

[TeachesOfPeaches]

The original offer could fall through for any number of reasons so at least the vendor knows you're interested, even if they don't accept your offer straight away or at all.