Published: 18/01/2022 By Matthew GarganoAs a seller in today’s world, there are lots of terms to get to grips with. Gazundering and gazumping are just two of the main ones – both of which can cause big problems.
While gazumping mostly affects buyers, gazundering is something that hurts the seller the most and can be extremely frustrating.
If you’re wondering what gazundering is, whether it’s illegal and how you can avoid it when selling your home, here’s everything you need to know about the subject.
What is Gazundering?Gazundering is when a buyer lowers their offer at the last minute, usually just before you’re about to exchange contracts.
It’s completely different to gazumping, which is when a buyer is outbid at the final hour and a seller accepts. But it’s just as big of a problem. Gazundering can lead to delays in the chain, a loss of money and even a fall through in the sale.
Is Gazundering Illegal?If the next question you’re asking yourself is ‘Is gazundering even legal?’, unfortunately, yes it’s legal in the UK. The contract for the sale only becomes binding at the point of exchange, so gazundering is allowed by law. But whether it’s ethical is a different matter!
Why Does Gazundering Happen?There are many reasons why a buyer could offer a lower price at the last minute. It could be for genuine reasons, like the survey showing costly works or they’ve been gazundered themselves and can no longer afford your home.
But it could be for other, less favourable reasons too. Some people gazunder because of a miscalculation in finances, a change of heart, or simply to be sneaky to get a cheaper deal.
How to Avoid GazunderingWhile there’s always a risk of gazundering when selling your home, there are some things you can do to avoid it. Here are Willows Homes’ top tips on how to avoid gazundering.
1. Get a Realistic Valuation
One of the best ways to avoid gazundering is to make sure you get a realistic valuation in the first place. If you know about issues with your property, be upfront about them with your estate agent. And don’t worry about losing buyers – there’s a market for everything!
2. Consider Paying For Survey Issues
Sometimes, you don’t know about issues with your home until the survey. If problems are uncovered, consider whether you’d be prepared to fund the works fully or partially, by doing it yourself or accepting a lower offer. Either of these things could help keep the buyer on your side.
3. Choose a Good Estate Agent
Choosing a good estate agent is always important. But it could also be the best trick in the book to avoid being gazundered! While an estate agent can’t prevent gazundering entirely, they can help you find a good buyer. They’ll establish how serious a buyer is and won’t pressure anyone into a sale they’re not committed to.