Could Gazumping be a thing of the past?

You might have heard the word ‘Gazumping’ being said quite a bit recently, but do you know what it means? For once, gazumping hasn’t been in the news just because of its effect on you, as a buyer, it’s actually being talked about by members of the Government who are launching a bid to make buying a home less stressful. Anyone who has been affected by this highly unpopular practice will welcome the news about potential new rules. We take a look at how gazumping could affect your next house move, and how you can help the Government improve the process of buying and selling a property.

What is gazumping?

Gazumping is when a seller accepts a higher offer after they have already agreed to a sale. In addition to the original buyer being left disappointed about losing out on their new home, they can also be left out of pocket. Survey costs, conveyancing fees, and mortgage fees can amount to thousands, which unfortunately cannot be refunded. Although gazumping may feel unfair, it actually isn’t illegal in England and Wales. Unfortunately for you, the seller has every right to accept an offer from another buyer right up until the point that written contracts are exchanged.

How can you avoid being gazumped?

Although it’s never guaranteed, there are several ways that you can try to avoid being gazumped next time you have an offer accepted on your dream home. First, simply being prepared will help move the sale process along quickly; this includes ensuring that your mortgage is in place, choosing a solicitor and gathering all the necessary paperwork. If possible, make a connection with the buyer; allowing them to get to know you will show them that you’re a serious buyer, hopefully making it harder for them to accept another offer. You may even choose to ask them to take the property off the market; this may not be possible, but showing them that you’re serious by proving your commitment can sometimes help.

Take part in the Government’s open consultation

It might surprise you to learn that £270 million a year is wasted on sales and purchases that don’t complete. This shocking figure is what has led the government to suggest this potential change in legislation, which could eliminate practices such as gazumping. What you also might not know is that the government has launched a ‘call for evidence’, which is a questionnaire aimed at collecting industry and consumer views about the process of buying and selling property. You can share your views until the 17^th December 2017 online at: Improving the home buying and selling process: Call for evidence. In addition to tackling gazumping, the evidence collected will also shed some light on how the home buying process can be made cheaper and quicker.

We’re hoping that you won’t have to feel the effects of gazumping, and if the Government successfully passes these new regulations it will be one less stress to worry about when buying a new home. Until these changes are made, we advise you to work with an experienced and well-recommended agent to help buy or sell your property. If you have any further questions about gazumping, or the buying or sales process in general, you can download our Sellers Guide or Buyers Guide for free online. To speak direct to a member of the Anthony Pepe team you can contact your local branch in North London by phone, email or in person.