Gazumping - we plan to do it. We are FTB looking for a home

We were out bid on a property we would like to live in and we are thinking of Gazumping

The EA has told us a few details … The bidder has got an architect in and they have been approved. Contracts will be sent out Monday 25th Feb to them.

How long does it take for contracts to be signed and returned to the vendors solicitors ?
We have to act fast.

Any general advice?

Unless you know the owners, I would be very surprised if the EA passes your bid on.

Most EA’s I have done business with have some level of morals.

Was this not a very common occurance during the bubble? Or am I thinking about different EA’s? :open_mouth:

I agree with casero, I let an EA know i was very interested in beating an offer on a sale agreed house. They just said they’d let me know if it fell through.

Agreed too.

EA would have no incentive to pass on the OPs offer. They have got their money, they are moving on.

2 years ago I would have been all moral about this. Now, after being burned a couple of times, I’d say go for it. But to pull this off, when the time comes, you have to come up with a credible excuse and you have to put it in the vendors mind that all buyers will come across this problem.

Edit - I think its called ‘Gazundering’

I also had the same experience. I wasn’t interested in direct gazumping because I knew the purchaser who had already gone sale agreed and didn’t need to create bad blood. But when I heard that the purchaser was trying to renegotiate because the vendor had dragged his feet on resolving a legal issue I contacted the EA a couple of times to let him know I was interested if bidding opened up again. But the EA just thanked me for letting him know but there was no talk of trying to solicit a higher offer from me to squeeze out purchaser who had already gone sale agreed.

I’m not so sure about that. I was gazumped on a house ten years ago, just before first signing of contracts.
I was naive and didn’t think it could happen in Ireland. Obviously I was enraged and pushed the issue. Following many phone calls, a Sherry Fitz director called and she informed me that they had a legal obligation to put all offers to the vendor.

No sale until the ink is dry. I would have no issue gazumping - but that is just me. No difference to the general bidding process - if the other side prioritised architects over contract signing - well that is their error.

If we put our morals aside for a moment.
How much were you thinking of gazumping by? You say you were outbid, if you didn’t have the money then why do you have it now?
It’d want to be a fairly hefty sum for the seller to take a chance on you actually coming up with the money, and kissing goodbye to serious buyers who have already shown their intention to buy by paying for solicitors, surveys and architects.
It’d take a lot of money for a seller and an estate agent to walk away from a decent buyer who is a sure thing. I’d say at least 10% more at the very minimum. And like the estate agent would have to risk their credibility as well. For the EA charging 1-2.5% it’s not worth their while for the sake of another couple of hundred euro.

Made my day … I’ll be chuckling all day long. SF have had an ethics graft ! That’s the biggest bullshit whopper I’ve heard on this forum in a long long time … and oh look it came from an EA.

Lesson1 flowchart. Is the EA lying ?

  1. Are their lips moving ?
  2. Yes - the EA is lying
  3. No - the EA is thinking about lying, wait for Step 1.

I’m with casero.
2 recent experiences:

  1. We were underbidder on a house; EA tried to contact us to give us a chance to up our offer before going Sale Agreed but we were on holiday and mobile coverage was very poor. When we did pick up his message we mulled over putting in a higher offer the next day. However, he declined our higher offer as he had the deposit cheque in his hand. Told us he would let us know if the sale fell through (it didn’t).
  2. We have recently gone Sale Agreed after a bidding war (cue shocked horror from pinsters - a bidding war!). Anxious that that would be the end of it Sherry Fitzgerald assured us that we had 3 days to pay the deposit and they wold not entertain offers in that 3 day period, or therafter once we paid the deposit.
    Caveat to 2 - the EA is the agent of the seller, so if there was a significantly higher bid they would have a fiduciary duty to pass it on.

If, on the other hand you believe EAs have no morals or scruples whatsoever then they are not going to piss-off one purchasers for a couple of hundred quid in extra commission when they could sell this house and have another potential purchasers to buy the next house.

From the Sherry Fitz Website:

sherryfitz.ie/aboutus/jargonbuster.aspx#g

Yes. That’s what the website says, certainly.

BTW - not singling out SF in particular, they are highly representative of the trade as a whole.

Bored: been trying to find out where that legal obligation is. All I can find in the PSRA act is a requirement for the agent to retain all communications for 6 years. None of the regs look like they have it either.

Edit … Ahhh, found it … Its Code of Practice NOT in the law or the regs unless SF terms of business state it explicitly.

psr.ie/website/npsra/npsrawe … actice.pdf

So far less “legally binding” than you might think.

Yep, I suppose the key thing is that the agent would be considered unethical if they do not pass on the gazumping offer to the vendor. That kind of goes against common sentiment on the issue - i.e. that the agent would be unethical to pass the offer on to the vendor.
It’s up to the vendor as to whether they want to renege on the sale agreed deal.

After you gazump, I hope you get gazumped.

Live by the sword, die by the sword.

Lot of ads around like this one which seem to be encouraging gazumping. ( i.e sale agreed but not properly marked as so)

myhome.ie/residential/brochu … 14/2070387

I also noticed this and also sometimes “Under Offer” at the top of the description, while the listing remains active on Myhome and Daft.

  • one. Quite appalled by the OP actually.

fren·zy (frnz)
n. pl. fren·zies

  1. A state of violent mental agitation or wild excitement.
  2. Temporary madness or delirium.
  3. A mania; a craze.

OP, you were outbid on the house. Maybe get over it? It was to be hoped that a level of sanity and decorum would return to the Irish property market. But between such as your OP and the general profusion of WIW threads with feverish responses you get on this forum etc, I think we’re far from it. Any buyer frenzy works against all buyers really. It’s contagious. The sellers love it. But knock yourself out.