Gazumping – What You Need to Know

You might have heard recently that the government is looking into clamping down on gazumping. It’s a wonderful word that unfortunately fills a lot of home buyers with dread. But just what is gazumping and what do you do if you have been gazumped?

 

You have put in an offer on your dream home and it has been accepted. All the paperwork has been drawn up, the surveys have taken place and you are simply waiting to exchange contracts. Then, another buyer comes along and put’s in a higher offer that in turn the seller then accepts. That’s not fair! Surely your offer is the only valid one as you have paid out for all the preparation and the buyer accepted?

 

Unfortunately, if this happens to you then at this moment in time it is completely legal, and you have just been gazumped. Gazumping refers to another seller putting in a higher offer that is accepted, pushing you out of the house sale.  Chances are you will lose a fair bit of money too after forking out for solicitors, conveyancers, not to mention the time you have put in.

 

Before purchasing any home, we recommend taking out home buyers protection insurance. This will cover you in case you are gazumped, and you will likely be paid out for all the costs you put in. It is also worth asking the seller to remove the property from the market. They don’t have to, after all what if the sales through because of you? Maybe your finances are up to scratch. Some sellers just aren’t prepared to take that risk.

 

What to do if you are gazumped? Sadly, there is very little you can do. You can always gazump the gazumper by putting in a higher offer. This might be possible or something you are prepared to do. Other than that, simply appealing to the seller that you are the best option regardless of price. Maybe you aren’t stuck in a chain? Think of something that might appeal and go for it. What have you got to lose?

 

Here at Springbok we have seen the heartache that gazumping causes and wish that the law would change soon to avoid this. If you have recently been gazumped on a property we might be able to find you something better. After all there’s plenty more fish in the sea right? View properties nationwide HERE