Doug Crawford, CEO of My Home Move, comments on the return of gazumping:August 24, 2015
“Sellers trying to take advantage of the lack of supply in the housing market has led to an increase in gazumping in some areas of the market. Many feel little sense of urgency and speculate that a higher offer could be around the corner – even after a sale has been agreed. RICS* data shows that the number of sellers is currently at a record low, which contrasts the spike in buyer numbers driven by low mortgage rates and has created an imbalance between supply and demand.
“Gazumping takes place when a transaction breaks down due to a seller accepting a higher offer from a different buyer. When recently surveyed, a quarter (25%) of our conveyancers have seen a jump in gazumping, and a third (36%) have seen an increase in the number of sellers pulling out of transactions. Not only this, but a further 62% have seen an increase over the last six months in the number of sellers asking for more money during a transaction.
“Supply side issues will always give sellers power over buyers in the market, and they will naturally try to make the most of this situation.”
*RICS Residential Market Survey, June 2015