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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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Highfivemum · 04/08/2022 09:29

You have done right. The EA should have informed interested parties and if a big interest gone to sealed bids in order to get the best price for the sellers. Just wait and see but at least you have it on the table even if they don’t accept. Good luck

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TitaniasAss · 04/08/2022 09:38

I had an offer on my dream home accepted. Then they accepted a higher offer the next day that I just couldn't match. It was my 21st birthday and I was devastated. 34 years later it still upsets me so I really need to get over it!

However, I didn't blame the person making the offer, I just thought that the vendor was an arsehole for doing that. To me, it's sharp practice and an agreement should be honoured, though I know that's very old fashioned.

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sst1234 · 04/08/2022 09:53

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.

Huh?

what kind of advice is this?

OP, buying a house is like anything else. The strongest bidder wins. You don’t need to feel guilty about anything. If you want it, offer more.

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tapestro · 04/08/2022 10:10

JugglingJanuary · 04/08/2022 01:10

@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 🤓

Thank you. I worry that I didn’t make my interest quite clear enough to the EA. I did let them know I really liked the place and wanted to think about it a bit more (it was one of the first properties I saw) but maybe I should have outright said I was considering making an offer.

I totally agree that the lack of second viewing seems ridiculous, although I understand it’s how the market is working at the moment. Hundreds of thousands for somewhere you’ve barely seen!

I work in corporate law. It is well paid but long hours and very stressful!

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tapestro · 04/08/2022 10:17

Thank you everyone, I really appreciate all the advice.

Still waiting to hear back about the offer. EA said they understood why I was putting it in (told them I didn’t want to regret anything etc etc) but they were inclined to believe the vendor would stick with the cash buyer. I think the EA will push them towards that offer as it’s a bit safer and the commission difference wouldn’t be massive.

If I don’t get this one, then hopefully something else will come up and the EAs have now seen I’m in a position to make a serious offer for what I want. I’ll ask to be first to view any similar properties.

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tapestro · 04/08/2022 10:33

I was also going to say that the EA told me the sellers had another buyer pull out a few weeks ago as their chain fell through. Leads me to think they will be keen to have a straightforward sale from a cash buyer this time.

I did however say I’d be happy to buy the previous searches, if possible. It suits me to move as quickly as possible, if that’s what they are looking for.

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fyn · 04/08/2022 10:57

People need thicker skin if somebody gazumping them has destroyed their whole lives. I’m sure it is frustrating but at the end of the day it’s a business transaction in which the seller is entitled to get the best price for their goods.

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coolmum123 · 04/08/2022 12:25

It surely depends on how long they have been looking, how many times it has happened to them or sales have fallen through. Its very frustrating more so in the current environment where you see house prices rising quickly and interest rates are rising too, school places dependent on a move. These things lead to a lot of stress so I can understand emotions run high. Not easy to see it as a cold business transaction.

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kewseea · 04/08/2022 14:46

fyn · 04/08/2022 10:57

People need thicker skin if somebody gazumping them has destroyed their whole lives. I’m sure it is frustrating but at the end of the day it’s a business transaction in which the seller is entitled to get the best price for their goods.

It's ridiculous to see this as a normal business transaction.

Gazumping is illegal in other places for a reason. It could not be more morally wrong for this practice to happen.

And of course it destroys peoples lives, I got gazumped on a dream property, it utterly destroyed my life, and left me without a home for another 5 years. I had limited money, needed to be within a certain area to keep my job and partner.

I could not be more miserable during those 5 years, not just that what I got wasn't anywhere near as nice so everytime I pass the property I feel sick and resent the people who did that to me.

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Blossomtoes · 04/08/2022 15:03

If I’d accepted an offer for my house I wouldn’t even entertain another one but I accept that my scruples are considered quaintly old fashioned in the current world.

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Becky6758 · 04/08/2022 15:08

Good luck.

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tobee · 04/08/2022 15:35

it's not gazumping until the vendor accepts the offer.

It's still a business transaction. Of course people get emotionally involved in purchasing a house. But there's not any mechanism in place to say who's going to be most emotionally affected by the sale going to one potential purchaser or another. Why does the potential purchasers so called emotional (or even practical) needs go above everyone else? What about the seller? Who says they wouldn't find £20,000 a huge difference to their lives? In any other circumstances people wouldn't turn down £20,000.

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tobee · 04/08/2022 15:38

Blossomtoes · 04/08/2022 15:03

If I’d accepted an offer for my house I wouldn’t even entertain another one but I accept that my scruples are considered quaintly old fashioned in the current world.

Even if as the vendor you really needed the £20,000? I think because figures for house sales are so big anyway compared to most other things that most people buy you can kid yourself into thinking what's £20,000 on top of £750,000?

