QLD:Gazumping - understanding the process

Discussion in 'The Buying & Selling Process' started by RENI99, 24th Jan, 2020.

Join Australia's most dynamic and respected property investment community
Tags:
Page 2 of 2
  1. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    14,020
    Location:
    Brisbane
    Competitive doesn't come into it. Once the contract is signed by purchaser and vendor, it is binding.

    You as vendor cannot decide to take a higher offer. You've made a deal at the price you were happy to sign at.

    Plenty of people will say to the agent "I would have paid $20k more" but mostly that is rubbish. And if they were serious, they'd put in a back up contract and hope the first one crashes.
     
    wylie, 31st Jan, 2020
    #21
    Marg4000 likes this.
  2. DueDiligence

    DueDiligence Well-Known Member

    Joined:
    27th Jan, 2020
    Posts:
    439
    Location:
    Sydney, Australia

    Agree, the vendor and buyer cant break it, but the agent could still present them contracts they could use if they fail to reach settlement with the original buyer.

    We just went through the process, 5 days of it. It appears being upfront as a buyer is a disadvantage, and the way the game is best played as a buyer is just to get the contract signed and then hammer the vendor with as many variations as possible - extensions on time , price discounts etc. Attempting to offer conservative settlement and a fair price upfront just means you lose out as the vendor can assess it before they're locked in and reject - only to have the agreed buyer (who at signing hasn't haggled yet) be a pain in the ass through the contract phase anyway.

    Has anyone seen this play out?
     
    DueDiligence, 1st Feb, 2020
    #22
  3. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,421
    Location:
    Qld
    Every variation gives the vendor an “out”.
    Buyers who play games often miss out.
    You can “hammer” all you want, but the vendor can play that game too and simply refuse.
    We always tell buyers the property is being sold “as is”, any defect has been taken into account in the pricing, and no further negotiation will be considered unless evidence of unknown serious structural defect or termites. We have never had a buyer crash a contract.
     
    Marg4000, 1st Feb, 2020
    #23
    wylie likes this.
Page 2 of 2