What would you do if you were gazzumped

[Noelc]

After being advised today my signed contract has been gazzumped by 20K and the vendor now has two contracts to choose from (2 different RA) when he meets his solictor Monday morning to sign, what would you do?

I can match this which still leaves the mortgage <80% of the property value. The property is unique and is still a reasonable price with the extra 20K.

20K over thirty years???????????

 

[Monopoly]

Nothing!!

For two reasons:

1. There is nothing to suggest that this other offer (20K more) is real.
2. No property is worth my uping my written offer by 1c let alone 20K. You start giving in to that kind of game, and the REA's will smell you coming from a mile.

Deal with it, you've been gazumped. It's a sad reality in this business. It just wasn't meant to be. And who knows, the 20K+ more deal may end up falling through, in which case, you may get your second chance. But you have to ask yourself....is it worth being disadvantaged by an REA who knows that you're willing to pay extra??? If it is, then good luck to you. I hope the deal falls through for the other guy.

 

[Noelc]

Thanks Monopoly.
I guess your right. The REA is a bit P*** as well because the gazump came from another agency (The property was listed with three REA,s).

I read that I can seek evidence of the second contract and offer but not sure what that will do??

 

[Monopoly]

The REA is a bit P*** as well because the gazump came from another agency (The property was listed with three REA,s).
I'll bet he was!!!

I read that I can seek evidence of the second contract and offer but not sure what that will do??

I think this only applies if the vendor had signed the contract, and even then it is no guarantee as "cooling off" periods may be in play when he reneged on the deal.

But as you say, if you could obtain evidence, what good would it serve???

Don't worry, other deals (without the gazumping) will come along, and when it is meant to happen, your name will be stamped all over it!!!

All the best,
Jo

 

[Syvergy]

Did the owner agree to the price as well? Did you both sign the contracts?

If thats the case, then the case is closed and the owner cannot accept any more offers other then backup offers?

 

[Mr. Fabulous]

Let it go and move on. It's just a house.

Mark

 

[simonjulie]

Nothing!!

For two reasons:

1. There is nothing to suggest that this other offer (20K more) is real.
2. No property is worth my uping my written offer by 1c let alone 20K. You start giving in to that kind of game, and the REA's will smell you coming from a mile.

I agree
Simon

 

[sailor]

Hi Noel, how frustrating and disappointing for you. No I wouldn't up the offer. Even if the other contract gets signed by the vendor, that's still no guarantee their contract will settle, and you might find the vendor chasing you to sign yours. Or else, as Monolopoly says there might be another one with your name stamped all over it.

Keep a positive attitude. Don't let this event get you down. The last house I bought had 3 contracts fall over, before the vendor finally approached me and asked if I was still interested! How good is that!

 

[alexlee]

As the others have said, it's disappointing, but that's how this business works. Whether the other offer is real or not is irrelevant. Get your contract back and move on. You've done the numbers, made your offer, and someone has offered more.

There is no such thing as a unique property. Tomorrow will bring another deal.
Alex

 

[Noelc]

Did the owner agree to the price as well? Did you both sign the contracts?

If thats the case, then the case is closed and the owner cannot accept any more offers other then backup offers?

No Synergy the owner did not sign

Synergy the owner agreed to price. Even met the wife and showed her around the property after we agreed. Then along comes another RA with a higher offer??

 

[The Y-man]

No Synergy the owner did not sign

Synergy the owner agreed to price. Even met the wife and showed her around the property after we agreed. Then along comes another RA with a higher offer??

Nothing is set until you get that signature from the vendor

To the others who have commented however, this is a PPOR we are talking about - not an IP right?

As a PPOR, I feel there is a slightly different approach required, as it is a lifestyle decision, and finding the "right" property isn't just a matter of numbers.

Perhaps try to find out what the other offer entails - settlement periods, conditions etc. Try not to get into a bidding war, but you might want to revise your offer.

Cheers,

The Y-man

 

[alexlee]

No Synergy the owner did not sign

Synergy the owner agreed to price. Even met the wife and showed her around the property after we agreed. Then along comes another RA with a higher offer??

To be fair, if it was you selling, and someone came along and offered you another $20k.....what would you do? That $20k would mean nicer furniture for your new place, a better car, education for your kids..... I'd take the extra $20k. That's why there are contracts. Don't take it personally. The owner is just looking out for themselves. Flip it the other way, would you offer more money to the seller because they're nice?
Alex

 

[Noelc]

To the others who have commented however, this is a PPOR we are talking about - not an IP right?

