25 Feb What is gazundering and how can you avoid it?
If you have never heard of gazundering, then you may be one of the lucky people who have so far avoided a tactic that can be frustrating and downright infuriating. Here we take a look at what it is and what practical steps you could take to avoid falling foul of it.
Gazundering Explained
Gazundering is where a property buyer who has already agreed on a price reduces the offer just prior to contracts being exchanged. This is more or less the opposite of gazumping, where a vendor takes a higher offer from someone new despite having already agreed to sell at a lower price.
Why does gazundering happen?
In most cases, a buyer tries to exploit sellers when they are in a vulnerable position. They believe that they may have a lower offer accepted when a seller has already put substantial time and energy investments into the sale. Other reasons for gazundering can be found on the Home Owners Alliance website.
Is gazundering legal?
Gazundering is not unlawful in the UK as all parties involved in a property sale are able to change their minds or request changes to agreement terms and price prior to contracts being exchanged.
Despite the legal standpoint, gazundering is considered to be unethical by many and can lead to financial strain for the seller due to them feeling obliged to accept a lower offer. Emotional stress, delays and deals falling through can also result.
How to avoid gazundering
There are some practical steps you can take to minimise the risk of gazundering, starting with ensuring that you have a robust property valuation from the outset. This makes buyers confident in the price you want and less likely to feel justified in lowering their offer.
Ensuring that the sale process is expedited as soon as possible can also give sellers less chance to question their offer or respond to market fluctuations. This means making sure that your solicitor is acting in your best interest and that you are responsive to queries and requests for documentation.
To ensure that you understand the processes and your obligations from the outset, and to prevent delays at a later date, it is always a good idea to access easy to understand conveyancing news and information such as that found on websites like https://www.samconveyancing.co.uk/news/conveyancing.
Building a good rapport and relationship with a potential buyer can also reduce the chance of gazundering. Maintaining regular communication can also help you spot the telltale signs of wavering commitment to the purchase early. Other options include a lock-in agreement, where a non-refundable deposit is paid.
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