Gazumping is a term given to the situation when your offer on a property has been accepted and another buyer comes into the picture and makes a higher offer which is accepted by the seller. It is often a very upsetting outcome for the innocent party.
You could reconsider your offer if you feel the property is worth it. If however, the seller accepts the higher offer and you do not increase your offer then you may need to restart your home-buying search again.
Gazumping can happen at any time before contracts are exchanged. It could even be on the same day your offer has been accepted, or many weeks later,. Whenever it does happen, it is not a nice experience and often leaves a bitter taste.
Unfortunately, gazumping is legal in England and Wales though some consider it unmoral. Until a purchase becomes legally binding i.e. once you’ve exchanged contracts, the seller or buyer can still pull out of the deal. In Scotland, there are binding contracts, known as the missives, which are signed much earlier in the process, usually right after an offer has been accepted.
So how can you minimise the risk of being gazumped by another buyer? You should be prepared move fast and the quicker you are at finalising key parts of the transaction i.e. mortgage approval and surveys, the sooner you shall be able to exchange contracts. By having your mortgage agreed in principle and by having your solicitors instructed before you make an offer can greatly speed up things for you.
Here at Hamilton Paige, we aim to exchange contracts within 48 hours. Our customers find our friendly customer service and fast response team a reassuring way to sell their property. We regard our service as a genuine and better alternative to the traditional and stressfully slow process of selling via an estate agent who unlike ourselves charge high fees for their services.
If you have a property or home to sell then place get in touch with us and we shall guarantee to provide you with a free and non-obligatory quote.
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