If you have heard of gazumping but you haven’t heard of gazundering, good news and hopefully it will never happen to you. However, with a number of reported incidents, it seems as though gazundering is back on the agenda within the UK property market.
Gazundering can cause havoc in the property market
Gazundering happens on the day of the exchange and it involves the buyer revising their offer, coming in with a much lower amount. Even though a price has already been agreed, there are some buyers who revise their offer at the last minute, hoping that homeowners will accept the bid out of desperation. There have been owners who have accepted this change to the arrangement, no doubt fearful of what will happen if the deal collapses. It is natural that a homeowner would be angry at this turn of events but if the offer is accepted, the buyer will no doubt feel justified in their actions.
Of course, if the seller has other plans lined up, perhaps buying property to move into, they may not be able to accept a significantly reduced offer. A reduced offer may leave the seller unable to conclude their next transactions, and they may decide that it is better to decline the offer. This may leave the buyer revising their offer but there will be times a property deal collapses and it is entirely the fault of the buyer who was looking to save money.
Gazundering was more common in the UK back in 2008
The last time gazundering was a feature of the UK property market was a decade ago in the last financial meltdown. Clearly in challenging times, some people see an opportunity to get a better deal for themselves, even though it may place a property deal at risk. Jeremy Lead is a former Chair of RICS and he released a statement about gazundering, 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 an experienced estate agent, we will do everything we can to protect you from gazundering and if this occurs, we will do what we can to resolve the matter quickly. Any Bournemouth vendor looking for the best standard of support when selling their home will find that Austin Property Services is the firm to trust.