Property expert David Leake of Housesetc explains what “gazundering” means and its potential impact on the selling process.
Gazundering is a relatively modern practice that refers to the action of a buyer who lowers their offer on a previously agreed sale price prior to the contract being signed.
In some cases this isn’t the buyer’s choice, but merely a reaction to a change in the chain, or findings in the survey.
At a time of low demand or when a sale simply has to complete, for example, a seller may be forced to accept the lower price or risk the collapse of the entire chain.
Set the exchange date for contracts – quicken the deal to try to overcome any doubt or change of mind by the buyer.
Ensure surveys are completed quickly – lenders often have large backlogs, and this may mean that they need to change the lender they were planning to use.
Choose your estate agent carefully – a 5-Star rated, reputable estate agent will do all they can to ensure that the sale goes through.
Prevent delays – hold ups between the solicitors of both parties can give the buyer reasons to change their offer. Ensure that you promptly provide all the information.
Thankfully gazundering is quite rare, and in most instances buyers do not do it vindictively.