In a rising market, with limited stock, the practice of gazumping often rears its ugly head. Whilst I have heard a few attempts to gazump, I am yet to see a client miss out on a purchase due to gazumping. The attached article from the Real Estate Institute of NSW outlines the practice. Rules of Gazumping
Our best tips to avoid gazumping:
- Get your preapproval in place early so that when you do find the right property, 90% of the bank’s work is done.
- Where possible arrange an independent valuation up front and keep in mind that, in a lot of cases, we can arrange this for you or advise you whether a valuation is even required.
- Have your 10% deposit ready to go in cash or a deposit bond. A deposit bond is an insurance policy for the vendor. We can provide this through two different sources, guaranteeing you the lowest cost bond each time.
If push comes to shove, the team here at Regfin have been lending long enough to know when a deal is a deal and can provide considerable comfort should you need to act quickly.
Lately, we have spoken to several agents on the topic of gazumping lately and found that they are universally opposed to the practice (despite the implications of the article) and are not seeing it in practice locally.