Gazumping Ads Legal?

[Statistician]

Since when has it been acceptable to advertise for gazumping, whereby an offer has been accepted?

Part of property description advertised by the EA - see below link on rightmove:

"We are acting in the sale of the above property and have received an offer of £230,000. Any interested parties must submit any higher offers to Your Move Bexleyheath agent before an exchange of contracts takes place."

http://www.rightmove.co.uk/property-for-sale/property-17146329.html?backListLink=%2Fproperty-for-sale%2Fmap.html%3FlocationIdentifier%3DSTATION%255E8252%26minPrice%3D200000%26maxPrice%3D300000%26maxDaysSinceAdded%3D1%26minBedrooms%3D3%26maxBedrooms%3D4%26displayPropertyType%3Dhouses%26oldDisplayPropertyType%3Dhouses%26radius%3D1.0%23_includeSSTC%3Don%26auction%3Dfalse%26displayPropertyType%3Dhouses%26locationIdentifier%3DSTATION%255E926%26maxBedrooms%3D4%26maxPrice%3D300000%26minBedrooms%3D3%26minPrice%3D200000%26oldDisplayPropertyType%3Dhouses%26previousSearchLocation%3DBexleyheath%2520Station%26radius%3D1.0%26searchLocation%3DBexleyheath%2520Station%26searchType%3DSALE%26useLocationIdentifier%3Dfalse%26box%3D0.11175%2C0.14076%2C51.45299%2C51.46636%26popupPropertyId%3D17146329%26mapType%3DMap&fromMap=true

[jonb]

This is most likely a reposession sale where they are required to do that.

[6538]

This is most likely a reposession sale where they are required to do that.

Sounds like it. The Mortgagee who has taken it into possession has a duty to obtain the best price reasonably obtainable on the day of sale. Although an ad like the one above isn't stricly a requirement when a property is sold by the mortgagee lots of them do it as it provides greater evidence that they have discharged their duty satisfactorally.

[long time lurking]

Yep most likely a repo seen a lot around my way advertised like that ,and after siting on the market for several months with a offer of £x they all of a sudden have a new offer of £x `s which is always a fair bit lower than the original offer ,which is what the bank has to try to achieve and is almost certainly not a genuine offer

Also another trick they use is to advertise them at one price then within a week or so they then change the add to we are in receipt of a offer of £x which is normally a few grand above the original price ,and you are invited to offer above that ,but in most cases the above happens after a few months and if it`s a reasonable price it then sell`s BTW this is the bottom end of the market the middle to top is still in la la land

[MonkeyNuts]

Yeah probably a repo.

But 230K for that place, depressing.

Just goes to show prices in London have not budged much since the peak.

[bumpy]

Must be a prime area to warrant all that steel on the windows and doors.

BTW whats all that white stuff oozing across the rear courtyard?

[6538]

Yep most likely a repo seen a lot around my way advertised like that ,and after siting on the market for several months with a offer of £x they all of a sudden have a new offer of £x `s which is always a fair bit lower than the original offer ,which is what the bank has to try to achieve and is almost certainly not a genuine offer

It might be. It's a forced sale so lots of people will think it a good idea to put a low offer in on the off-chance that the original one will fall through so they're ready to step in to the breech and get it on the cheap. I would - and have.

[gilf]

Must be a prime area to warrant all that steel on the windows and doors.

I think that's pretty standard these days, especially for a repo.

Although that place is on the main road and a total dump, I'd suggest they bite the hand off the person offering £230,000 because that's twice what its really worth.