I speak from experience. Once upon a time, a few years ago, my partner and I had an offer accepted on lovely top floor apartment over looking a park in Liverpool. But just as we were sorting things out with solicitors etc, we were told by the Estate Agent that the vendor had accepted a higher cash offer – something, that as first time buyers, we couldn’t compete with. So our dreams were crushed! How cruel! (Made even worse as shortly afterwards Liverpool was awarded with the Capital of Culture for 2008, which sent house prices soaring, we could have made an easy £30,000 or so).
Gazump comes from the Yiddish word ‘gezumph’, meaning to cheat or overcharge, but is applied almost exclusively to the property market.
Recent research has found that 73% of first time buyers are now calling for an end to gazumping, and that when an offer is accepted on a property it should be legally binding. Last month just 12.3% of properties sold in the UK were to first-time buyers, with many properties being bought by buy-to-let investors and wealthier buyers.
There are a few things you can do to protect yourself once you have an offer accepted/.
Get a mortgage agreement in principle before house-hunting.
If the market is booming (like it is) offer the asking price.
Make your mortgage application quickly after making an offer.
Ask that the property be taken off the market after you've made an offer (if the seller is using multiple agents ask them to inform all the agents not to arrange more viewings).
Having found a property and had an offer accepted instruct solicitors straight away to begin the preparatory legal work.
Get a survey done as quickly as possible.
Keep in touch with the selling agent to let them know what stage the process is at.
Establish a rapport with the seller - it helps to convince them you're serious and will make it harder for them to ditch you.
