Gazundering is a similar practice, but the opposite of gazumping. Where gazumping is a seller ditching a sale in favour of a higher offer, gazundering is when an unscrupulous buyer lowers their offer just before exchange of contracts, pressuring the seller into agreeing a reduced price for their property.
Gazundering is, thank goodness, relatively rare, but as with gazumping, it isn’t illegal - it’s another one of the issues to be addressed by the government’s reforms on the eccentricities of the English property transfer system that nothing is binding on either party until exchange.
Morally however, it is a clear abuse of the system – a much worse one, in my view, than gazumping. Gazundering implies a strong element of premeditation. In delaying to the last minute before revising their offer downwards, gazunderers are counting on the seller being too heavily committed to pull out. I’m sure I can speak for all other reputable estate agents in saying that we regard this as utterly reprehensible.
What if anything can be done about it? Well, although nothing can insulate you from the danger altogether, you can at least minimise the risk by using a respected and honourable estate agent, who will thoroughly vet prospective buyers to establish their true financial position and level of commitment.
Sellers can also make sure they use a good conveyancer, be prepared with the required documentation and answer queries in a timely manner to speed the process along. However, even this won’t stop it happening if the buyer is of a mind to do so. Luckily, it is a rare occurrence so we can only hope it doesn’t ever happen to us or our clients. Unfortunately, given the situation, the seller’s options are to either stand their ground - say no and risk the sale falling through at such a late stage (the buyer will also have incurred costs so it also wouldn’t be in their best interests for the sale to fall through), accept that they’ve been ‘had’ and go with it, or try to negotiate.
If you’d like to discuss this in more detail, give us a call on 01392 204800 – we’d be happy to help.
