We've been Gazundered!

lellow_lorry

As with the whole process you rely on an element of integrity and decency before exchange...unfortunately not everyone operates this way....in a falling market gazundering rears its ugly head, the worst kind simply because a person feels they have the vendor in a corner. In a rising market gazumping either by a higher offer or in my case some years ago on day of exchange the vendor wanted 5k more.
The options are to walk away or pay up....not nice either way and leaves a bitter taste. Thankfully not everyone is like that and can at least hold their head high.

iB1

tawse57 wrote: »

In the past 2 years I have followed a few houses in my area, several in fact, where the EA or the seller would not countenance anything below the askin price only for myself to learn, via the land registry later on, that the houses not only sold below asking price but often below my offer.

It could well be the EA fudging things a bit to sell to themselves/a friend for a nice cheap price.

Arthritic_Toe

Both gazumping and guzundering are just morally wrong. To my mind, its very simple. If someone lowered their agreed offer at the last minute, I would have nothing more to do with them. If they do this, its a red flag that they have no principles and would be highly likely to mess you about further. (Assuming there is no legitimate reason for lowering the offer, e.g. if the survey turns up something unexpected, then it is legitimate to lower the offer).

neverdespairgirl

JoeyG wrote: »

I think there should be the option for the prospective buyer to pay a deposit of an agreed amount which should legally protect them from being gazumped, but at the same time they lose the deposit if they pull out or negotiate a lower price...

that's exactly what happens - at the moment of exchange.

Premier_2

Gazundered wrote: »

This is happening a lot more and more and should be made illegal!

Someone makes an offer on your house which you accept. When the chain is complete and you want to exchange contracts your buyer suddenly demands a reduction in the price or he pulls out! He will not negotiate with you!

If you are keen on having the house of your dreams and don't want the chain to break down, you have no option but to agree.

Anyone who does this has no morals and does not care one iota about you or anyone else. If you are brave enough to pull out and say no, he will move on to his next victim and will carry on until he gets his way! They don't seem to care that they've spent hundreds on a survey and wait until the last moment to get you!

Watch out - it's becoming quite popular with first time buyers!

Welcome to the English system of buying and selling property. But don't worry about it too much.

Whilst neither gazumping or gazundering are illegal, most find the practice unpleasant.

Remember it's your property at present. You've got one, the first time buyer doesn't but obviously wants one. He is unlikely to ever get one if he continues with such an unhonourable approach.

What are your options?
1. Well you could accept the reduced offer (not recommended if it would then be lower than you would get from another buyer)
2. You could try explaining the situation to your seller and try passing the reduction up the chain (unlikely they will accept).
3. Tell the gazunderer to foxtrot oscar! ... The favoured solution in most cases

The gazunderer will almost certainly run out of money before they win in their attempts to secure a below market price property.
(as you already mention, they have probably already paid a small fortune in legal fees, search fees, finance fees, etc)
That's if anyone else will even contemplate them as a buyer again. Remember, as the seller you can chose who to allow to buy your property. With a bit of experience, and perhaps a bit of help from your agent, you'll soon learn to better identify those people really interested in buying your particular property and likely to honour any pre-binding agreement (assuming there is no good reason uncovered to reduce the offer following their own investigations), and those wanting to con you.

Once a prospective buyer gazunder's once, the local estate agent (who always seem to know other local estate agents very well indeed) should be in a position to warn you against any such buyer, hindering them attempting to repeat the exercise with you or another seller, if they still can afford to do so. Remember, the agent should be acting on your behalf; i.e. the seller's, and it is of no benefit to an EA to consider offers from a buyer who may later pull out on the basis they will not honour the purchase price they originally agreed to (without good reason).

geoffky

I applaud the guy who done it...gazumping was running riot in the boom years and now for a payback...it is moneysaving on here so gazundering should be welcome..

tawse57

iB1 wrote: »

It could well be the EA fudging things a bit to sell to themselves/a friend for a nice cheap price.

That is actually spot on in some cases - allegedly.

Tyler_Du

I remember reading (on another forum) of somebody who was selling their house, when this couple viewed it he remembered the woman saying to her husband that she loved the property and just had to have it. When the husband tried to gazunder the seller, he refused to play ball, in fact he increased the selling price by a few thousand. The buyers paid the higher price for the property.

Gazundered

lee636 wrote: »

So what happens if the survey throws up a massive problem? The buyer looses their deposit if they try and get a reduced price.

The buyer has the option to pull out or negotiate with the seller if something does come up in the survey and agree a new price then. Not wait until it's time to exchange contracts when everyone in the chain is waiting go.

Gazundered

Tyler_Durden_UK wrote: »

I remember reading (on another forum) of somebody who was selling their house, when this couple viewed it he remembered the woman saying to her husband that she loved the property and just had to have it. When the husband tried to gazunder the seller, he refused to play ball, in fact he increased the selling price by a few thousand. The buyers paid the higher price for the property.

Heard someone else had also done this - way to go! Beat them at their own game if they want the house that much!!