How to Avoid Being Gazumped When Buying a Property
- Tanya Spencer
- 5 hours ago
- 2 min read
Buying a property is an exciting step, but it can also be stressful. One of the biggest fears many homebuyers face is being gazumped. In simple terms, gazumping happens when you’ve made an offer on a property and it’s been accepted, but before contracts are exchanged, the seller accepts a higher offer from someone else. This leaves you disappointed, out of pocket for costs like inspections or legal fees, and back at square one. The good news? There are ways to reduce the risk of being gazumped. Here’s what you need to know.
What Is Gazumping?
Gazumping occurs when a seller verbally agrees to sell you a property but later chooses a different buyer often because they’ve received a better offer. Since contracts in Australia aren’t legally binding until they’re signed and exchanged, the seller is legally free to change their mind before that point.
Why Does Gazumping Happen?
There are a few common reasons sellers gazump buyers:
A higher offer comes in after yours is accepted.
Delays in the process, giving the seller time to consider other offers.
Emotional factors, such as a change of heart or preferring a buyer who can settle faster.
How to Protect Yourself From Gazumping
1. Act Quickly After Your Offer Is Accepted
Time is critical. Once your offer is accepted, move fast to get inspections done and your finance approved. The sooner you’re ready to sign the contract, the less opportunity there is for another buyer to swoop in.
2. Get the Contract Signed and Exchanged
Remember: a verbal agreement isn’t enough. A property deal only becomes legally binding once the contracts are signed and exchanged. Work with your conveyancer to make sure this happens as quickly as possible.
3. Ask for the Property to Be Taken Off the Market
When your offer is accepted, request that the seller takes the property off the market. While not all sellers will agree, it reduces the risk of other buyers making competing offers.
4. Consider a Cooling-Off Waiver (With Caution)
In some cases, buyers may waive their cooling-off period to show they’re serious and ready to proceed. This can make your offer more attractive to the seller. However, only do this after seeking professional advice, as it means you lose the right to back out without penalties.
5. Get Professional Support
Having an experienced conveyancer on your side can make a huge difference. They’ll guide you through the process, handle the paperwork quickly, and help protect your interests from start to finish. Gazumping can be frustrating, but with the right steps, you can greatly reduce the risk. Move quickly, get your paperwork in order, and work with a trusted conveyancer to secure your purchase.
At SL Conveyancing, we specialise in helping buyers navigate the property process smoothly and with confidence. If you’re ready to buy your dream home and want to avoid being gazumped, get in touch with our team today.
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