"What's gazumping?" asks the International Herald Tribune
10 May 2007
It cost Richard Stansfield £2,000 to prepare the paperwork to buy a four-bedroom townhouse in the south London neighborhood of Balham. When the seller got a better offer, the deal was lost, and so was Stansfield's money.
Suddenly, the rival bidder pulled out and the house again appeared within his grasp for £595,000, or $1,188,000. As Stansfield, a television producer, finalized his finances, he lost out once again to a buyer who was offering cash.
Stansfield, 43, is a victim of what is known in Britain as "gazumping:" Someone swoops in with a higher offer at the last minute and breaks the other purchase deal. The practice has been around for a long time, but it has become more prevalent as surging prices and a shortage of properties trigger a ruthless contest.
Tracy Kellett of BDI Homefinders in London said the problem is that the shortage of homes prompts people to make ever-higher offers.
"There are things you can do to allay gazumping," she said. "You've got to move, don't give the vendor any opportunity to twiddle his thumbs."
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