Gazumping sounds like something that might happen during a board game, but in reality, it can be extremely distressing for buyers in the property market.
Gazump
VERB – WITH OBJECT
- Make a higher offer for a house than (someone whose offer has already been accepted by the seller) and thus succeed in acquiring the property.
‘the trio are fuming after they were gazumped by a property speculator’
‘gazumping has returned, as there is a shortage of good properties’
- Swindle (someone)
‘I gazumped a friend of mine with complete success last night’
ORIGIN
1920s (in gazump (sense 2)): from Yiddish gezumph ‘overcharge’. gazump (sense 1) dates from the 1970s.
Gazumping is a term used in Australia when a seller (especially of property) accepts a verbal offer of the asking price from one potential buyer, but then accepts a high offer from someone else. It can also refer to seller raising the asking price at the last minute, after previously verbally agreeing to a lower one.
Remember though your offer has been accepted it is not yet time to celebrate just yet.
Neither party is legally bound until contracts have been exchanged. Gazumping can be heartbreaking and also expensive if you do not have all your ducks in a row. Unfortunately, the only thing you can do is be prepared to move quickly to exchange by:
- Selecting your conveyancer as part of your purchasing research
- Requesting a copy of the sale contract as soon as possible.
- Having your conveyancer review the contact
- Have your finance conditionally approved.
