It’s a buyer’s worst nightmare. You find the property of your dreams, put in a verbal offer which is accepted by the seller. But before contracts are signed, another buyer swoops in with more cash and bang – you’ve been gazumped! The practice of ‘gazumping’ – which is defined as the refusal by property owners to formalise a real estate sale agreement until the last minute, usually because they’re holding out for a higher offer – is on the rise again in the UAE.
As ever, haus & haus are unafraid to tackle the big issues and our own Luke Remington, Managing Director, recently spoke to Brandy Scott at Dubai Eye 103.8 on their podcast to discuss how often it’s happening here, and offer some insider insights.
As a background, Luke explains how haus & haus have registered 125% more buyers year-on-year. “When you go to viewings right now there are several cars in the street and lots of people going in, and lots of offers going out,” he told radio listeners. So, with an undersupply of property and sellers being bombarded with offers, the period between an offer and a final contract being signed is ripe for gazumping. Is it unethical? Yes, said Luke. Is it illegal? Quite possibly. So, who’s to blame – sellers or agents? It’s complicated, explained Luke.
Have a listen to the interview in full to get the lowdown and understand why having multiple agencies per property could lie at the heart of the problem – and why choosing a broker with fast communication and the right values can protect you.