Property gazumping – What is it and will it happen to you?

You may have heard the term ‘gazumping’ spoke from an estate agent, but wondered what it could actually mean to you as a buyer or a seller of property. As a general term gazumping is when a buyer has an offer in on a property, the buyer has paid for surveys and someone else come along with a higher offer to try and outbid that buyer. The original buyer then loses out on fees paid to surveyors and or solicitors.

It is most common for property buyers (just ask Top Cash Offer) to blame the estate agent for gazumping, but in actual fact all estate agents by law must pass every offer they receive on a property across to the seller. Any seller who isn’t in desperate need to sell a house quickly would always take a higher offer over a lower one. However, if the second bidder is not as serious as the first, a seller may be losing out on a potential sale and have to relist on the open market. It is a chance that all sellers take when considering a gazumped offer.

If you are currently buying a property we can give you a few tips that will help you stop getting gazumped, however please be prepared for it happening. Especially in a rising market like the one we are in now. There are more buyers than there are properties available for sale.

Tip 1. Make sure your mortgage is lined up and ready. Don’t wait until you find a property that you like before starting the mortgage application process. Ideally you should have a mortgage in principle already in place before you start bidding, and should have you application all in place.

Tip 2. Have your solicitor on standby. Make sure you choose a quick solicitor, and get them to perform any routine paperwork before you offer on any property.

Tip 3. Get the agent to remove the property. Usually once an offer has been agreed you can request that the buyer and agent remove the property from the open market. This means it is far less likely for anyone to actually find it. This rule doesn’t apply if the property you are buying is a public notice repossession property.

If you are in a position whereby you have been gazumped, don’t panic. Just remember there are hundreds of properties on the market, and it’s better to lose a few hundred pounds than it is to regret an overpriced offer made on a property.

Three Ways To Sell Your Property Online

The property market is currently undergoing some troubling times and so people are looking for more efficient and cost effective ways to find potential buyers and sell their home as quickly as possible.

By far the biggest change the market has seen is the vast increase in those using the internet to sell their home. This new method has three different ways in which it can be done, and after describing how each works you should find yourself in a position to decide which one will work the best for you.


Using online property portals

A property portal may be a new term to you, but what it does is allow you to advertise your property through the portal website yourself. You take the pictures and write the description of your home yourself and then upload it to the website so that people who are searching the website, or the internet in general can find it.

Often there is no charge for this, or if there is it is far cheaper than using a traditional estate agent. Be aware that some are extremely popular and have hundreds of visitors a day, where are some, often the newer ones receive less visitors and therefore may be less productive in getting you viewings. The things to look out for when choosing one is the number of properties it has listed, as generally it’s a case of the more the better, and secondly how much they charge.

The is nothing to stop you using all of the ones you find, so it is well worth your time spending an evening taking pictures of your home and writing some enticing descriptions, and then making an account at each different site and publishing your advert.

Using an online estate agent

Over the past few years the number of internet-only estate agents has rocketed and for good reason. Unlike a traditional estate agent which has a shop on the high street these only work online through small back offices but are often much cheaper to use.

Most require you to make an up-front payment before you are allowed to list your property with them, so unlike a traditional commission based agent you will have to cover this initial fee yourself whether you are successful in finding a buyer or not, but none the less if you use a popular one they can often be much more effective as the number of people who look at the website on an evening often exceeds those who look at the houses for sale in the traditional agent’s shop window whilst out shopping or on their lunch break.

Cash buying house companies

In reality most cash buying property companies are either a single person who has the money in the bank to make an attractive purchase, or a normal estate agent who wishes to have another public face to boost business.

In order to sort through the less scrupulous cash buyers find one which is registered with the Property Ombudsmen so that you will know that they are verified and conduct their business in a proper manner.

Always ensure that the ones you are dealing with do have the funds available to purchase your property as some might advertise hoping to find someone who has little idea of how the property market works and will try to take advantage of them.