Gazumpted

Beanie5 · 11-01-2019 3:40pm #1

Hi All,

We were caught in a bidding war over the past few weeks, found out last week that our offer had been accepted and we were delighted. So we've spent the last week getting our letter of offer issued, getting our solicitor in contact with the auctioneer, putting down the deposit etc. Auctioneer emailed us a receipt and told us the house was now off the market and we were sale agreed.

Got a phone call last night to say the underbidder had a change of heart, went and drove to the sellers house and made them an offer of 10k more. So the seller has decided to go with them- even though they're not even mortgage approved yet. We're not in a position to offer anymore at the moment unfortunately, plus the house really isn't worth another 20k.

Is there anything at all we can do in this position? Or is it just take the deposit back and get over it?

drunkmonkey · 11-01-2019 3:44pm

Yea tell them your offer is good until 4pm Monday or your withdrawing it. Your mortgage approved the other buyer made an offer with magic beans.

Beanie5 · 11-01-2019 3:50pm

Thanks drunkmonkey. Might be worth a shot.

It did cross my mind the auctioneer was playing us, but she's since emailed to ask for bank details to refund the deposit so it's not looking too good.

She also told me that this other bidder is waiting on the sale of their house to go through, but they've said it's going to go through today. At 34 weeks pregnant I really didn't need this stress!!

rgodard80a · 11-01-2019 3:50pm

drunkmonkey wrote: »

Yea tell them your offer is good until 4pm Monday or your withdrawing it.

Not a question of withdrawing, it was rejected.
So definitely take your deposit back, it's your money.

IF... the gazumping underbidders sale falls through and they try to come crawling back to take your offer, then you say your offer is reduced by say €2k for the inconvenience/costs.

But basically, the seller is in control.
Take your money and let it go.
You will only be in a position of control if they come back later, if the other bid/sale falls through.

Ps. just because the seller accepts 10k+ over your offer, doesn't mean you need to offer 20k+.
In theory, they'd probably accept matching their offer if you had mortgage approval and the others didn't.

Beanie5 · 11-01-2019 4:02pm

Thanks All, hopefully it will all work out.

Rgodard80a, sorry that's a typo....meant another 10k. Even when bidding we were going up in smaller increments - Ã¢â€šÂ¬500/Ã¢â€šÂ¬1000 but from the start this "underbidder" was driving up the price. Jumping at least 5k every time. They're now nearly 20% up on the initial asking price thanks to their wild bids though.

whiskeyman · 11-01-2019 4:27pm

That's crap OP.
But nothing in place to stop in happening it seems.
I know it's hard to hear, but maybe it wasn't meant to be. Or maybe they will come back grovelling to you if their offer falls through.
Either way, best of luck!

the_syco · 11-01-2019 6:25pm

Beanie5 wrote: »

She also told me that this other bidder is waiting on the sale of their house to go through, but they've said it's going to go through today. At 34 weeks pregnant I really didn't need this stress!!

Wish them luck with being part of the chain, as unless the keys were given, the other sale could fall through yet!

Let them know that your offer stands until Monday CoB.

Edgware · 11-01-2019 7:36pm

As the others recommend tell them the offer stands until a certain date. Then walk away.
It is a very stressful procedure and nothing is definite until contracts are signed.

the_syco · 11-01-2019 8:41pm

Edgware wrote: »

It is a very stressful procedure and nothing is definite until contracts are signed.

Nothing is definite until you get the keys, tbh.

CollyFlower · 11-01-2019 9:41pm

Just say that your offer still stands and you won't be upping it, I wouldn't even give them a date.

Beanie5 · 11-01-2019 9:55pm

That what we've done CollyFlower. The whole thing seems a bit odd to be honest. Auctioneer called me again this evening apologising, in fairness she sounded confused with the whole situation too. The underbidder was suppose to send on proof of funds early this morning, and she said she hasn't heard a word. She thinks it could all fall through over the weekend yet. Who knows!

dubrov · 11-01-2019 9:58pm

Beanie5 wrote:

That what we've done CollyFlower. The whole thing seems a bit odd to be honest. Auctioneer called me again this evening apologising, in fairness she sounded confused with the whole situation too. The underbidder was suppose to send on proof of funds early this morning, and she said she hasn't heard a word. She thinks it could all fall through over the weekend yet. Who knows!

Sounds like you've been bidding against another bidder who didn't have the funds.

I'd be seriously reconsidering your offer downward especially given the seller has already shown that they have no qualms dropping you after going sale agreed.

Just consider how painful it would be if they dropped you 4 months from now after paying for a solicitor.

rn · 11-01-2019 10:00pm

Hopefully will work out for you. Don't go tinkering with your offer, despite the inconvenience or annoyance. It's a sellers market unfortunately.

CollyFlower · 11-01-2019 10:51pm

Beanie5 wrote: »

That what we've done CollyFlower. The whole thing seems a bit odd to be honest. Auctioneer called me again this evening apologising, in fairness she sounded confused with the whole situation too. The underbidder was suppose to send on proof of funds early this morning, and she said she hasn't heard a word. She thinks it could all fall through over the weekend yet. Who knows!

The auctioneer could be bullshiing.. if she "sounded confused" sounds like she doesn't know what she's doing,
could be she's chancing her arm and hoping you'll upp your bid. Stick to your guns and don't upp your offer.

