Information For Property Buyers

Gazumping and gazundering

Gazumping is still an unfortunate fact of life, especially in a sellers’ market. This happens when the seller accepts a higher offer after agreeing to sell the property to someone else. The original buyer stands to lose more than the property they had set their heart on. They may well have paid for surveys and might also have incurred solicitor’s costs, none of which will be refundable. If you pay the Asking Price you dramatically diminish the likelihood of the occurrence of gazumping.

An estate agent has a duty by law to inform the seller of all offers made on their property. Therefore a reputable agent will forward all offers to their client even if these are made after an offer has been accepted. It is very much the seller’s decision as to whether an offer is considered or not. An estate agent can legally give guidance but can never recommend. When an offer has been accepted a seller must give written permission to the agent to remove the property from their register. Some sellers prefer to keep their property on the market until exchange of contracts so that should the transaction fall through, there may have a back up buyer.

Gazundering occurs when, at the last minute, the buyer refuses to go ahead with the sale unless the price is reduced. Again, there is nothing the seller can do about this apart from negotiate on the price or lose the sale – and possibly the house they are in the process of purchasing, too.

In such situations any estate agent worth their salt will do their best to negotiate on the sellers behalf, or failing that, will attempt to find you a suitable new buyer with all possible haste. Fortunately, it is rare to come across gazundering but in a recessionary housing market it is more likely to occur as prices may be falling.