Around the Block: 12/20/24

12/20/2024

Relevant Commentary, all information Philly (real estate and otherwise), Open Houses, Listings, Happenings, and More — by Jeff "City" Block

Grateful for no Gazumping

Courtesy of The Sun

Hi Readers,

I have written several ATBs discussing how much I have to be grateful for. You know, my health, my family and friends, the food on our table, the shelter over our heads, a job I love, living in such a great city, and All That Jazz. I am truly grateful and blessed.

Well, I recently learned about something else I have to be grateful for, and I thought that leading into Christmas, Hannukah, and the New Year, was the perfect time to discuss it. I am grateful that I am not an estate agent in England. And if you are a buyer or seller, you should be grateful you are not across the pond as well.

Lest you get gazumped or gazundered.

What is gazumping? What is gazundering?

Ok, check this out. In the United States (and pretty much everywhere else), when you decide to buy or sell a home, and you reach an agreement with another party, you sign a written and binding contract. You put down a good-faith deposit. Not in England.

When the British home buyer and home seller reach a meeting of the minds, they agree verbally on the home sale, and then the binding written contract comes… wait for it (literally)… months later after the survey and other legal terms are complete. During this entire time, the sales agreement is nothing more than a “gentlemen’s agreement.” So, the buyer will need to pay for the survey, inspection, solicitor fees, and other expenses before they can obtain a binding written contract. During this entire time, the buyer is on pins and needles, hoping that the seller doesn’t change their mind and decide not to sell to them. Perhaps another buyer could come along and offer more money or better terms. And the seller decides to break that gentlemen’s agreement. They can simply advise the buyer they have decided not to sell to them and make a verbal agreement with the new buyer. In this case, my friend, the buyer has been GAZUMPED!!

In England, this is totally legal (though considered ethically questionable). And the seller does not have to reimburse the buyer for any costs. Perhaps this was the home of the buyer’s dreams. Well, tough noogies. When you are gazumped, there is nothing you can do… except go find a new home and hope you aren’t gazumped again.

What if you are gazumped and the home you are selling already has a buyer? You will have nowhere to live. What to do? Well…, it looks like you may have to gazump your buyer as well. Sometimes, a gazump will cause a gazumping chain.

Note that it is not simply that sellers in England are meaner and less ethical than buyers. Because the verbal non-binding contract has two sides. What if the parties reach their verbal agreement, and after a couple of months of the seller having their home off the market, the buyer decides they do not want to move forward? Maybe they found a home they like better. Maybe just cold feet. Or maybe a Machiavellian negotiating strategy where they simply say to the seller—lower your price by £50,000, or I am terminating our deal. Just like the seller, the buyer has the same legal right to terminate the deal, no matter how shady. And in that case, the seller has been GAZUNDERED!

Can you believe this? When it comes gazumping and gazundering, I sure am grateful for…

Courtesy of the National Museum of American History/Smithsonian

(For some musical information on the British surrender at Yorktown, click here).

Finally, let me add that I never heard of gazumping until one of Ezra’s friend’s moms told me about it. They just moved from England to the Philly area, and she relayed how nervous they were that they would get gazundered when they sold their home to move to Philly. I found this entire concept fascinating. And the terms themselves certainly add to the drama. Don't you agree?

Anyway, there will be no ATB over the holidays, so I wish everyone who celebrates a wonderful Christmas and Hannukah a Happy New Year.

Warm regards,

Jeff

Spotlight Property

Featured Listings

Rittenhouse Square

1515 Locust Street # 301

2 BD | 2.5 BA | 1855 SF | $695,000

Point Breeze - PENDING

2418 Manton Street

3 BD | 2.5 BA | 2200 SF | $495,000

Rittenhouse Square - NEW PRICE!

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4 BD | 2.5 BA | 2625 SF | $950,000

Roxborough

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3 BD | 2.5 BA | 2658 SF | $599,000

Center City West - NEW PRICE

1811 Chestnut Street #501

2 BD | 2.5 BA | 1337 SF | $525,000

Germantown

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Cobbs Creek

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7 BD | 4 BA | 3015 SF | $495,000

University City

5040 Larchwood Avenue

3 BD | 2.5 BA | 1700 SF | $525,000

Cobbs Creek - Price reduction

5759 Catharine Street

3 BD | 1.5 BA | 1122 SF | $220,000

Germantown - BRAND NEW LISTING

5720 Wissahickon Ave #C17

2 BD | 1 BA | $82,000

Know Someone Looking to Buy or Sell?

As always, please know that I’m humbled by and appreciative of your introductions and referrals. If you have a friend, colleague, or family member that is in need of Expert Real Estate Representation, please have them contact me.

Be assured, I will do my best to exceed their expectations! Thanks for taking the time to read this issue of Around the Block.

Some imagery in this e-newsletter was sourced via visitphilly.com and Canva.