How To Avoid Gazumping When Buying A Home
Are you planning on buying a home? If so, it's essential to take note of the potential challenges that might arise, such as gazumping. Gazumping is a scenario where a seller accepts a verbal offer from a buyer, but before exchanging contracts, defaults to another buyer who may have made a higher offer. So, how can you avoid this issue and ensure that your house purchase goes ahead smoothly?
Create A Binding Contract
Binding contracts prevent homeowners from the risks and pitfalls of gazumping. It's essential to use a binding contract and include the terms agreed upon by the buyer and seller. When it comes to contracts, use a conveyancer; these are legal professionals that understand property transactions and can give top-quality advice throughout the process. They will draw up a legally binding contract, check the property for any issues and provide support and advice.
Set a Deadline
It's helpful to have a deadline to facilitate the buying process. It gives the seller an ample time frame to consider offers and make their decision known. Secondly, it encourages the buyer and seller to stick to the agreed-upon deadlines in the contract. This way, the buying process remains clear, transparent and streamlined.
Buy A Pre-Auction House
Gazumping is common in the auction process. Therefore, choosing a pre-auction private sale can be a safer and more secure option, which should minimise the risk. The process should be more direct and unambiguous as the contract has already been agreed upon, and the paperwork is ready.
Keep Strong Levels Of Communication
Communication is key in preventing gazumping. The buyer needs to stay in regular contact with the seller to ensure they know of any changes to your financial and legal situation. This ultimately reduces the time frame taken in exchanging contracts and ensures that the seller knows of any issues before the contract is sealed.
Secure Your Financing
Gazumping is more common when the buyer cannot bring in the right deposit amount or have their financing pre-approved. Therefore, it is essential to get pre-approved financing and know how much you can borrow, as it gives you a competitive edge when submitting an offer. If you don't get approved for financing, don't despair, as you can ask for an option to withdraw from the contract.
What To Bear In Mind
Gazumping can be a nightmare for any buyer, and it's essential and helpful to take measures to prevent it from happening. With careful planning, communication and the right professional support, you can avoid gazumping and secure your dream home. Remembering to work with a conveyancing service for help. They will advise you on every little detail and ensure that the buying process remains safe, streamlined and stress-free.