What is Gazumping and Why Do Buyers Dread It?
Gazumping is when a seller accepts a higher offer from another buyer — even after accepting yours. It typically occurs before contracts are exchanged and can result in buyers incurring time, money, and stress. While legal in England and Wales, it is widely viewed as unethical and can unexpectedly derail your entire purchase.
3 Key Takeaways:
- Gazumping is legal until contracts are exchanged in England and Wales.
- Buyers risk losing money on surveys, legal fees, and mortgage costs.
- You can reduce the risk by moving quickly and getting insurance.
What is Gazumping?
Is Gazumping Legal in the UK?
What to Do If You’re Gazumped
Being gazumped is frustrating, but you still have options. Here’s what to consider:
1. Confirm the new offer
Ask the estate agent for written proof. Some buyers are misled into bidding against fake offers.
2. Decide: Counter or Walk Away
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If the property is worth it and you can afford it, a counter-offer might win it back.
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If not, it’s often better to walk away than overstretch your budget or end up in a bidding war.
3. Know your financial limit
Don’t chase the deal emotionally. Stick to your budget and weigh the true cost, financially and mentally.
4. Recover what you can
If you’ve already spent money (surveys, solicitor fees), check if you’re covered by home buyer protection insurance.
5. Learn for next time
Use this experience to be better prepared: act quickly, obtain agreements in writing, and request that the property be taken off the market early.
Recent data shows that 59% of gazumped buyers end up losing money, with the average cost of a failed transaction reaching £2,400. From solicitor fees to surveys and mortgage expenses, the financial hit can be significant, especially when it happens late in the process. This is why many buyers now choose to purchase home buyer protection insurance, providing themselves with a financial safety net in case the sale falls through.
Should I Accept a Gazumping Offer?
If you're a seller considering a higher offer after accepting one, weigh the pros and cons carefully. While a higher price might be tempting, it could delay the sale or even cause it to fall through if the new buyer isn't as prepared. Moreover, gazumping can damage your reputation with agents and future buyers. Ethically, it's often viewed negatively. Before making a decision, assess the reliability of the new offer and consider the potential risks involved.
How to Avoid Being Gazumped
You can’t always stop gazumping but you can reduce the risk with these steps:
1. Get a mortgage agreement in principle
Having this ready shows you're serious and can move quickly, making you more attractive to sellers.
2. Ask the seller to take the property off the market
Once your offer is accepted, the chance of new offers coming in is lower. Some sellers will agree if you commit to quick progress.
3. Instruct a solicitor early
Line up your conveyancer before you even make an offer. The faster the legal side starts, the less time there is for another buyer to step in.
4. Arrange your survey fast
Delays with surveys are among the top reasons sales drag get yours booked as soon as possible.
5. Stay in close contact
Regularly chase your solicitor and mortgage broker to avoid unnecessary hold-ups.
6. Consider home buyer protection insurance
It won’t stop gazumping, but it can reimburse lost costs (like surveys and legal fees) if the deal falls through.
Expert advice from our property expert Paul Gibbens:
"We’ve seen buyers lose thousands simply because they assumed everything was secure after an offer was accepted. In reality, until contracts are exchanged, nothing’s guaranteed. That’s why we always advise acting fast and getting everything lined up with your solicitor, your mortgage, even your survey.
We’ve helped plenty of sellers choose serious buyers based on how quickly they were ready to move. Speed and preparation really are your best defence against being gazumped.""
Do Estate Agents Allow Gazumping?
Estate agents in the UK are legally required to pass on every offer they receive to the seller, even if the property is already under offer, which means gazumping is allowed in practice. While many agents discourage it due to the stress it causes buyers, some may still support it if a new offer is significantly higher, as it can boost their commission. Ultimately, it’s the seller’s decision, but agents are bound to present all bids.
Want to Skip the Stress and Avoid Gazumping?
Gazumping can cost you time, money, and no small amount of frustration, especially in a slow-moving chain. If you're looking for a guaranteed, hassle-free sale without the risk of being outbid at the last minute, we can help.
At Housebuyers4u, we buy homes directly for cash — no estate agents, no delays, and no risk of gazumping. Whether you’re selling or stuck in a chain, we’ll give you a free, no-obligation cash offer and handle the entire process start to finish.
Don’t get gazumped — sell with certainty.
Find out how much we can Offer for your House
