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?

[Violinist64]

@JugglingJanuary

@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!!

🤞🏼🤞🏼

There is a big difference between knowing that there is an offer on the table that has not been accepted yet and overriding one that has been accepted. We viewed a house knowing that we would have to make our minds up quickly as it was under offer but had no intention of entering a bidding war or gazumping an offer that had already been accepted. As it was, our offer was the one that was accepted and we would have been most upset if someone like the OP had come along and tried to snatch it away from us.

[Pinkdelight3]

I think you're doing the right thing. Given the number of 'cash buyers' who turn out not to be cash buyers at all and suddenly need to sell a proper to obtain said cash, I'd say a genuinely chain-free buyer with rock solid mortgage in place is just as attractive. Plus at this point, it's hardly on a level with the kind of life-destroying gazumping that some are talking about. It's just putting an offer in and again, the number of accepted offers that founder within days/weeks from faults on either side is legion. Well worth having a go, OP - good luck with it!

[Minimalme]

The other thing I would be wary of op is that a sale has already fallen through - I'd want to know why the previous buyers withdrew after the chain collapsed?

If they accept your higher offer, one you get sight of the surveys you might find their is at least 20k's worth of work which needs doing.

Negotiating a reduction in those circs would be awkward.

[justfiveminutes]

Personally, I wouldn't have bothered. The EA knows the buyer, and did their best to communicate that they were happy with their cash buyer offering the asking price.

I can't imagine £20k would make them reconsider. I'm surprised they're even considering it tbh. They're probably waiting to hear whether the buyer will match your offer. I can't imagine they'll struggle to raise £20k.

In these circumstances I'd have left well alone, different if you were the one in the stronger position.

[justfiveminutes]

"I think you're doing the right thing. Given the number of 'cash buyers' who turn out not to be cash buyers at all and suddenly need to sell a proper to obtain said cash"

That shouldn't happen. You need cast-iron evidence that the EA thoroughly investigates around here.

[tobee]

@justfiveminutes

Personally, I wouldn't have bothered. The EA knows the buyer, and did their best to communicate that they were happy with their cash buyer offering the asking price.

I can't imagine £20k would make them reconsider. I'm surprised they're even considering it tbh. They're probably waiting to hear whether the buyer will match your offer. I can't imagine they'll struggle to raise £20k.

In these circumstances I'd have left well alone, different if you were the one in the stronger position.

Lot of speculation here

[Highfivemum]

Have you heard back OP?

[Crucible]

Cash offers are often a figment of the imagination of the bidder. So often it turns out that the cash offer is actually a whole house of cards of mortgage, borrowed money, waiting on a bundle from a parent or a deceased estate that's going to materialise in a year.. Make a solid offer backed up with full paperwork and proof. Deals fall through, most often with cash buyers I'm afraid.

[Threelittlelambs]

I agree that cash buyers aren’t always that reliable. Some are getting hand outs from a variety family members which don’t materialize, others will be relying on a bank loan they haven’t declared. The only real cash buyers are building companies.

[Sswhinesthebest]

What was the response?

[TitaniasAss]

@Threelittlelambs

I agree that cash buyers aren’t always that reliable. Some are getting hand outs from a variety family members which don’t materialize, others will be relying on a bank loan they haven’t declared. The only real cash buyers are building companies.

Not necessarily. We remortgaged our house to buy another one cash.

[tapestro]

Hi everyone, still waiting to hear back. I expect they’ve gone back to the cash buyer to see if they will match my offer.

I’m trying not to get my hopes up but that’s easier said than done when it’s a great property.

I hope I hear back tomorrow, whatever the outcome.

[JudyGemstone]

Good luck OP, alls fair in love, war and property!

anyone who feels that losing out on a house ‘ruined their lives’ get over yourselves. It’s just a house, there’s plenty more fish in the sea.

I offered on a few places before I got my place and missed out, it’s just the way it goes.

