What does 'Gazump' mean?
Gazump
Where a property is under offer but another buyer makes a higher or better offer, the second buyer is said to have 'gazumped' or be 'gazumping' the first buyer. This is because before contracts have exchanged a property is only under offer and the seller has no legally binding agreement to actually sell.
Note it is possible to gazump another buyer not exclusively by offering more. You may, for example, offer slightly less but have no property to sell and so be a more attractive buyer. The original buyer will loose any legal or survey fees they have paid and as such some companies offer 'gazumping insurance' for this.
Search Results for 'gazump' in How to Really Buy a Property
Chapter 12:
Choosing a Conveyancer or Solicitor
"...One, two or three solicitors working in an office may seem all very cosy. This is the traditional model but in a rising market with much activity they can very quickly become overloaded with work. Holidays, illness or someone leaving only compounds this problem. They may have been recommended to you by a friend or a colleague but this will be little consolation if they are slow and you get gazumped or the vendor pulls out, frustrated at a lack of process and assuming you are not serious about the purchase.
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Chapter 15:
How to Really Make an Offer on a Property
"... to their absolute maximum budget and to the large part they are actually wrong.
The agent simply wants to get the deal agreed in a way that he can be sure no one else in his office will gazump his applicant, you.
To put it another way if the Estate Agent is being paid 2% of the sale fee and..."
"...To put it another way if the Estate Agent is being paid 2% of the sale fee and the negotiator is getting 10% of that then on a £240,000 flat the negotiator is going to be paid £480. If you have offered £235,000 and the negotiator is trying to get you to the asking price he is not trying to get £10 (the commission he would earn on the extra £5,000), he is trying to make sure you do not get gazumped!
..."
"... trying to make sure you do not get gazumped!
Although he doesn't really care if you get gazumped because he likes you, he cares because if it is one of his colleagues he won't get paid anything. If you really like the property listen to advice.
- How Much to Offer and When -
This is the..."
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