Johnnyhpipe · 11-01-2019 10:53pm

Beanie5 wrote: »

That what we've done CollyFlower. The whole thing seems a bit odd to be honest. Auctioneer called me again this evening apologising, in fairness she sounded confused with the whole situation too. The underbidder was suppose to send on proof of funds early this morning, and she said she hasn't heard a word. She thinks it could all fall through over the weekend yet. Who knows!

Chancing her arm to boost her % commission more like. Hold fast!

Beanie5 · 11-01-2019 10:58pm

That's the thing, she could be for all we know. We've told her we won't be upping our bid so it's theirs if they want to take it at that price. Will be interesting to see what happens next.

dudara · 11-01-2019 11:02pm

Johnnyhpipe wrote: »

Chancing her arm to boost her % commission more like. Hold fast!

The additional income that an EA earns is peanuts, it’s literally not worth the bother.

In the EA’s mind, they had an accepted bidder, happy days. Now the seller has accepted another bid, possibly one outside their remit.

CollyFlower · 11-01-2019 11:58pm

dudara wrote: »

The additional income that an EA earns is peanuts, it’s literally not worth the bother.

In the EA’s mind, they had an accepted bidder, happy days. Now the seller has accepted another bid, possibly one outside their remit.

Estate Agents sometimes have a friend or family member looking to buy, they do stoop.

dubrov · 12-01-2019 12:09am

CollyFlower wrote: »

Estate Agents sometimes have a friend or family member looking to buy, they do stoop.

I'd say the more common situation where they need to be inventive is when the seller is asking too high and the bidders bidding too low. They need to talk down the seller and talk up the bidder as otherwise there is no commission at all

depcon · 12-01-2019 12:15pm

Could be the seller chancing their arm . Bit strange that the underbidder drove to the house and made the offer to the seller . Maybe the seller is lying to the EA to see if they can extract another 10 k or more out of you.

bleary · 12-01-2019 12:34pm

I had a somewhat similar situation when buying my house. It ended up the bidders couldn't follow through.

A few months later the house turned up again on the market. The ea ended up pushing through my offer with the buyers second time around.

I got the strong impression the ea saw the value of a solid bidder that would complete but the sellers were always hoping for more.

The last thing he ea wants is a flaky buyer or seller. Very poor form on behalf of the seller here

awec · 12-01-2019 12:58pm

Avoid overplaying your hand.

I would just say your current offer still stands. Don’t put a time limit, don’t reduce it

And keep looking elsewhere.

mr_cochise · 12-01-2019 1:01pm

Do not put a time limit on your offer. Leave it as is. There is no ink dry on any contract yet with the other bidder.

ted1 · 14-01-2019 10:43am

CollyFlower wrote: »

The auctioneer could be bullshiing.. if she "sounded confused" sounds like she doesn't know what she's doing,
could be she's chancing her arm and hoping you'll upp your bid. Stick to your guns and don't upp your offer.

Sounds nothing like that, sounds like the seller is making deals with people bypassing the EA.

ted1 · 14-01-2019 10:44am

CollyFlower wrote: »

Estate Agents sometimes have a friend or family member looking to buy, they do stoop.

Any proof to back up your wild claim

DaraDali · 14-01-2019 11:55am

Beanie5 wrote: »

Hi All,

We were caught in a bidding war over the past few weeks, found out last week that our offer had been accepted and we were delighted. So we've spent the last week getting our letter of offer issued, getting our solicitor in contact with the auctioneer, putting down the deposit etc. Auctioneer emailed us a receipt and told us the house was now off the market and we were sale agreed.

Got a phone call last night to say the underbidder had a change of heart, went and drove to the sellers house and made them an offer of 10k more. So the seller has decided to go with them- even though they're not even mortgage approved yet. We're not in a position to offer anymore at the moment unfortunately, plus the house really isn't worth another 20k.

Is there anything at all we can do in this position? Or is it just take the deposit back and get over it?

Drive to the sellers house yourself and sell your offer that was accepted! Just like with renting a house, sell your offer and the situation you are in! Like another poster said " nothing stopping you going over there "

travist · 31-01-2019 3:41pm

I wonder how this went?

Beanie5 · 31-01-2019 3:59pm

Turns out the other buyers had no means to back up their bid...we are now sale agreed with our original offer!

Doop · 31-01-2019 4:05pm

Delighted for you...
Part of me feels like you should of lowered your offer to 'punish' the seller for gazumping you in the first place. But anyway least ye got the outcome you wanted.

Anthonylfc · 31-01-2019 4:08pm

ted1 wrote: »

Any proof to back up your wild claim

when i bought my house in 2007 , i already lived in the estate so knew the neighbours etc

i put in a solid offer with ea , approved mortgage etc

ea came back saying seller refused it

2 weeks later , seller herself came to my dads business asking was he x's dad and was i looking at a house in x estate

my dad said yep , gave her my number

we did a private sale and the ea never even gave her my offer at all , sneaky witch just wanting more money

Tomw86 · 31-01-2019 4:10pm

Only seeing this thread now but I agree.

Even a 5k drop for the inconvenience would have been appropriate. I would not have had that carry on from the seller.

Glad you got it sorted and got the house you wanted on your terms.

Gazumpted

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