Insure Yourself Against Gazumping

The custom of "gazumping" (that is, a vendor accepting an offer higher than that which he has already accepted) happens more often that you think.

I recently located an offer for a unit in Sydney's western suburbs. All the figures looked great and I conception the asset would be an exquisite increasing to my portfolio. On acceptance of my offer, I was thrilled. Until it was "gazumped". That's right! I conception it was 'in the bag' but the vendor went on to accept a higher offer after having acceptable my offer.

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While there are structures in place to stop this from happening, the custom of gazumping is still rife. Some vendors use more than one agent and pit them against each other, not revealing to one agent when an offer has been acceptable by another. Some agents have been known to encourage offers even after a vendor has accepted. The fact is, you never know for sure until it's all in writing, signed, sealed and delivered.

The good news is that there are often sufficient properties for sale in a desirable market. Possible investors can keep a list of convenient investments, and by doing so they can protect themselves from being gazumped.

As it turned out, for me, I would have pulled out of the above mentioned asset anyway - the body corporate finances were a mess! I managed to find a similar asset with a slightly better yield in next-to-no time.

It's easy to short-list a whole of properties in a given area. So if you don't get your first pick, there's always the next on the list!

Insure Yourself Against Gazumping

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