What is Gazumping?

Gazumping occurs when you have put in an offer to buy a house and at the last moment someone comes on with a higher offer. Legally the owner of the house has the right to change his mind and sell to the highest bidder. However it can be a frustrating business because the process of buying a house can be very slow, meaning that rising house prices encourage people to increase their offer at the last moment.

With many £1000s at stake it is worth considering various things to prevent gazumping.

See more on Gazumping in the UK Housing Market

UK Housing Market



Anonymous Anonymous said...

Option 1 your maths is not strictly accurate!

How does your mortgage charge interest monthly or annually? it can be important. To make my example easy assume annually in advance
Sum outstanding 100,000 10,000

Interest 6.75-1.85% 4900 490

Repayments 9044 9044

Owing end Y1 95856 1446
Interest Year 2 6.75% 6470 98

Total interest 11370 588

Crude average % pa 6.64 2.99

Average discount from 6.75 isn't 0.925 in either case
didn't they teach you you can't average % arbitrarily

You have a mathematical lodger what does he say

March 24, 2007 at 1:08 AM  

Post a Comment

Subscribe to Post Comments [Atom]

<< Home