The property market is a world of opportunities, but it can also present challenges like gazumping. If you’re selling your home, the last thing you want is to face unexpected delays or disruptions. Let’s explore what gazumping is and how you can sidestep this pesky problem to keep your sale on track.
Understanding Gazumping
Gazumping occurs when a seller verbally agrees to an offer, only to later accept a higher bid from another buyer. Since offers aren’t legally binding until contracts are exchanged, the original buyer is left in the lurch, and the seller must start anew with the new buyer.
Why Sellers Should Be Wary
While a higher offer might seem tempting, it can bring about delays and risks. New buyers might take longer with their mortgage process, surveys, or legal work. There’s also the chance they might withdraw altogether, leaving you back at square one or tangled in a lengthy chain with no progress.
Tips to Avoid Gazumping
- Choose a Serious Buyer: Look beyond the highest offer. A committed buyer with finances in order might be a safer bet than someone offering more but unprepared.
- Move Quickly with Paperwork: Once you’ve agreed on an offer, keep the momentum going. Promptly instruct your solicitor, provide necessary documents, and respond to queries to minimise the chance of other buyers swooping in.
- Communicate Clearly: Set expectations from the start. Make it clear that once you’ve accepted an offer, you intend to proceed unless something significant changes.
- Consider a Lock-Out Agreement: In some cases, you can enter into an agreement that gives one buyer exclusive rights to proceed for a set period.
Handled well, you can minimise the risk of gazumping-related disruption and ensure your sale progresses smoothly. And remember, if you need expert guidance, we’re always here to help at Sawyer & Co. Happy selling!