Read these articles and save money when buying property

      Click Here To Find Out How You Can Buy Real Estate For 90% Off The Retail Value

 

How To Avoid Being Gazumped After Putting In Your Offer For A House or Flat.

 How to avoid being gazumped

Once your offer has been accepted your search for your ideal property should not end there. You must be aware that you may still be at risk of being gazumped.

 

Gazumping has become common and it occurs when a buyer puts in an offer to the seller and so does someone else and the seller accepts the other buyer's offer. This is known as gazumping. It is common in a buoyant market.

 

There are a few steps that you can take to ensure that this does not happen to you. A few of these steps have been listed below. Using any of these methods  will ensure  that your ideal property is not taken from under your nose even by an eager buyer who puts in a higher offer price than yours.



 

  • Pre-contract deposit agreement. A third party such as a solicitor or an agent can arrange this form of contract. Both the buyer and seller hand over a small percentage of the purchase price to a third party, which is usually a solicitor. If either one of the parties involved in the pre contract agreement pulls out of the deal their deposit is given to the other party. There may be conditions attached to the contract, both you and the seller must agree to these conditions.

 

The pre-contract deposit agreement provides benefits to both buyer and seller. It shows the seller that you are serious on going ahead with purchase and also provides the buyer with security that the seller is not going to sell it to someone else even if they offer a higher asking price.



     

  • Lock-out agreements. A lock-out agreement is another way to provide security against the fear of being gazumped. You may ask the seller to take the property off the market for a specified time after you have both agreed on a price. The purchase of the property must also be completed within that specified time. You may also request for the for sale sign to be changed into an " under offer sign" at the estate agents office and at the property in question.

 

  • Buyer and seller insurance. Taking out an insurance policy to protect you from being gazumped is also another option which can be used. There are some insurance firms that will protect you against this. This policy will only pay out if the sale fails to go through after your offer has been accepted by the seller. The schemes vary from company to company and it covers you for various aspects of the house buying process. This may also end up saving you money as some of the policies may cover your valuation and legal cost. You may want to ask your mortgage provider about this or do some research on this type of insurance.