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It’s an unfortunate truth that people don’t always tell you when you’re buying a house for the first time. Sometimes no matter what you do, you might get gazumped.
However, Phil Spencer has come to the rescue with some sage advice on how to avoid this happening to you in his podcast Move IQ. But before we get to that you might be wondering what ‘gazumped’ means.
Gazumped – what does it mean?
Before you ask, gazumped is not a made-up word by Roald Dahl/Winnie the Pooh/Phil Spencer – it is a legit property term. Gazumping is when a vendor has agreed to your offer on their house, conveyancing has already started, but then the vendor decides to back out and accept a higher bid from someone else.
If you were wondering how to use it in a sentence Phil Spencer explains: ‘It is the vendor who gazumps and it is the purchaser who is gazumped.’
Luckily, gazumping is something that doesn’t happen that often anymore. ‘It is not very prevalent in the market at the moment,’ the Location, Location, Location presenter explains. ‘Gazumping is something that tends to happen when the market is tearing away and climbing steeply.’
However, it can still happen and when it does to put it lightly it can be quite upsetting. ‘It’s very painful, it can be expensive and it’s not very nice,’ the property guru says on his podcast.
How to avoid being gazumped?
Phil Spencer explains the main reason that gazumping occurs: ‘It is a symptom of a not very nice fast-moving market and a symptom of a deal that’s not moving quickly.’
It is largely out of your hands, but the presenter explains that there is one thing that you can do to reduce the chances of it happening. ‘My advice is always to get the deal done as quickly as you can,’ he says.
‘The reality is that the longer something takes, the greater the chance that somebody involved through that transaction situation will change.’
That means you need to make sure you’re working with a pro-active and fast-working solicitor. You might also need to check in with them, the surveyor and your mortgage provider regularly just to see what stage everything is at.
‘Speed the deal up,’ says Phil Spencer, as this is not a time to rest on your laurels.
However, if it does happen to you, while you might be tempted to scream and shout Phil advises keeping this to the privacy of your own home.
‘Remain professional and get back out there. Get back out in the saddle don’t give up.’