What is Gazumping - Paul Stripp Estate Agency Explains

While gazumping may sound like a made-up word, it’s actually a very real thing and something you may, unfortunately, come across if you’re trying to buy a new property. 

What is Gazumping?

Gazumping occurs when another party makes a higher offer on the property you are in the process of buying, and the seller accepts their offer. This essentially puts you back to square one and can be costly if you’ve already paid for surveys and solicitors. 

Here’s an example to help you visualise gazumping in action:

• Mrs Smith puts her house on the market for £400,000.

• Buyer A offers £410,000, which the seller accepts.

• Solicitors are instructed, surveys arranged and paid for etc.

• Then buyer B comes along and offers £440,000.

• The seller accepts the higher offer from buyer B.

• Buyer A has been GAZUMPED.

When Can Gazumping Happen?

Unfortunately, gazumping can occur at any point up until the exchange of contracts. Estate agents don’t like gazumping but are legally obliged to put their client's offer forward even if they know another party is already in the process of securing the sale. 

How to Prevent Yourself from being Gazumped!

As a buyer, there are a few things that you can do to lower your chances of being gazumped: 

1. Make your offer as strong as possible. 
2. Ask that the property is removed from the portal websites and the agents' website in the agreement of an offer.
3. Have your finances in order and ready to go to speed up the sales process. 4
4. Have your chosen solicitor lined up and ready.
5. Move the sales process along as fast as you can by staying on top of communications. 
6. Stay in touch with your estate agent regularly. 
7. As a final point, you could discuss an exclusivity agreement at the initial offer stage. 

What Happens if You Get Gazumped?

At Paul Stripp Estate Agency, we know what it feels like to think you’ve secured your dream home only to have it stolen from beneath you. If you’ve been gazumped on a previous sale, we can help advise you on the best path forward and will do our best to ensure that the same thing never happens again!

To find out more about buying your next home in East Sussex with Paul Stripp Estate Agency, get in touch with us today.