Gazumping is the act of another person bidding higher on the home at any point during the process. Gazumping is allowed by law except in Scotland. The Estate Agency Act requires every real estate agent to notify the homeowner of every single offer made on the home even if a previous offer has been accepted. A person who is desires the opportunity for gazumping tends to skip the agent and go straight to the property owner.
Tips To Reduce The Possibility Of Gazumping
Determined bidders are hard to deter but there are a few tips to lessen the possibility and to negate any financial impact.
1) Offer the full asking price.
2)Request in writing that the home is removed from the market immediately after acceptance of the offer.
3) Establish a relationship with the seller. This will reduce the chance of them accepting a higher offer.
4) Obtain an insurance policy that will refund any fees if gazumping occurs before the sale is complete. An insurance policy will not lessen the disappointment of losing out on the home, it just covers any fees paid out.