The most common cause for property purchases falling through is gazumping, new research from Compare The Market has revealed.
The price comparison website found 39 per cent of buyers admitted they had successfully secured their home by outbidding an offer that had already been accepted and it’s rapidly on the rise. With estate agents across the country selling properties just hours after listing and often with dozens of offers on the table, most significantly more than the asking price.
Many obstacles can hinder prospective homeowners from securing their dream property and being gazumped by someone with deeper pockets is one of them. It involves the seller backing out of an agreed sale due to a higher offer from elsewhere and either accepting or asking for more money from the original buyers.
“The recent boom has brought back an ugly side of the market,” says our Head of Sales at Mulgrave Properties, David Smith. "Given that Yorkshire real estate is so red hot right now, it is perhaps unsurprising that people are willing to pay over the odds for their dream home.
"Research suggests three-quarters of potential purchasers would consider gazumping if a property is already under offer. Meanwhile the prospect of being gazumped is said to be skyrocketing stress levels for those looking to climb the property ladder, with 81 per cent of homebuyers waiting for their purchase to complete expressing concern that another potential buyer might swoop in.
The pandemic property frenzy has seen both demand and prices soar and with huge stamp duty savings still up for grabs, competition remains fierce. But at Mulgrave Properties, an increase in interest will never mean an increase in cost.
Now more than ever, our endeavour is to help people achieve their dream of owning a new home. Gazumping has no place with us and provided that contracts are [typically] exchanged within six weeks, we will not consider higher offers under any circumstances for the duration of the reservation period and the price cannot increase. Meaning you can rest assured that as soon as you have reserved your property, you won't be forced to pay a higher price than promised. No hideen extras."
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