Gazumping – and why it benefits no one, least of all agents
Here is one of the most common scenarios when it comes to gazumping:
You agree a price with the seller.
You market the property.
You get loads of viewings straight away.
You agree an offer.
Two weeks pass…..
One of the original viewers bids.
Law requires you to pass on offer….
Seller decides they like higher offer.
Bidding war ensues, four buyers bid.
Best bids [nirvana for many] date set.
Property exchanges with chosen buyer.
So, through no fault of their own the agent is left with the following….
Three unsuccessful buyers pissed off they couldn’t buy and will never talk to selling agent again.
One successful buyer pissed off they had to pay so much and will never talk to selling agent again.
One quizzical seller who might think you undervalued in the first place – unless this was your deliberate strategy, and not many agents win listings on that basis.
The extra commission generated by a higher offer is minimal – and certainly not worth the hassle, e.g. selling a £300k property for £320k at average fees might generate an extra £200.
So, given how much bad press agents get on this subject and that it’s no fault of theirs and they’re accused of only doing it for higher fees – perhaps estate agents should mention the above when the press implies gazumping is their fault.