How to Stop Gazumping: Norwich Home Buyers beaten at Last Minute
Back in the 1980’s property buyers were regularly gazumped, having set their hearts on a home and getting the purchase agreed only to have someone else come in at the last minute with a higher offer.
Gazumping happens when a seller accepts a higher offer, from another buyer, for their property when they’ve already agreed a sale. With the Norfolk property market being competitive, at the moment, gazumping is more likely to happen – as there are more buyers than sellers.
Typically the problem happens when a sale is dragging out, for example a slow solicitor, searches taking time to be provided or administration simply not pushing a property sale forwards.
At ZebraBuyer we offer to pay our vendors, reasonable, solicitor fees – requesting searches and enquiries on the same day as the purchase is agreed, draft contracts and transfer documents are put in place within 7 days. If a client wants a quicker sale we use search indemnity policies, meaning we can get a sale across the line quick without our clients having to wait.
In 2020 there were almost 100,000 less houses built than in 2019 combine that with a stamp duty holiday and people (in the main) saved money whilst being locked down inside – there’s now more demand than ever with less houses to fulfil the need. What happens what demand outstrips supply? Property prices increase and buyers start gazumping to get themselves a home.
Norfolk, like many counties in the South East, has seen people selling their homes in London, Essex and Kent, to take advantage of the beautiful countryside feel the county has to offer. So local demand, plus those relocating, has made it hard for buyers to find the house they want.
Is there a solution to gazumping?
Whilst gazumping is unfair, unlike in Scotland, in England it is not illegal. Though for any educated buyer there’s a simple way you can ensure you don’t get gazumped and miss out on the home you want.
Offer to the estate agent or vendor, I will exchange at 5% in 7 days subject to satisfactory searches, survey and replies to enquiries.
By adding the above to your offer, you exchange on the purchase of a property placing a 5% deposit down. Through exchanging you lock in the sale and you lock out any other potential buyer, in the meantime searches, surveys and replies can be received – allowing you the time to complete the sale as normal. The warning here is you have exchanged, if you (as the buyer) pull out you could lose that 5% deposit. With this article being about gazumping this method would prevent it.
(Note: this is not legal advice; please speak to a solicitor for a comprehensive understanding of costs and risk involved)
If you are looking to sell your Norwich house quickly, or want to be in a cash position that you can move quickly and snap up the home of your dreams, then complete our web form here and ZebraBuyer will be in touch soon.