Article: Gazumping is becoming more frequent.
I have noticed an increase in the amount of gazumping occurring, here are some tips to reduce the likely hood of being gazumped.
- Have your loan finance pre-arranged, and ensure you can pay the 10% deposit, so there is no delay before attempting to exchange contracts on a property. I recommend Donna Turner from Rams. Donna at Rams Home Loans Newcastle South (0249564311) offers competitive home loans to the major banks and she focusses on customer service and offers the quickest pre- approval process. Obviously to avoid gazumping prompt processing of the finance is crucial.
- Obtain a copy of the sale contract as soon as possible and have it examined by either your licensed conveyancer or solicitor. I recommend Bruce Dawson Solicitors and conveyancers 0249548666, firstname.lastname@example.org
- Seek to exchange contracts with the vendor as soon as possible. Anyone purchasing residential property has a five-day cooling off period commencing from the time of exchange of the contracts. Only the purchaser can waive the cooling off period and it can be extended by agreement. During this time, you can do a building and pest inspection and have the contract examined. However, if you rescind the contract during this period, you forfeit .25% of the purchase price to the vendor, as the property has been taken off the market for a period of time. FJ Now Pest and Building aims to provide you with your report in a prompt manner so you can be confident in your decision.
- Negotiate firmly insist on the agent passing your bona-fide offers to the vendor and obtain written proof of this occurring. Be ready to exchange with a signed copy of the contract and follow through on the exchange process yourself or with another trusted person to ensure exchange. If you are advised that other offers have been made, demand to see written evidence. If you are certain that you want the particular property, be ready to possibly increase your purchase offer to the vendor.
- The vendor is not generally compelled to sell to any specific person and can change their mind at any time prior to the exchange of contracts. Vendors may not necessarily sell to the highest offer, but may accept a lower offer from a prospective buyer. If you can try to meet the vendor they are more likely to proceed with your offer if they have met you.
- I understand the frustration of loosing that home you just found. If you are gazumped you may be out of pocket for some costs building and pest inspections solicitors costs. To help reduce the inspection costs, I offer my clients that purchase a report from FJ Now Pest and Building and are unsuccessful in purchasing the property a substantial discount on their next report.