Expert recommendations on how to avoid being “gazumped” when buying a home.
Gazumping is a frustrating aspect of the home-buying process. What can I do to avoid being gazumped?
Someone else comes along and beats you to the perfect property in the perfect location just when you think you’ve found it. However, as recommended by Ross Counsell, Director of regulated property purchasers GoodMove, there are ways to avoid being gazumped, making the buying process lot simpler and getting you into your dream home much faster.
If the property is truly valuable, you should be willing to pay more than the asking price – and potentially more than your competitors – even if this entails some risk.
“It may sound obvious, but before buying a home or making any additional bids, make sure you can truly afford it,” Mr Counsell warns users of this website.
“One approach to try to reclaim the property after being gazumped is to make a larger offer – but be aware that this may result in a bidding war.” Mr Counsell adds, “Another strategy to try to avoid gazumping is to request that the seller take their home off the market as part of your offer.”
“Of course, this isn’t a guarantee, but it will reduce the likelihood of others making offers.
“Sellers are usually happy to do so because it is a fairly standard practice. If they aren’t, it could be a red flag,” Mr Counsell says. A lock-in agreement can help you out, but only if both parties agree.
“A lock-in agreement is a less usual technique of reducing the risk of gazumping,” Mr Counsell said.
“This is a legally enforceable agreement that forbids a seller from negotiating with any other parties, however some sellers may be hesitant to sign it.
“It can be a lengthy process that requires both the buyer and the seller to put down a substantial deposit, but if you’re very concerned, it can be worth the trouble.”