3 Sure Ways to Avoid Being Gazumped

With the property market hotting in

London, gazumping is reappearing especially in

Central London where I am seeing more and more of it. Gazump is a situation in which the price for real estate or land is raised to a higher price than what was previously verbally agreed upon. This is likely to happen where demand exceeds supply, under bidders can be tempted.There are things a purchaser can do to minimise the risk but there are no guarantees they will work. The most obvious answer is to walk away and find another home, but I have seen more and more people get emotionally attached esp. where there have been outbid. I think the fact someone else wants the house make you want to have it even more.
What if you still want to hang in there
1.Get a good negotiator to seal the deal for you.
2. Sign an ‘exclusivity agreement’ which gives the purchaser a certain amount of time to exchange contracts at a given price. While this period runs, the vendor should not show others round the property or negotiate with them. However, there is little you can do if the vendor breaches the agreement as nothing is legally binding until exchange of contracts.
3. Buy with cash, the best way to beat the opposition is by a rapid exchange of contracts that are conditional on a number of matters a satisfactory local authority search, and survey, to name but two. This will involve a more complex contract than usual, as it needs to define the basis on which the purchaser can subsequently withdraw, or try to lower the price.

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This entry was posted on Thursday, April 5th, 2007 and is filed under Prop.

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