Gazumping in this HOT UK Property Market
In life one should treat others as they want to be treated. We have had numerous times offers accepted for our social HMOs and social buy to let and we have been Gazumped. For those of you who do not know what this means….rather simple..An unethical seller, is when a seller accepts an offer, usually a higher offer, from another buyer after they have agreed to sell their house to the first buyer ( US).
However we feel this property would not have luck or a good outcome thus we have faith that we will find another property better, cheaper, bigger thus more profitable. The bigger the Social HMO the greater the value. We have sold some of our bigger social HMOs to ex govt officials who are looking to replace a pension as well as Hong Kong investors.
The big problems with gazumping are that it can be expensive, time-consuming and stressful. We may have spent money on a survey, legal fees and other expenses which we cannot get back. Basically we have to go back to square one and start looking for another property all over again. We know that this is part of the hot property game in the UK at the moment.
We will never accept a higher offer on a property that we are selling to an investor. We find it extremely unethical. On the contrary we request non refundable reservation fees of 2k if buyers pull out. This covers our legal costs and all of our time and effort.
Would be nice if ethics would be first and foremost in UK Property transactions.
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