Gazumping is when someone else makes a higher offer for a property than you have, after you have had your offer accepted. In this blog, we look at the gazumping problem and how to avoid it happening to you when you’re buying your new home in Guildford.

Is gazumping legal in the UK?

Unfortunately, yes. The seller has the right to accept a higher offer for their property at any time between putting it on the market and completing the sale. However, there are some steps you can take to protect yourself against gazumping, and which might win you the property after all.

Protect yourself against gazumping

Take out home buyer protection insurance

Home buyer protection insurance will save you from being left out of pocket if you get gazumped. You can claim back any survey and conveyancing fees that you spent in the buying process, as well as anything you’ve paid to your mortgage lender. 

Be ready to act quickly

In house-buying language, this is also called being “proceedable.” This means that you have a buyer lined up for your current property, or a mortgage in principle agreed with your lender. Do your sums and get your paperwork in order; contact your solicitor and your surveyor. 

These preparations will mean that you’re ready to move quickly once your offer is accepted. The faster you can complete the sale, the less chance there will be of another buyer gazumping you. 

What to do if you get gazumped

Explain why you’re the better buyer

Gazumping is all about money, but buying and selling property is not. While it’s important to buy and sell property for the right price, a high offer is only worth it if the sale is likely to be completed. This means that if you have a mortgage in principle agreed by your lender, or you’re a cash buyer, or you’re not part of a chain, you might still have an advantage over the buyer who made the higher offer. If you have your ducks in a row, you’ll also be able to complete the sale faster, which might be an important factor if your seller is in a chain or needs the money quickly. 

For all you know, the higher offer might not be backed up by a mortgage in principle, and the gazumper might not be proceedable. Be ready to state your position – if you’re lucky, the seller might choose your lower offer after all. 

Gazump the gazumper

If you can afford to put in a higher offer, it will show the seller and the gazumper how serious you are about the property, and might help you to get it back. However, this is a risky strategy – this is a house purchase, not an auction, and you don’t want to get caught up in a bidding war, paying more than you can afford. 

The house I want has just sold for less than I can afford. Should I gazump?

In general, gazumping is a bad thing. Being a gazumper makes you look bad and might make sellers wonder why you were slow to make an offer even though you say you’re keen. Gazumping creates problems for the original buyer, obviously, but it also makes more work for estate agents. Gazumper offers also fall through more frequently than initial ones. 

The better approach is to contact the estate agent anyway and say that you’d be interested in the property should the current offer fall through. You never know – you might even get first refusal on the house next door! 

Sell property in Guildford

The Cobbles team are highly experienced at selling property in Guildford and the surrounding area. Find more information on selling with Cobbles here, or call us on 01483 000 457 to book your free valuation.