How to Deal with Gazundering
(Last Updated: 07/12/2022)
07/12/2022
17
5 min read
In the conveyancing process, there are many factors which can influence a property's value. Naturally, buyers will try to negotiate their offers, so they can get the property of their dreams for a reasonable price.
Whereas negotiating is sometimes valid, other times they can lower their offer last minute, knowing you will accept it just so you don't have to start the selling process anew.
What is gazundering?
The process of selling a house can be very complicated, no matter what side you're on. Offers can be withdrawn or negotiated and it can take a while for you to find the perfect buyer (or the property of your dreams).
If you're trying to sell and finally feel like it's all getting close to an end, what happens if your buyer suddenly reduces their offer? This is called: gazundering. It is a tactic which buyers use, so that they can buy a property for less. Not wanting to deal with extra costs and time can make sellers feel forced to accept a lower offer.
How do you respond to Gazundering?
This is quite simple: you either accept the reduced offer or pull out of the transaction and look for another buyer. This can make the process of selling your home lengthier, but you've managed to find a buyer once and you can certainly do it again. You can sell your property for a higher and more accurate price.
Is gazumping and gazundering illegal?
Gazundering | Gazumping |
The buyer reduces their offer before exchanging contracts. | The seller accepts another offer last minute. |
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Both gazundering and gazumping are legal since neither party is legally bound to buy or sell until exchange of contracts takes place. In some cases, gazundering after surveys can happen, but then it is reasonable for a buyer to change their offer, as house surveys can reveal defects to the property.
How do I stop Gazundering?
This might make you feel discouraged about selling your property, but thankfully, there are ways you can protect yourself against it.
- 1
Be realistic about the price
Setting a realistic selling price on your property will help you avoid being gazundered. You should always be honest with potential buyers about any problems with the property, as not doing so will entitle them to renegotiate their offers.
If you're unsure of how much to ask for your property, you can always get a market valuation report. This will guide you on setting a price and you can always show the report to potential buyers when enquiries will inevitably be raised.
- 2
Set a date for exchange of contracts
Setting a time for exchange of contracts, and possibly speeding the process, will help keep all parties focused on the transaction.
If you reduce the time between offer and exchange, the chances of you being gazundered are lowered. During this process, it is essential you communicate with your buyer and answer any enquiries they raise on the property. Being transparent will prevent them from changing their minds or their offers.
- 3
Carefully choose your conveyancer
Carefully choosing your legal representatives will be extremely beneficial during the selling process. A solicitor or conveyancer with a lot of knowledge about the market will be able to recognize if your buyer's gazundering tactics are fair.
In addition to that, having an experienced party acting in your name will ensure that the selling process is dealt with swiftly. Our experienced panel of solicitors will make sure you're not being gazundered.
- 4
No Sale, No Fee
The reason why sellers feel forced to accept lower offers is that they don't want to start the process of finding a buyer anew. They fear it may take too long for them to sell their property and they don't want to pay for solicitor's fees if the deal falls through.
However, there are ways around this. Our no sale, no fee conveyancing policy protects sellers in case their sale doesn't get finalised. This ensures that if your buyer tries to use gazundering tactics on you and the deal falls through, you will not be liable to pay for your solicitor's fees.
- 5
Non Refundable Deposit
A solution to this problem is to ask for a non refundable deposit. This way, buyers are committed to moving forward with the transaction and they are less likely to try to lower their offer.
While this will still not legally bind them to complete the purchase, it will help you get a sense of who is serious about buying your property.
Fast conveyancing helps you fight against gazundering
Fast conveyancing will ensure that you sell your home quickly, before buyers even get the chance to gazunder you. Get your free, no obligation quote today. Our team will make sure that your sale is handled swiftly.
Fixed Fee | Rated Excellent on Trustpilot | No Sale No Fee | On all Mortgage Lender Panels
Frequently Asked Questions
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REDUCE
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Written by:
Laura Cristian
Laura has a talent for data analysis and fact-finding. She is an advertising graduate with a broad range of skills in the web marketing field within conveyancing sector. She works closely with our panel of solicitors and surveyors to understand our clients' needs and challenges and to write the most valuable content for you.
Reviewed by:
Andrew Boast
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