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kewseea · 04/08/2022 16:24

tobee · 04/08/2022 15:38

Even if as the vendor you really needed the £20,000? I think because figures for house sales are so big anyway compared to most other things that most people buy you can kid yourself into thinking what's £20,000 on top of £750,000?

Well easy for you to put a price on ruining someone else's life.

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girlmom21 · 04/08/2022 16:31

Well easy for you to put a price on ruining someone else's life.

So dramatic...
It's one day after the had their offer accepted and it's a £750k house being bought in cash. That's not the kind of person whose life will be ruined if the purchase falls through.

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tobee · 04/08/2022 16:31

But why is it ruining someone's life? In every case it's the prospective buyers and not the vendors? What about vendors who are selling up because of bereavement or whatever?


What would the prospective buyer who lost out have done if the vendor had gone with someone else the day before? Or it had never been put on the market.


For a start, I'd certainly say there's a big difference between how one feels about losing out on a deal the day after an offer was accepted and some time down the line when contracts are about to be exchanged.

Your letting your personal experience colour your thinking on someone else's situation.

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tobee · 04/08/2022 16:33

"
Gazumping is illegal in other places for a reason. It could not be more morally wrong for this practice to happen."

It's not illegal here though. I can think of many more morally wrong things. Ridiculous

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Blossomtoes · 04/08/2022 16:37

Even if as the vendor you really needed the £20,000?

If I really needed the £20k I wouldn’t have accepted the first offer. Look, I’ve accepted that my view is deeply unfashionable and most people wouldn’t think twice but I just wouldn’t do it.

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tobee · 04/08/2022 16:43

I know that from the comfort of my current situation at present, not needing to sell my house, my heart would definitely say I wouldn't do take the £20,000 after I'd "shaken hands". But I don't know what I'd do if pressed. And it's extra complex when the original accepted offer was the asking price, so I might not have dreamt of someone offering the extra over the asking price amount to have turned down the asking price iyswim @Blossomtoes

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tobee · 04/08/2022 16:44

Anyway, we shall see what op says happens. We can't guess at the vendor's emotional v financial response

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LittlePearl · 04/08/2022 17:36

Blossomtoes · 04/08/2022 16:37

Even if as the vendor you really needed the £20,000?

If I really needed the £20k I wouldn’t have accepted the first offer. Look, I’ve accepted that my view is deeply unfashionable and most people wouldn’t think twice but I just wouldn’t do it.

Me neither.

We were gazumped once. It was horrible, I wouldn't do I to someone else.

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coolmum123 · 04/08/2022 17:49

I wouldn't do it either, I don't think it's an unfashionable view, it's an honourable one. I would stress to the EA that I was interested if the sale fell through,

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JugglingJanuary · 04/08/2022 23:48

@tapestro Don't worry that you didn't explicitly say you were going to make an offer, even if you hadn't told them you need to think about it, part f their job is to follow up & let people who have viewed it know there's an offer on the table & if they want to make an offer need to get them in. The EA is supposed to be getting the seller the best deal they can! Not the first offer.

Corporate slaw, you deserve ALL the money!

Good to to mention buying the surveys AND that you can move quickly.

id try to find out if they existing buyers have cash cash or if they have assets they need to sell first.

your large deposit & willingness to move sharpish coukd well easily be a better proposition for them! Not to mention the extra money!!

🤞🏼🤞🏼

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tapestro · 05/08/2022 01:04

JugglingJanuary · 04/08/2022 23:48

@tapestro Don't worry that you didn't explicitly say you were going to make an offer, even if you hadn't told them you need to think about it, part f their job is to follow up & let people who have viewed it know there's an offer on the table & if they want to make an offer need to get them in. The EA is supposed to be getting the seller the best deal they can! Not the first offer.

Corporate slaw, you deserve ALL the money!

Good to to mention buying the surveys AND that you can move quickly.

id try to find out if they existing buyers have cash cash or if they have assets they need to sell first.

your large deposit & willingness to move sharpish coukd well easily be a better proposition for them! Not to mention the extra money!!

🤞🏼🤞🏼

Thank you, I really do appreciate all the advice given on this thread!

I know it's a contentious topic but I stand by my opinion that it's been a matter of days so isn't the worst thing to do. I certainly wouldn't call it ruining someone's life! Then again, we all know lawyers don't have hearts 😂

The EA called today to say the seller is thinking things over and I can expect a response tomorrow.

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midsomermurderess · 05/08/2022 01:07

If you hate the idea of gazumping people, don't do it. It's poor behaviour and should not be encouraged. House buying, particularly in England, is stressful enough.

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