Agent Login. Compare agents Agents by city. First Time Sellers. Help for first time sellers. Table of contents 1. What is gazundering? Is gazundering legal? Is gazundering fair and ethical? Why do buyers gazunder sellers? As a seller, how can I avoid gazundering happening to me? As a buyer, how can I gazunder successfully? Is it ever OK to gazunder? Pick a good estate agent Find an agent who is adept at navigating the selling process. However, doing so could trigger a second round of affordability checks by the mortgage lender — which would be especially damaging if a borrower no longer has a predictable stream of income, either because they have been furloughed, or they are self-employed,.
Subscription Notification. We have noticed that there is an issue with your subscription billing details. Please update your billing details here. Your Money. Personal Finance. Your Practice. Popular Courses. Alternative Investments Real Estate Investing. What Is Gazunder? Key Takeaways Gazunder is a colloquial term used in the United Kingdom when a real estate buyer lowers their offer despite already having agreed to a higher price. A gazunder is not illegal, but many people consider it unethical.
In a related practice called gazumping, a seller coming from a strong position raises the sale price of a property above a previously agreed-upon price when the transaction is already underway. Gazunderers should use agents or solicitors who are paid only when a deal is completed, and should also not disclose that they may attempt to gazunder to any party.
Related Terms How a Short Sale in Real Estate Works In real estate, a short sale is when a homeowner in financial distress sells their property for less than the amount due on the mortgage. What Is a Listing Agreement? A listing agreement is a contract between a property owner and a real estate broker authorizing the broker to represent the seller and find a buyer. Bait and Switch Sales Tactic Bait and switch is an unethical practice in sales whereby the actual product for sale differs substantially from its advertised quality or other attributes.
If they refuse, it gives you stronger ground for which you can make your attempt to gazunder. If you need to gazunder due to financial issues such as being unable to get a mortgage for the agreed amount, the first step should be to tell the seller your position.
Still, only by explaining your issues to the seller do you have a chance of being successful in gazundering. Wanting to gazunder simply because house prices in the area have fallen since you made your offer is a little more tricky. However, if the market has crashed to the point where your mortgage lender is unwilling to value the property at the agreed price, you have a better chance of being successful.
It seems unfair that, as a seller, you may have incurred costs in preparing for the move only to have the buyer lower their offer at the last minute.
Until the contracts are signed towards the end of the conveyancing process , neither party has any legal commitment to proceed with the transaction. Sometimes there are genuine reasons as to why a buyer needs to lower their offer. In such cases, you may be able to make allowances depending on your financial position and desire to sell.
Whether you accept a lower offer may also depend on how quickly you feel you could find a replacement buyer. If you feel the buyer is simply trying it on, or the lower offer makes it impossible for you to continue the transaction from a financial point of view, refusing point-blank may be your only option.
Sometimes this will mean the buyer backtracks and agrees to proceed at the originally agreed price. This can often be effective when the gazundering is happening because of an unfavourable survey.
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