There seem to be at least three main businesses in town.
You can come buy my house. It has been on the market two weeks but feels like two years!!
Finding a house is fun to begin with but it soon turns into a pain..
We looked at one house and the contract had already been signed but because they paid for it to be advertised they still did an open house so annoying
Yep it happened to us. We spent a whole afternoon on the phone to the real estate agent increasing our offers, and finally after about the 4th offer, we were told that it was ours, the real estate agency was closed so we were going in first thing the next day to sign the contract. Half an hour later, we got a call from the agent to say that another person who was putting in offers had scraped together another $1,000. We still had a few thousand more in our budget to increase but we're so angry then that we didn't increase ours. However the next morning my dad gave us a talking to and said you love the house, you can afford to go higher, don't let feeling angry stop you from missing out on what you want. So I quickly called the real estate agent and increased our offer by $1,000, the buyer was on his way to sign the contract and couldn't afford to pay anymore so we raced in as fast as we could to sign the contract, and it's now ours.
So I know what a crappy feeling it is, but thankfully ours ended up positively. I hope yours does too!
Yes we were gazumped and it made us really really angry at the time as the real estate was sneaky and conniving.
We had put in a BIG offer on a house we loved, we went big because we didn't want stuff around and at the time there were no other offers. For a week and a half, ours was the best offer. We signed the contract and had a pest inspection carried out all at around 5pm. The real estate got back to his office and rang us about 20 mins after leaving us. He told us he had a higher offer.
His solution - both come in with your best offer tomorrow with signed contracts and bank cheques and whoever is the highest gets it. We missed out by roughly $1500!!
There is much more to the story of course but we were/are gutted.
That happened almost 2 years ago and we still think about that house.
We have never gazumped anyone else that we know of, but if I were in your position now, I would still go and look at the house. Looking doesn't equal buying, and although I would never intentionally gazump someone, if it's a place that was perfect for our needs, I wouldnt hesitate to put in an offer of someone else had already.
At the end of the day, my main gripe was with the real estate agent we were dealing with at the time. I feel he was dishonest and slimy.
Thankfully that's illegal in Tassie. We put an offer in on our house and it was well below asking price. The owners were divorcing, 1 said yes and the other wanted to think about it. A couple of days later another offer was put in. The real estate called and said that another offer was put in but the owners couldn't even look at the other offer until they had decided yes or no on ours and there was still time to amend our current offer if we wanted. We changed it to asking price and the owners said yes as soon as they saw the offer. We later found out the other offer was only $1500 below ours.
Buying a house was the most stressful time of my life! and all we didn't go through the looking phase! I stumbled across the house and loved it, we were still a year away from even looking and having a decent deposit! I convinced DH to look at it with me, we put an offer in that day but it was still another 2 months before it was officially ours and unconditional! Stressful!!!
what states is gazumping legal in?? I'm certain it's illegal in Vic. real estate agents are conniving enough as it is, never mind if they're allowed to encourage gazumping.
makes me angry at how unfair the playing field is. the buyer really is at the mercy of the vendor and real estate agent. that's why we used the buyers agent. to feel like we had an expert in our corner gunning for us.
our offer that got accepted was actually lower than the others that came in. but our finance was unconditional (won't be doing that again as it caused many sleepless nights lol) and the offer was only good for 24 hours. put the pressure on the vendor and by the next day, we had word that the offer had been accepted. so don't always think that a big offer is necessarily the best. it's one strategy but it's not the only one.
We thought buying a house would be fun and exciting... Ha yea right it was war! Sydney is crazy it was us against 30 other people. We would put in an offer ( way over asking price) and the agents would laugh... Literally laugh Every Saturday afternoon turned into an over the phone "auction". The only reason we got a house after 4 months of looking and watching house prices up every week was because we threw a huge offer before open then prayed.
It's legal in NSW , when you make an offer on a property all you are doing is indicating to the seller that you are serious about wanting to buy their property. Until you have a contract signed by the seller there’s no guarantee that the property will end up being yours, the buyer has the right to change their minds at any time before signing, as does the owner
It becomes a problem when there are too many people interested in the same house and some buyers don't know the law around purchasing property - all states (I think!) have a cooling off period which protects the buyer ( except auction)
The main reason I auction 100% of my properties is to avoid the possibility of guzumping - the law around making offers is very hard for agents - firstly a verbal acceptance means nothing legally until contracts are signed but legally we have to give all offers to the owner - so if we have more than 1 buyer interested in making an offer ( which in Sydney since the 1990,s is every home) we have to not only legally take the offer but ethically give every buyer the right to increase their offer - then most buyers love playing the "game" of offering low and doing the "we won't pay anymore than $" statement , don't believe us when we say there are others buyers interested but then get the ****s when we sell it for a few thousand more!
Owners want the most they can get so yes they may say yes to an offer but when another buyer offers more they usually take it , with auctions the beauty is all buyers can see who and how much other buyers offer and it's an unconditional sale so once the hammer goes down its done and everyone gets the same opportunity
It is worse in a booming market like it is now , obviously , we are averaging 15 registered bidders per auction, imagine having to handle 15 buyers privately who all want to buy the 1 house and all offer more than what the house is worth - it's a nightmare
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