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Ganzanging Is The New Gazumping: Latest Peril In Buying A New Home (And 54,000 Have Fallen Victim This Year)

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http://www.dailymail.co.uk/news/article-2038972/Ganzanging-new-gazumping-Latest-peril-buying-new-home-54-000-fallen-victim-year.html

Over the years, the ups and downs of the property market have spawned a whole host of perplexing terms.

Now experts have coined another to add to the lexicon – gazanging.

The term is used to describe when a buyer is ‘left hanging’ as a seller pulls the plug on a deal at the last minute, often due to market uncertainty or a lack of a suitable home to move to.

....

More than a quarter of sellers changed their mind because they could not find a suitable property themselves, according to In-Deed’s survey of 1,001 adults.

I wonder how many pulled out because they couldn't get finance rather than not being able to find a suitable property.

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I wonder how many pulled out because they couldn't get finance rather than not being able to find a suitable property.

It's interesting if that's the case, when they're just about to sell their overpriced hovel. Facing the realities of house prices by trying to move to a larger place, or facing the reality that remortgaging wasn't the same as being handed a pot of free money? After all, they should be able to move to somewhere else at the same price.

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54,000....thats one in eight failed completions then roughly....from the sellers side, what with people offering to buy and failing to get mortgages on the buyers side being much worse, then a very high proportion of chains must be failing.

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"The term is used to describe when a buyer is ‘left hanging’ as a seller pulls the plug on a deal at the last minute, often due to market uncertainty or a lack of a suitable home to move to."

My brother has a buyer lined up for his house but can't find anything they want when putting in another £250K. They have kept their buyer on the hook for nearly 6 months now.

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And then there's those buyers who leave the sellers hanging while they exhaust all methods to raise the funding.. only to back out months later claiming a problem with the survey.

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family I know had set up to buy a house (about may ) from a bloke whose daughter worked in the EA

that was selling it . The couple are not english and and did not understand the subtleties of the house

buying mechanism , and they had arranged for exchange of contracts and completion on same day (iiuic)

and the buyer just said no on the day (maybe the day before) . It must have cost them several hundreds

if not thousands in surveyors reports and mortgage arrangements etc. (I did not want to interrogate them

on quite what happened.)

They now have another house lined up, but I hope they are going to separate the exchange and completion.

My understanding of the system, is that the purchaser pays a deposit (at exchange of contracts) which would be lost

if they (purchasers) dodnt complete . I would guess that they could ask the vendor to do the same ... and that

could cure that problem or at least compensate . I thought the idea of the home purchase pack was good

in that the vendor paid for the surveys and searches and so would minimise the buyers losses if the plug was pulled.

Think if they changed the rules , to make it mandatory when an offer is made it could help to cure some of the problems.

cheers

rockhopper

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family I know had set up to buy a house (about may ) from a bloke whose daughter worked in the EA

that was selling it . The couple are not english and and did not understand the subtleties of the house

buying mechanism , and they had arranged for exchange of contracts and completion on same day (iiuic)

and the buyer just said no on the day (maybe the day before) . It must have cost them several hundreds

if not thousands in surveyors reports and mortgage arrangements etc. (I did not want to interrogate them

on quite what happened.)

They now have another house lined up, but I hope they are going to separate the exchange and completion.

My understanding of the system, is that the purchaser pays a deposit (at exchange of contracts) which would be lost

if they (purchasers) dodnt complete . I would guess that they could ask the vendor to do the same ... and that

could cure that problem or at least compensate . I thought the idea of the home purchase pack was good

in that the vendor paid for the surveys and searches and so would minimise the buyers losses if the plug was pulled.

Think if they changed the rules , to make it mandatory when an offer is made it could help to cure some of the problems.

cheers

rockhopper

the HIP was clearly a good idea...until the VIs got their teeth into it which made it a waste of time and energy.

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54,000....thats one in eight failed completions then roughly....from the sellers side, what with people offering to buy and failing to get mortgages on the buyers side being much worse, then a very high proportion of chains must be failing.

On the plus side that means lots more fees for conveyance solicitors.

