What does 'Ghost Gazumping' mean when buying a property?

Find out what Ghost Gazumping means when you are buying a property. 'What does Ghost Gazumping mean?' plus over 150 other property related terms and jargon in plain English

Ghost Gazumping

Gazumping is when a vendor, or the estate agent, claims another person has made a higher offer on the property you are buying after you have had the Sale Agreed and that the vendor is going to accept this offer unless you take a particular course of action.

"Ghost Gazumping" is when the person they say has made the higher offer doesn't actually exist - the vendor or the estate agent has made them up in order to put pressure on you.

This is not always about trying to get you to pay more, it may be about pushing you to move faster.

The practice is usually used by unprofessional estate agents because it is a blunt instrument and ultimately an empty threat. Estate agents who know what their doing will work with all parties to progress the sale to Exchange of Contracts swiftly because they know Time Costs Deals but managing the deal is much more effective than trying to beat you with a stick!

I've never had it happen to me because I manage the deal as well and so at any one point in time I know exactly where we are in terms of who needs to do what. I also chase the deal so I keep the time between Sale Agreed (which is no more than a verbal agreement) to Exchange of Contracts (which legally locks the seller in to the deal) to a minimum.

To learn how you can do the same pick up a copy of my ebook How to Really Buy a Property.

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How to Really Buy a Property

"... 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..."

"... 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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