oh dear™: the end of gazumping is nigh!!!

[AtW]

Gazumping could be banned by the Government, as it has emerged that officials have held private meetings with industry to discuss bringing forward the point at which house sales become legal, in line with Scotland.

The radical move would prevent millions of British housing sales falling through as 18pc, or around 200,000 transactions collapse each year.

A major reason is a plague of buyers outbidding others who have already put down an offer, a practice commonly known as "gazumping".

It causes frustration and disappointment for buyers who think they have secured their dream home, only to find they lose it overnight to someone with more cash. It also routinely leaves frustrated would-be-buyers paying for bills for surveying and legal fees which can run into thousands of pounds, providing a further kick in the teeth.

Last week policymakers at the Department for Business Innovation and Skills (BIS) held a private meeting with senior figures at the National Association of Estate Agents, the Telegraph can disclose, in which it floated plans to put an end to Britain's gazumping problem.

This came ahead of a "call for evidence" into how the Government could make it quicker and cheaper to buy homes in Britain, which BIS will launch in the coming weeks. (AtW's comment: I'll tell you how to make it - reduce fooking stamp duty to what it used to be: 1% max!!!)

More from the source: Relief for home buyers as the Government may ban 'gazumping'*

[vetran]

And they will screw it.

we will end up with some stupid compromise that will be abused.

[RetSet]

Blah blah

I'll paraphrase for you.

The market is reasonably hot right now.
Somebody is talking to somebody else.
When the market cools down (as is happening now) people stop talking.
Rinse & repeat.

Nothing to see here

BTW, no mention about gazundering during the down cycles...

[LondonManc]

This can also mean that houses will take longer to sell. People won't accept £330k when the house is on the market at £350k then dawdle a bit hoping some Last-minute Larry™ comes in with a good bid. This has the knock-on effect of inflating the bubble and increasing tax revenues. What a bunch of shirt fronts (getting the hang of this here cock-er-knee rhyming slang now I've been down here a while).

[d000hg]

I thought general consensus was that the Scottish system was better. Certainly the English system is ludicrously over-complicated, expensive, and fraught with stress at every turn.

[original PM]

the English system works for everyone but the buyer...

and it needs to change.

It only makes sense when you have officially agreed to sell someone something for a price - you cannot then change your mind on that.

Would not get away with it for anything else - such as buying a car or a holiday....

[LondonManc]

I thought general consensus was that the Scottish system was better. Certainly the English system is ludicrously over-complicated, expensive, and fraught with stress at every turn.

The system works in Scotland because people are tight. They don't want to shell out twice on surveys, legals, etc. but accept they'll have to wait longer to get the price they're after.

[vetran]

I would like to see Offer subject to survey & searches.

Let the experts wriggle out of it.

If the bank refuses the Mortgage or has restrictions then the deal is off.

[LondonManc]

I would like to see Offer subject to survey & searches.

Let the experts wriggle out of it.

If the bank refuses the Mortgage or has restrictions then the deal is off.

I think it could be simplified down here. All legitimately incurred legal and administrative expenses incurred by the buyer should be fully reimbursed by the vendor should they subsequently accept a different offer without the original buyer retracting theirs. It would mean that gazumping could continue but only for massive amounts where it's financially worth it to the vendor. While there's the potential for money laundering, it could be easily tracked.

[GB9]

I think it could be simplified down here. All legitimately incurred legal and administrative expenses incurred by the buyer should be fully reimbursed by the vendor should they subsequently accept a different offer without the original buyer retracting theirs. It would mean that gazumping could continue but only for massive amounts where it's financially worth it to the vendor. While there's the potential for money laundering, it could be easily tracked.

A sensible approach. You must have posted on here by mistake.

Anyway, as nothing is selling around here it would make no difference.