Estate Agent and Gazumping?

[AnastieByte]

I have a family member in what I'm finding is an odd situation when buying a property. Although, I have not bought anywhere for over 20 years.

A property went on the market on Monday and they were the first to view it. They immediately put an offer in at asking price. The estate agent agreed to stop all viewings and the family member submitted the affordability paperwork that was requested and the evidence of their mortgage offer to demonstrate they can move quickly with the purchase.

By Wednesday the estate agent called and said they have other offers and what's the highest they would pay and to submit another offer above the asking price and a decision would be made.

This to me is very poor practice from the estate agent.

My question is to OC'ers Is this usual practice nowadays and is there anything can be done?

 

[jaybee]

I wouldn't say "usual", but common yes. Yes there is something that can be done. You write back politely that no, you will not be raising your offer and call their bluff that they don't have any other offers that are higher, if any at all. The number one rule with house buying is not to be a mug. Assume estate agents are lying to you with every word. Keep it simple, polite but firm. It's a game yeah, but for now you stand firm. When your offer gets officially rejected is when you can tell they do legit have other higher ones. No there's not much you can do. This is the system. It's broken.

 

[AnastieByte]

I wouldn't say "usual", but common yes. Yes there is something that can be done. You write back politely that no, you will not be raising your offer and call their bluff that they don't have any other offers that are higher, if any at all. The number one rule with house buying is not to be a mug. Assume estate agents are lying to you with every word. Keep it simple, polite but firm. It's a game yeah, but for now you stand firm. When your offer gets officially rejected is when you can tell they do legit have other higher ones. No there's not much you can do. This is the system. It's broken.

Thanks for the reply. I'll pass this on.

 

[pigeonguyuk]

I would be asking how they have higher offers if they stopped viewings. Its rare an estate agent would consider an offer without a viewing unless its a long term client (investment landlord etc). Its also rare for them to agree to stop viewings as its in their own best interest to get a bidding war going and obtain the highest price for the seller.

 

[quackers]

this is interesting, I would also ask the question about the higher offers.

 

[Semple]

I would be asking how they have higher offers if they stopped viewings. Its rare an estate agent would consider an offer without a viewing unless its a long term client (investment landlord etc). Its also rare for them to agree to stop viewings as its in their own best interest to get a bidding war going and obtain the highest price for the seller.

It's obvious that they didn't stop viewings. I imagine the conversation with the vendor went something like - we managed to get an asking offer on the first viewing, I reckon with more viewings we could easily go over the asking.

I have a family member in what I'm finding is an odd situation when buying a property. Although, I have not bought anywhere for over 20 years.

A property went on the market on Monday and they were the first to view it. They immediately put an offer in at asking price. The estate agent agreed to stop all viewings and the family member submitted the affordability paperwork that was requested and the evidence of their mortgage offer to demonstrate they can move quickly with the purchase.

By Wednesday the estate agent called and said they have other offers and what's the highest they would pay and to submit another offer above the asking price and a decision would be made.

This to me is very poor practice from the estate agent.

My question is to OC'ers Is this usual practice nowadays and is there anything can be done?

Your first mistake is expecting any form of good practice from an estate agent. They're some of the lowest forms of low in society, who wouldn't stop short of selling their own mother for a few quid.

 

[Gav_r26]

Your first mistake is expecting any form of good practice from an estate agent. They're some of the lowest forms of low in society, who wouldn't stop short of selling their own mother for a few quid.

Harsh ...........





....but extremely fair!

 

[happy_2008]

Very common for EA to do this, its not yours until you've exchanged contracts!

 

[dlockers]

Your first mistake is expecting any form of good practice from an estate agent. They're some of the lowest forms of low in society, who wouldn't stop short of selling their own mother for a few quid.

Yep

 

[jaybee]

I've only had one personal experience of an estate agent, and that was as a buyer. She was a lying **** and a disgusting human being.

 

[AnastieByte]

Yes I agree its disgusting. I've just found out that the estate agent is trying to get the family member to increase their offer by £25,000 on a flat!! Its insane, he has told them to %$^& off.

 

[jaybee]

In terms of trust levels you've got

car salesman from Birmingham
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Putin
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Estate agents.

 

[DXP55]

I thought gazumping was normal -it happened to us in 70's -House on market for £4.5k and when we knocked on door woman said I have been offered £6.5k -well out of our range.
It all started down bloody south. Would you believe.

 

[dlockers]

Gazumping is actually rinsing buyers when they are balls deep, not at the offer stage - isn't it?

 

[AnastieByte]

Its been a right pain for him. I really thought this was a thing of the past. I now realise its very real and the estate agent has been appalling.

 

[gazref]

Is someone paying more?

 

[Jimbeam3678]

Happened to us,in fairness they could have had other viewers arranged before you put your offer and taken off the market. IIRC they obliged to let them look and place an offer.

We walked away and said good luck with sale, purely out of principle.

 

[jpaul]

exactly they weren't going to cancel other viewings;

could have replied ok we are now lowering our offer the 0.5% monthly housing drop - call their bluff.
£25K increase demand puts transaction it in a fairly rarified segment of the market nonetheless circa 1M ?

some of the valuations from estate agents are OTT though, locally seem based on sqm of the property versus other criteria I rank more highly like how overlooked property is,
I mean we might have a 15m garden, but the property behind has about 40, but bigger+1 bed, properties on the other side of the road with next property 15M away higher valued.

 

[danlightbulb]

A property went on the market on Monday and they were the first to view it.

Most likely there were several viewings scheduled, probably on the same day as these things tend to be arranged in blocks.

This to me is very poor practice from the estate agent.

Its standard. Estate agents behave terribly and most vendors don't know better and just go along with it or perhaps aren't even aware of what their agent is doing on their behalf.


No one can really know if there have been other offers or not. It's likely if it's a nice place and lots of interest that there are other offers. Conversely if it's not desirable then there might not be, and they could be just trying to squeeze out more now that they have seen what the person can afford to pay.

 

[danlightbulb]

Yes I agree its disgusting. I've just found out that the estate agent is trying to get the family member to increase their offer by £25,000 on a flat!! Its insane, he has told them to %$^& off.

Oh it's a flat? What's the asking price?

Much more likely if it's a flat especially a city flat that you'd be dealing with a more scummy agent and probably a more scummy vendor as well, maybe a landlord seller. They won't care who they they sell to just want the most money.