Selling Your Home? Be Aware of Gazundering
Posted on 24th July 2018 at 20:30
There are many problems and challenges associated with selling your home. It is important that you know what these challenges are. It is likely that you will have heard of gazumping, which is an issue that has affected many people looking to buy property, but have you heard of gazundering? If you haven’t, we are here to help you increase your awareness of this matter and hopefully help you avoid this situation.
Gazundering is the term in the industry for a scenario when on the day of the exchange, the buyer reduces their offer. You will usually find that this new offer is significantly lower than the previously agreed selling price.
Vendors are placed into challenging positions with gazundering
As you can imagine, this has the potential to place the vendor into an extremely difficult position. If you are in a chain where you are also buying property, this new low offer may impact on your ability to finance this next move. There is also the annoyance and anger that you are likely to feel over the situation. If a price has been agreed, the last thing you expect is for the terms to be changed at the last minute but clearly there are buyers who feel as though they can make a saving by acting in this manner.
Buying and selling property is said to be about compromising and negotiating but there are times when it is about holding your nerve and making the best decision for your needs. It is rare that gazundering is a personal attack on the property owner; merely it is an opportunity for the prospective buyer to save money when buying property. The buyer will hope that the seller, in their desperation to sell, will accept a reduced fee for the property at the last minute rather than letting the deal collapse.
You can see why buyers are keen to act in this manner
There will be many people who will call this action morally repugnant but equally, for the buyer, if you are fine with having the action on your conscience, the money you save can be put to fantastic use in your home or for enjoying yourself.
This isn’t the first time that gazundering has been an issue in the UK property market and Jeremy Lead, a former Chairman of RICS, spoke on the subject, saying; “The last time we saw a rise in gazundering was around 2008, when the market softened as a result of the financial crisis. Of course, it really depends on the prevailing conditions in your local area but we are seeing the classic ingredients that together, contribute towards an environment which can lend itself towards buyers becoming more opportunistic; slowing demand, surveyor down-valuations, longer transaction times and unrealistic seller expectations in terms of achievable sale price.”
As the seller, you may not think there is much you can do in this situation but it is worth enquiring if there is a genuine reason the buyer has acted in this manner. If issues have arisen in a survey or through search results, ask for evidence and then decide if there is a genuine reason why you should accept a lower offer.
Depending on your next move, you may not have any flexibility on price, so you may not have a decision to make. There is no denying that gazundering places the seller into a difficult position and this is where having support from experts can make a difference.
If you are looking to sell your home and want support from professionals, contact Strawberry Letting and Sales and we will do our best to support you at all times.
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