What is gazundering? Gazundering is a term used to describe the practice of a buyer reducing the price they are willing to pay for a property at the last minute, just before the sale is due to be completed. This can be done for a variety of reasons, such as if the buyer discovers a problem with the property that they were not aware of before, or if the market value of the property has decreased since the original offer was made.
Gazundering is very frustrating for sellers!
Gazundering can be very frustrating for sellers, as it can disrupt the sale process and potentially cause the deal to fall through. In some cases, it may be used as a negotiating tactic by buyers who are trying to get a lower price for the property. It’s important to note that gazundering is generally considered unethical and can be very frustrating for sellers. As a result, it’s important for buyers to be aware of the potential for gazundering and to try to avoid this type of behavior.
Here is an example of gazundering:
- A buyer and a seller agree on a price for a property and enter into a legally binding agreement. The buyer pays a deposit and the sale is scheduled to be completed in two weeks.
- Just before the sale is due to be completed, the buyer discovers a problem with the property that they were not aware of before, such as a leak in the roof.
- The buyer decides to use this as an opportunity to try to reduce the price they are willing to pay for the property. They send a message to the seller saying that they are willing to go through with the sale, but only if the price is reduced by a certain amount.
- The seller is unwilling to accept the lower offer and decides to try to find another buyer. The original sale falls through as a result of the gazundering attempt.
Is Gazundering legal or ethical?
Gazundering is actually legal in England – nothing is concrete until you have exchanged contracts. However, although gazundering is not illegal in England, it is considered unethical and many people are against it. It is sometimes a very harsh bargaining tactic used by property developers particularly those who are in a chain and know that the vendor really needs or wants to move. Try to avoid it without valid reason (e.g. a survey).
You might also be interested to read about: What is Gazumping?