Buying a home is all about timing, preparation, and a little bit of market know-how. One term that often catches buyers off guard is gazumping – and while it sounds like something out of a game show, it’s part of the home buying process in some parts of the UK.
Understanding how gazumping works, and why it happens can help you make stronger offers, keep things moving, and avoid unexpected setbacks. Whether you’re buying your first home or your fifth, knowing what to watch for means you’re already one step ahead.
Related: What is a property reservation fee and is it refundable?
What is gazumping?
Gazumping is when a seller accepts a higher offer from another buyer after already agreeing to your offer. It usually happens before contracts are exchanged, as that’s the point at which agreements become legally binding in England and Wales.
It’s important to know that a verbal ‘yes’ isn’t the finish line. Until both parties have exchanged signed contracts, the seller is legally allowed to accept another offer, even if you’re already well into the conveyancing process.
While it’s frustrating, especially after investing time and money into surveys or solicitor fees, it’s not uncommon in a competitive market. That’s why preparation is key.
Related: How does exchange of contracts work in a chain?
Is gazumping legal?
Yes, gazumping is legal in England and Wales. The law doesn’t consider a property sale to be final until contracts have been formally exchanged, which means either side can change their mind beforehand.
However, it’s often viewed as poor form. For buyers, it can feel unfair, but understanding the legal framework helps you make decisions with clarity.
While in Scotland, gazumping is rare. That’s because once a written offer is accepted through a solicitor, it becomes legally binding early on. This structure gives buyers and sellers more certainty from the outset.
How to avoid gazumping
You can’t completely rule it out, but there are several smart steps you can take to reduce the chances of being gazumped:
Get mortgage pre-approval
Having a mortgage agreement in principle shows sellers you’re financially ready and serious. It can also help speed up your side of the process.
Move quickly through the conveyancing process
Once your offer is accepted, keep things progressing by responding to your solicitor promptly, booking your survey early, and staying in close contact with your agent.
Ask for the property to be taken off the market
It’s perfectly reasonable to request this once your offer is accepted. Some sellers are happy to agree, especially if they see you’re motivated and organised.
Consider a lockout agreement
This is a formal agreement that gives you exclusive rights to buy the property within a set time. It’s not always used, but it can give both parties extra peace of mind.
Look into home buyer protection insurance
This type of policy can help recover costs like surveyor and solicitor fees if the sale falls through. It doesn’t prevent gazumping, but it can soften the financial impact.
Related: What type of survey do I need?
What does sold STC mean?
You’ve probably seen it on property listings: Sold STC – what does it mean?
STC stands for “subject to contract”. It means the seller has accepted an offer, but the legal work hasn’t been completed yet. Until contracts are exchanged, either side can still withdraw or renegotiate.
This is the window where gazumping is most likely to happen, as the seller is not yet legally committed. If you’re making an offer on a property that’s already Sold STC, you can technically still submit a higher offer. Estate agents are legally obliged to pass it on, but the seller may or may not choose to proceed.
Why does gazumping happen?
Gazumping isn’t always about a higher price. Sometimes it’s about a smoother, quicker process. Sellers might switch to another buyer because:
- The new offer is higher
- The buyer is chain-free or paying cash
- There have been delays in the original sale
- The seller feels more confident about the second buyer’s ability to complete
This is why it pays to be proactive and well-prepared from the start. Showing you’re ready to move quickly can make all the difference.
Here’s your step-by-step guidance on what to do after your offer is accepted
Preparation makes all the difference
Property transactions can move quickly and occasionally unpredictably, but with the right approach, you can stay in control. Understanding what gazumping is, what sold STC really means, and how to avoid gazumping gives you the tools to navigate the market with confidence.
Whitegates offers friendly, expert support from first viewing to final step. Get in touch with your local Whitegates branch to take the first step towards your new home.
