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geranium

Gazumping / Central London Update

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A month ago we were gazumped, having had an offer accepted on a flat in EC1. As renting STRs we could probably have exchanged within a month.

I spent a lot of time sorting out mortgage and solicitor but luckily had not spent any money on the purchase, when a few days later we were told that someone else had offered 6% more. We didn't feel the flat was worth 6% more let alone more than that so stepped back and let them get on with it. We also mentioned that if their sale fell through we would still be there and would like to hear from them.

We have since seen the flat re-advertised by a new agent at the 6% more price. Obviously the sale fell through but they did not want to go back to us at the lower price. We could have exchanged by now. I wonder if they lost out on the place they are buying too. This shows that gazumpers take a risk, as do gazunderers. You want more money? You take a risk trying to get it.

While asking prices in Islington / City seem to be routinely £100k more (ie £650k for 3 bed flats, houses, rather than £550k) than they were exactly a year ago, I have seen some price reductions beginning to come through. The same properties are coming back on Prime Location with lower prices. So maybe it's not quite a strong as Rightmove have been making out?

Edited by geranium

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I have started to see a few price reductions breaking through in the South East London areas I am monitoring.

I really think that another IR rise, or merely the herd thinking there is a possibility of an IR rise and it really will be game over. The bullish sentiment that has been whipped up has no grounding apart from media spin.

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A month ago we were gazumped, having had an offer accepted on a flat in EC1. As renting STRs we could probably have exchanged within a month.

I spent a lot of time sorting out mortgage and solicitor but luckily had not spent any money on the purchase, when a few days later we were told that someone else had offered 6% more. We didn't feel the flat was worth 6% more let alone more than that so stepped back and let them get on with it.

Had a similar experience - put in an acceptable offer, only for them to come back a couple of weeks later and say they had recieved a higher offer (after the property had supposedly been taken off the market :angry: )

So I put in a higher offer myself - sat back for a couple of weeks, withdrew, and dropped them in the sh**. :D

Ah, there is no joy like Schadenfreude

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Sounds like there never was another buyer. Either the seller changed their mind or the agent was playing with the price to see how far you would go.

Get a friend to view it and put in an offer 20% below. :lol:

The whole housing market is a game, I'm playing with my toys elsewhere until the inevitable fallout occurs.

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Had a similar experience - put in an acceptable offer, only for them to come back a couple of weeks later and say they had recieved a higher offer (after the property had supposedly been taken off the market :angry: )

So I put in a higher offer myself - sat back for a couple of weeks, withdrew, and dropped them in the sh**. :D

Ah, there is no joy like Schadenfreude

Naughty!

But :lol:

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Sounds like there never was another buyer. Either the seller changed their mind or the agent was playing with the price to see how far you would go.

Get a friend to view it and put in an offer 20% below. :lol:

The whole housing market is a game, I'm playing with my toys elsewhere until the inevitable fallout occurs.

I wondered if there never was another buyer too - not at the time, but when I saw it advertised afresh. However, they had already had an offer accepted on the property they wanted to buy so I don't understand why they would have waited 6 weeks after having rejected our offer to readvertise it.

I think their purchase must have fallen through which would be bad news for them as they would have had an offer accepted off the back of 2005 advertised prices whereas it's all gone up a notch in 2006 in the area they were looking in (still London). Otherwise they would call us wouldn't they, instead of re-advertising at a higher price?

If they get in contact in - say - a few months time, after the property's been languishing at the higher asking price, I won't be that tempted. Apart from anything else, the moment passes. Also, why should I have to wait 4 months to pay the price I thought was fair at the outset?

Edited by geranium

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Sounds like there never was another buyer. Either the seller changed their mind or the agent was playing with the price to see how far you would go.

Highly unlikely! i'm sure it was just a case of good old fashioned greed!

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Highly unlikely! i'm sure it was just a case of good old fashioned greed!

