25th November 2014
Brighton has become the gazumping capital of Britain as 35% of people surveyed said they have been a victim of this frowned-on practice in the past.
This figure compares to 22% of people across the UK population as a whole, according to the study by eMoov.co.uk, the online estate agency.
Being gazumped, is when another buyer comes in with a higher bid after your offer has already been accepted by the seller, and it can be an expensive business for would-be buyers as they may lose the money spent on a survey, some of their legal fees and sometimes costs relating to securing a mortgage.
Outside of the South East the average drops from 22% to 18%. Birmingham figures show 27% of property buyers in the area have been gazumped with Sheffield at 22%, Bristol at 21%, Leeds and Nottingham at 20%.
The research also found that the higher the price of the property, the more likely you are to be gazumped. Of those that had been previously gazumped 27% were over properties of £500,000 or above. This dropped to 25% for properties valued between £200,000 and £500,000 and to 19% for properties under £200,000.
Russell Quirk, chief executive of eMoov.co.uk, said: “It is one of those things in the current structure of property purchasing unfortunately. Buyers that have displayed honest interest in a property only to be let down by owners with pound signs in their eyes, often encouraged by traditional estate agent looking to increase his fee percentage. “
In Liverpool gazumping affected just 13% of people, but Quirk warned: “If these markets cool off too much, we could see gazundering coming back in. This is a tactic in areas with little demand where the buyer calls up just before the exchange of contracts and demands to pay less.”