[tapestro]

Maybe this is me trying to absolve myself of any guilt but it’s up to the sellers whether they accept my offer. They’re the ones deciding if an extra £20k is worth it or not.

And once again, it’s been a few days. Hardly life ruining.

[Blossomtoes]

The only real cash buyers are building companies

My son was a genuine cash buyer, he bought with an inheritance. I’m sure he’s not unique.

[justfiveminutes]

I was a cash buyer, having sold and moved into a rental while I looked around, so it is not always a company.

I think you're right that they've gone back to their buyer op. You can't blame them and anyone would do the same but if they stick with the original buyer then the only result of this is an unnecessary £20k increase in the purchase price.

Hopefully, they'll tell them to get lost and the vendor will come back to you.

[tapestro]

I'm inclined to believe the cash buyers have cash on hand (or liquid investments) rather than assets to sell, based on brief bits of info I've heard from the estate agent. I could be completely wrong of course.

I still haven't heard from the EA. I'm so impatient and the wait is driving me crazy. I'm really hoping I hear back today, even if it's bad news I'd rather just know!

[girlmom21]

@tapestro

I'm inclined to believe the cash buyers have cash on hand (or liquid investments) rather than assets to sell, based on brief bits of info I've heard from the estate agent. I could be completely wrong of course.

I still haven't heard from the EA. I'm so impatient and the wait is driving me crazy. I'm really hoping I hear back today, even if it's bad news I'd rather just know!

You could just phone and ask? If they're waiting to hear back from the cash buyer and have given them a deadline they'll tell you that.

[tapestro]

@girlmom21

You could just phone and ask? If they're waiting to hear back from the cash buyer and have given them a deadline they'll tell you that.

I think I'll call later this afternoon if still nothing.

I'm definitely overthinking it but knew I threw a spanner in the works with my offer so didn't want to follow up and seem even more annoying!

[SammySueTwo]

OP - Hope you get it. And I wouldn't think of it as gazumping.

I say this as someone who had an offer accepted, paid for a full structural survey, organised my mortgage - we were due to exchange and complete on the same day so the funds had effectively arrived. On the day of exchange and completion we were gazumped - full 20% extra. Couldn't match it. Lost thousands in professional fees. I'm afraid I was rather happy when the property flooded after the new owners moved in.

[girlmom21]

I think you seem eager, not annoying.

You following up let's the estate agent know you're keen and you're genuine.

[Blossomtoes]

@girlmom21

I think you seem eager, not annoying.

You following up let's the estate agent know you're keen and you're genuine.

It’s not up to the estate agent. My moneys on a massive arguement between the vendors, with one wanting to accept the higher offer and the other wanting to turn it down.

[tapestro]

Spoke to the estate agents, the vendor stuck with the other offer. Sounds like they didn't try to push up the price either.

They've said I'm first in line if the sale falls through but I'm not optimistic. Also, and I know sales fall through for all kinds of reasons, but two falling through within six months would make me worried there's something wrong with the property that's causing people to drop out!

I'd be lying if I said I wasn't disappointed but life goes on. I didn't realise how soul destroying the process can be. Back to refreshing Rightmove every 20 minutes it is :)

[Blossomtoes]

Good. How refreshing that there are still people who put principles before money.

[SpidersAreShitheads]

Ah sorry to hear that OP, you must be disappointed. At least you know you gave it your absolute best shot. Given all your updates I reckon that even if you had offered sooner, they’d probably have gone with the “safe” sale.

I know it’s twee but I’m a big believer in what’s meant for you, won’t pass by you. If this didn’t work out it wasn’t meant to be.

Our vendor withdrew his house from the market and we were gutted. Three months later we suddenly found a far better house, with a layout we never could have dared hope for (we are doing something a bit unusual and needed some very specific things). We completed on our house on 11th July. Your house is out there - you just haven’t found it yet. Keep searching 😊