The UK's house buying system is a joke, right up to the day of exchange the whole deal can fall through for any daft reason whatsoever and without any financial consequences at all.

Does anywhere else have a tinpot system like this or is it just the UK again?

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My understanding of the system, is that the purchaser pays a deposit (at exchange of contracts) which would be lost

if they (purchasers) dodnt complete . I would guess that they could ask the vendor to do the same ... and that

could cure that problem or at least compensate . I thought the idea of the home purchase pack was good

in that the vendor paid for the surveys and searches and so would minimise the buyers losses if the plug was pulled.

Think if they changed the rules , to make it mandatory when an offer is made it could help to cure some of the problems.

Exactly.

Think there should be 2 stages:

Offer stage - Seller pays back cost of the survey if the buyer has one done and the seller then pulls out (unless the survey results have lead to a lower offer)

Exchange stage -If you have an "official" offer accepted you put say 1% of the purchase price into an account and the seller does the same. Whoever pulls out, or fails to complete within 3 months, pays the other the money in this pot as compensation.

If the buyer pulls out the seller keeps the 1% and vice versa.

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family I know had set up to buy a house (about may ) from a bloke whose daughter worked in the EA

that was selling it . The couple are not english and and did not understand the subtleties of the house

buying mechanism , and they had arranged for exchange of contracts and completion on same day (iiuic)

and the buyer just said no on the day (maybe the day before) . It must have cost them several hundreds

if not thousands in surveyors reports and mortgage arrangements etc. (I did not want to interrogate them

on quite what happened.)

They now have another house lined up, but I hope they are going to separate the exchange and completion.

My understanding of the system, is that the purchaser pays a deposit (at exchange of contracts) which would be lost

if they (purchasers) dodnt complete . I would guess that they could ask the vendor to do the same ... and that

could cure that problem or at least compensate . I thought the idea of the home purchase pack was good

in that the vendor paid for the surveys and searches and so would minimise the buyers losses if the plug was pulled.

Think if they changed the rules , to make it mandatory when an offer is made it could help to cure some of the problems.

cheers

rockhopper

They should definitely change the rules so that once an offer is accepted its legally binding - would solve all kinds of problems and prevent people wasting money on surveys etc only to have the seller pull out or worse a different buyer gazumps them at last minute (though I suppose currently that is not such a problem).

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On the plus side that means lots more fees for conveyance solicitors.

The UK's house buying system is a joke, right up to the day of exchange the whole deal can fall through for any daft reason whatsoever and without any financial consequences at all.

Does anywhere else have a tinpot system like this or is it just the UK again?

It is better in Australia, where a very similar legal sytem exists. BUT The offer by a purchaser is made in writing only, on a standard contract and if accepted is made binding on both parties with a 30 day completion. The only backtracking available is if you stipulate that the offer is subject to a satisfactory survey/searches and finance - usually done. You then find SOME people do not accept an offer without finance in principle evidence being seen by the EA. The survey would have to show something substantial to get out of the contract, like subsidence, not just a bit of a leak. Finance would have to be refused to get out that way too. You lose your deposit if it's finance unless it's related to building condition. Your fault for not sorting it out properly.

Basically people sign an offer and move 30 days later. If in doubt a building inspection can be done before offer. lots of people rent upon sale for short terms like 6 months when moving. 2 or 3 months wasted rent is better than endles failed deals causing major stress. Very common to auction homes too. Same contract. Most do a quick building inspection before bidding.

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the HIP was clearly a good idea...until the VIs got their teeth into it which made it a waste of time and energy.

No it wasn't.

That the system needed (and still does need) changing was a good idea, sadly at no point were HIPs going to change things for the better. It was a poorly thought out piece of legislation from start to finish.

I'm not sure which particular group of VIs you could be referring to? The only people who stood to benefit from HIPs were the companies providing them, so I presume that is who you mean.

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They should definitely change the rules so that once an offer is accepted its legally binding - would solve all kinds of problems and prevent people wasting money on surveys etc only to have the seller pull out or worse a different buyer gazumps them at last minute (though I suppose currently that is not such a problem).

An offer has to be subject to some things, such as the survey revealing that the place is on the verge of collapse.

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  • 333 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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