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

Such is the moral hazard manifested once invoked by the high-priests of Dem-ocracy.

Find your own house.

I think any ethical/moral question lies with the vendor really - they are backing out of a deal to entertain a higher offer.

It feels horrible when this occurs - when it happened to me it was mostly the vendor that I was angry with.

Gazumping/Gazundering different sides of the same coin.

The key point to note is that this behaviour is driven by the buyer and not the seller or EA.

Have a look at the code of ethics I posted a link to … that’s all it is.l… a code. Even the “legal obligation” the SF’er posted in previous page isn’t really an obligation … so that itself is a lie, you could say.

Would not gazump myself unless I thought the ea or other bidder pulled a fast one.

I think seller is LESS likely to take bid seriously as others have mentioned above

Maybe it’s in the SF client contract, making it a legal obligation. If that’s the case and it’s not a legal obligation outside of their client contract, then it looks like you would be more likely to get gazumped on a Sherry Fitz deal than with another agent.

But it’s the seller that’s breaking the deal with the previous buyer.

If the woman/man of your dreams was engaged someone else, would you try to win them over?

In this market, EAs’ll facilitate the surer bet - if they’re at the exchange of contracts stage, the earlier bird will get this worm…

@jammy - you are not thinking of gazumping… you are thinking of putting in another offer. it’s only gazumping when your offer is accepted. …

yes its generally considered bad form to make an offer after another has been accepted…but if i was a vendor i would want the EA to put all offers on to me. I might not consider them but i would want to know of them. E.G. if the other buyer was slow in transacting or was considering to reduce the offer because of a survey or for any reason it would be useful information to have.

if i was the vendor i would want a large premium for reneging on a deal. a few grand more, a little bump up where you would have gone next in the bidding had you continued is not going to cut it. trying to put myself in a vendors shoes i would think 5% higher would make me stop and think. even then i’m sure a lot of sellers would not go back on a deal.

perhaps the accepted offer was less than the asking ? if you were to put in this late late offer you could meet the asking price. in any case it would have to be a good whack higher as per the above. If accepted Are you sure its worth it ? Is there nowhere else you could find. is the property that unique and you will be devastated for ever more when you drive past ?

If I was a vendor there’d be an immediate lack of trust in someone who would offer well after a sale agreed when they knew an honest purchaser had invested time and money. It suggests such a bidder would have no moral qualms leaving the vendor high and dry at any point if it suited them.

Just in case there’s any confusion - putting an offer in on a house that is “under offer” is NOT gazumping. The seller has not agreed to accept the offer yet, probably because they think it is too low so it’s perfectly fine to put in an offer yourself at this stage. Putting an offer in on a house that is “sale agreed”, i.e. the seller has agreed to sell to someone else who put in an earlier offer - THAT’s gazumping. It isn’t illegal but it’s very bad form, as the original buyer may have moved to sell their own home on the basis that everything is moving ahead because the sale IS agreed, and if a buy accepts another offer at this stage the poor original buyer could be in a position where they are homeless.

Did it not say in the OP that contracts were being sent out to highest bidder yesterday? AFAIK that would only take place after the seller has accepted the offer and the process has thus moved onto sale agreed. ie. ‘Sold to the highest bidder’.

Apparently the EAs are not removing houses or labelling them Sale Agreed on the websites until the contracts are signed now, as they have cottoned on to the fact (finally) that houses which disappear then re-appear later may look dodgy to buyers.
So houses that have sale processes going through may still look like they are still for sale or the EAs may be using ‘Under offer’ labels to show a sale has been agreed.

I would argue that there is an obligation for the agent to pass on all offers. Legal eagles could likely argue that not passing the offers on to the client are at the very least an an act of negligence.

I have never felt personally comfortable when a situation like gazumping occurs. However, the client would always be advised of the offer. For the vast majority of cases, the client has stuck by the original agreement.

In my opinion, if the gazumper is willing to gazump, then he/she is also willing to gazunder when it comes to signing up!

As a buyer I would insist on the property postings being updated to “Sale Agreed” once I had paid my booking deposit.

I am sure most owner would agree provided your booking deposit is non-refundable.

Booking deposit is always refundable until exchange of contracts but it shows that you mean business.

I’d have thought most final offers are made on the agreement that “the property is taken off the market”. Certainly that’s been my experience.

That means marking the property as Sale Agreed, and also may have some bearing on the earlier question of whether the EA has any obligation to pass on offers on a property that is technically not for sale.

I would not pay a deposit until all marketing has ceased. The property needs to disappear from MyHome, Daft etc. Happy to make my deposit non-refundable (provide the legals are ok).