Sell My House Quickly in Birmingham
Sell My House Quickly found another interesting article about properties in Birmingham. How to avoid being gazumped when buying your dream home. Gazumping adds to the stress of house-buying, but experts have put together some tips on how to minimise the risk.
The threat of gazumping – when another party makes a higher offer on the house you are buying and has that offer accepted – adds to the stress when going through a property purchase.
And it can happen any time up to the exchange of contracts.
For buyers left in the lurch, it means going back to square one, having wasted time and money on surveys, arranging a mortgage, and paying for a conveyancer.
But the practice is perfectly legal in England and Wales because the agreement between a buyer and a seller does not become legally binding until contracts have been exchanged.
Ross Counsell, director at GoodMove, the regulated property buyer, has put together four top tips to help minimise the risk of gazumping when buying a home.
1. Find help in advance
Finding the right conveyancer, solicitor, and surveyor can take a while, so get these sorted as quickly as possible, by asking friends and family about who they’ve used in the past as well as checking reviews online. You will need to factor in conveyancing fees, too.
2. Mortgage in principle
Have your mortgage in principle ready before you even make an offer on a home because this can help to speed up the process and both the seller and estate agent can see you have a plan in place for the funds.
3. Ask the seller to take their home off the market
As part of the offer, ask the seller to remove the property from the market. While it isn’t guaranteed, it will reduce the chances of other people making offers. Most sellers do this – and it is standard practice – but if they don’t, it could be a red flag.
4. Ask for a lock-in agreement
A lock-in agreement is a binding agreement that prevents a seller from negotiating with any other parties.
It isn’t commonly used and some sellers can be wary about signing them. It can also be a complicated process because the buyer and seller have to put down a sizeable deposit.
However, if you are worried about gazumping, it may provide some protection so might be worth the hassle.
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