You are right Y-Man this is/was our dream PPOR after 7 seven months searching. It is more than just numbers. If this was an IP it would not matter to us "Just numbers"

Anyway still got a trick or to up my sleeve that may sway the deal before the vendor signs/exchanges contracts Monday.

But at the end of the day if its not meant to be its not meant to be.

I doubt I will allow myself to be pressuerd into coughing up 20K to some one who made a verbal agreement, shook hands with the wife and spent time with her showing her around her new dream home.

 

[lizzie]

don't get sucked in. i admit that, at the height of the buying boom on the east coast, i upped an offer by $10k under similar circumstances and won the house.

the other buyer went on to make an offer on another house, for less money, and then his purchase on that other house fell thru due to lack of finance.

lesson i learnt was that if i had bided my time and not upped my offer, i would've gotten the property for the $10k less. i panicked.

if it is meant to be - the house will be yours. if not then another, more special property is just waiting for you to find it.

 

[Bandita]

Hi NoelC,

Not that this helps you now - but maybe with your next purchase if this falls through - we always make our offer subject to a time period - offer valid for 24 hours for example - we think is reasonable timeframe for vendor to make a decision before anyone can jump in with a higher offer - if this is the price the vendor wants, he'll sign up and it saves you from getting the RE agent to find other interested purchasers to beat your offer due to the lack of time.

By the way, if this one falls through - there are many other 'dream PPOR' out there just waiting for you to find them! Good luck!

Cheers,
Jen

 

[BoatBoy]

if it is meant to be - the house will be yours. if not then another, more special property is just waiting for you to find it.

The market we are after , specificaly old QLDer's on 2 or 3 titles are snapped up fast, and a lot of the time over the ask.

These don't come along very often at all, and we have been gazumped for the sake of a few grand more than once.

These day's we just pay the ask, if there is still an earn in it 20+% as when someone else get's a sniff it end's up going over the ask.

The one i'm on now we are negotiating over him 14 day settlement and me 90 day settlement, and i'm mildly panicked that someone else will find it and i will lose it.

As yet it is not on RE.com or in the window.

BB

 

[Kristine..]

Hi JenD

I was doing some 'after sales service' for a couple of my customers last week, showing a prospective corporate tenant through their places, and we were discussing making offers.

He said: 'I always submit offers subject to a time clause. Not only that, I make it clear this is my highest and best offer. If the vendor doesn't make a decision within the time frame I advise in writing at the time of making the offer that my offer will be reduced for each day's delay past the deadline'

He laughed and said 'They usually lose the plot at that point - they see their sale vanishing over the hill. I never take procrastination from a vendor - there are plenty more fish in the sea and my time is valuable!'

This chap is a professional buyer / leaser. Perhaps we could all take a leaf out of his book!

Cheers

Kristine

 

[Syvergy]

No Synergy the owner did not sign

Synergy the owner agreed to price. Even met the wife and showed her around the property after we agreed. Then along comes another RA with a higher offer??

That's a big shame.

When you are serious about property, you're better off pushing the REA to get your offer to them and to get a response back ASAP. The second they either sign and agree to that offer, or sign and counter offer - they have accepted the contract. That way, you either have the house, or you have time to think about the counter offer, since they have signed it and cannot receive any other offers unless you pull out.

In my case, I made sure the REA took my offer to the other party instantly, and in which case we were able to clamp down a price over a few days.

 

[yadreamin]

After being advised today my signed contract has been gazzumped by 20K and the vendor now has two contracts to choose from (2 different RA) when he meets his solictor Monday morning to sign, what would you do?

I can match this which still leaves the mortgage <80% of the property value. The property is unique and is still a reasonable price with the extra 20K.

20K over thirty years???????????

Noelc, did you actually do the sums to get to you offer for the property or have you just gone in low hoping for the best? If you have just gone in low with fingers crossed then go and speak to the vendor. They have met your wife so there is a personal contact there, tell the vendor the RE has told you about the other offer, see if its true!!!
I got guzumped once, we were gobsmacked and disapointed to have missed the property. 2 months later l noticed the property back on RE.com l rang the vendor, she said she was too embarassed to contact us. We put in another offer 5k less than our original offer and we became proud owners of that property and still are today.
Good luck l do hope it works out for you.
cheers yadreamin