Gazumping - Tips from your local Cloverdale Real Estate Specialists
Blog by Bettina Reid | August 16th, 2016
Well I am sure you are looking at the headline and thinking autocorrect has changed our words into something that does not make sense.....but believe it or not "Gazumping" is actually a word. It is the term used to refer to a Seller accepting an offer from one buyer then accepting another higher offer after the fact. Thus bumping the first one.
Clients of ours were explaining how they so much prefer how we practice real estate here in BC and Canada overall. Because they are from the UK and their practices are drastically different then ours here. One of many different ways is the practice of "Gazumping". In fact we as Canadians should be happy to know just how much more democratic and just our society here works in regards to buying and selling homes.
I couldn't believe how business could possibly be done and done well with this practice and our clients mentioned deals falling apart all the time in the UK because of Gazumping. After googling the word when I got home from my meeting with our clients, I wasn't surprised to read an article from May of this year that mentioned there are over 200,000 deals a year that fall apart from this insane practice. Read the article here: Gazumping
Buyers here in BC over the last year have been extremely frustrated with multiple offer situations...but at least they knew once they had a firm offer there was no way they could lose the home. The stress that Buyers have been under with being a part of multiple offer situations, has also been felt by us as we try to help them thru the process and of course do our best to help them win. But I cannot imagine the stress that we would all be feeling if we were dealing with the threat of deals falling apart over and over again.
'Gazumping' is the term used to refer to when a seller accepts an offer from one potential buyer, but then accepts a higher offer from someone else. The first buyer is left in the lurch, and either has to offer a higher price or accept that they have lost that home and continue looking. http://www.home.co.uk/guides/buying/gazumping.htm