Dubbed "the property curse of the 1980s", gazumping is becoming commonplace again. We recently conducted a survey with YouGov of 1,300 British homeowners and found that one in ten people have been gazumped as a result of a sneaky move to undercut would-be home buyers.
As people clamour to get on the property ladder, "2.57 million Brits [are] losing out on a property purchase because another buyer was able to present a more attractive offer," according to Market Financial Solutions.
And it's not just the disappointment of losing your new home, but also losing money after you've got the ball rolling on legal and financial matters. Our research found that 53% of those gazumped had lost money, on top of the property they had hoped to purchase, with 14% of those people losing more than £1,000 to intermediaries including solicitors and surveyors.
With an average processing time of six weeks for a mortgage from a traditional high-street lender, this can delay the purchase process while solicitors are already carrying out searches. If the buyers have not requested for the property to be taken off the market during this time, it leaves them open to gazumping should another buyer out-bid them.
Shockingly, property buyers who get gazumped lose an average of £2,899 in fees, which equated to more than £4.4 billion being lost in the UK in the last year, according to Which?. This is due to the cost of local searches carried out by conveyancers, which cost between £250 and £300, in addition to legal fees charged by the conveyancers (varies from practice to practice) and the valuation fee charged by mortgage lender for assessing the property, which is between £150 and £1,500.
See our Gazumping infographic