Gazumping goes on every week - is it fair or just greed on the vendors part?

Gazumping happens when a buyer reaches a verbal or even written agreement to buy a property with a vendor, however before the “contracts are exchanged” a second buyer comes in at a higher price, or offers better terms, and contracts are instead exchanged with them – leaving the first buyer high and dry.

Is it a fair practice? Probably not if you’re the buyer who missed out, but if you’re the successful buyer or the seller then I’m sure you’re going to be ok with it.

There are arguments on both sides as to whether the system should be changed or left the way it is. However before we go down that road the question that should be answered is “if it was to change, what would the new system be?”

After all, people make verbal commitments all the time, even written ones, and then don't follow them through. Whilst I think the current system is unfair at times, I don’t think there’s much point in changing the current landscape unless there is a better and fairer system to move to.

My advice to any buyer is if you’ve reached a verbal ‘offer and acceptance’ then you need to follow up with the paperwork quick smart because until those contracts are exchanged you haven’t bought anything.

To avoid unnecessary delays it’s best to have your finance already in place before you even start your property search and organise your solicitor to be ready to review the contract.