I'm not so sure, I think this practice is common.

My Dad put in an offer on a place that had been for sale for months. Offer was accepted, but a day later agent phones to say they've had another offer at asking price. My Dad stopped by at the vendor's house to ask about the new offer (the cheek!), vendor new nothing about it.

2 days later the vendor swapped agent, and a new board was up.

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I'm not so sure, I think this practice is common.

My Dad put in an offer on a place that had been for sale for months. Offer was accepted, but a day later agent phones to say they've had another offer at asking price. My Dad stopped by at the vendor's house to ask about the new offer (the cheek!), vendor new nothing about it.

2 days later the vendor swapped agent, and a new board was up.

I really cannot fathom the logic of this????!!

What a dumb EA!! :rolleyes:

They've got a sale where, it seems, buyer & seller happy at agreed price. Then by trying to get a few thousand more (i'm guessing a bit there) and a negligible increase in commission, they manage to lose a perfectly good buyer, p*ss off their client and lose any chance of some commission!! Bizarre.

Thankfully, i can only go my experience, far from this practice being common i've never heard of it.

Despite the fact that inventing offers is illegal!

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Had a similar experience - put in an acceptable offer, only for them to come back a couple of weeks later and say they had recieved a higher offer (after the property had supposedly been taken off the market :angry: )

So I put in a higher offer myself - sat back for a couple of weeks, withdrew, and dropped them in the sh**. :D

Ah, there is no joy like Schadenfreude

God, don't let the expats hear that or they'll lynch you :lol:

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I really cannot fathom the logic of this????!!

What a dumb EA!! :rolleyes:

They've got a sale where, it seems, buyer & seller happy at agreed price. Then by trying to get a few thousand more (i'm guessing a bit there) and a negligible increase in commission, they manage to lose a perfectly good buyer, p*ss off their client and lose any chance of some commission!! Bizarre.

Thankfully, i can only go my experience, far from this practice being common i've never heard of it.

Despite the fact that inventing offers is illegal!

A dumb EA indeed. Perhaps "common" was unfair. But its not the only instance of this behaviour I've come across.

Inventing offers is illegal, sure, but judging by the Whistleblower program, it doesn't stop some EAs from involving themselves in it or several other illegal and dubious activities. With no enforcement I guess they can get away with it ....

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Inventing offers is illegal, sure, but judging by the Whistleblower program, it doesn't stop some EAs from involving themselves in it or several other illegal and dubious activities. With no enforcement I guess they can get away with it ....

Agreed 100%! The sooner something is done by way of regulation so that the rogue elements are shown the door the better for all. I work as an EA and believe i deal with both buyers and sellers honestly, fairly and politely. It would benefit me no end if there were fewer, regulated EA's so that we could show that many of us would like to be seen as a proper profession like surveyors/ property lawyers etc rather than the national joke it seems to be at present. :(

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I have started to see a few price reductions breaking through in the South East London areas I am monitoring.

I really think that another IR rise, or merely the herd thinking there is a possibility of an IR rise and it really will be game over. The bullish sentiment that has been whipped up has no grounding apart from media spin.

When I have estimated gross rental yields for London properties, the numbers seem much better than other parts of the country that I have tried it for. Here in Leicester and some other towns, 4.something percent seems to be the number I come up iwth most often. In various parts of London, 6% seems possible, provided my estimates are accurate.

Hence I'm not too surprised if the London property market is more resiliant than some other places.

Billy Shears

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When I have estimated gross rental yields for London properties, the numbers seem much better than other parts of the country that I have tried it for. Here in Leicester and some other towns, 4.something percent seems to be the number I come up iwth most often. In various parts of London, 6% seems possible, provided my estimates are accurate.

Hence I'm not too surprised if the London property market is more resiliant than some other places.

Billy Shears

difficult to get much over 4% in surrey as well.

London's property market seems to have a different set of rules to the rest of the country

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  • 301 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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