As the economy slowly makes its’ way towards recovery and house prices are reported to be on the rise, some conveyancing firms are seeing an increase in gazumping.
Gazumping is when your offer to buy a house has been accepted by the seller, but then they accept a higher offer from someone else. This can leave you considerably out of pocket – apart from losing the house you had set your heart on, you may already have paid for surveys and searches.
Estate agents are legally bound to inform the seller of all offers made on their property, even after one has been accepted. Until contracts have been exchanged the sale agreement is not legally binding and either party can withdraw from the sale.
If you are gazumped, it is a good idea to keep in touch with the estate agent and emphasise how keen you are to buy. That way, if the sale falls through they may contact you to see if you are still interested.
Can you avoid being gazumped? Not really according to Charlene Rimmer, a Conveyancing Executive in our Brockenhurst office. She advises “There are ways to try and minimise the risk. Try to help to speed up the sale by being prompt with paper work and responses – the quicker it is, the less opportunity to be gazumped. Some estate agents have a policy on gazumping and it’s worth checking when you are looking for a house. At Frettens we also try to keep the agent informed at each step of the process – when the survey is completed, mortgage offer sorted etc. This way they will know that the sale is progressing and are less likely to be tempted to speak with any other prospective buyers.”
If you have any questions and would like to discuss this further, please call 01590 623252 and Charlene or a member of her team will be happy to discuss any questions that you may have.
If you are interested in a conveyancing quote for a property you would like to buy or sell, please call 01202 499255.
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