We've been Gazundered!

Gazundered

tawse57 wrote: »

That is actually spot on in some cases - allegedly.

Heard of that too but in this case it's a big no no!!

Gazundered

geoffky wrote: »

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..

Well I hope the same happens to you one day and see how you feel.

Gazundered

Premier wrote: »

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).

How refreshing!

Gazundered

Arthritic_Toe wrote: »

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).

Agree 100%. Anyone who does this has no scruples and care about no-one. They don't care what effect it has on the sellers or how it reverberates throughout the chain. If they don't get the sale, they then go and find new victims until they get what they want.

brightonman123

does the Scootish system still require a 10% deposit on acceptance of an offer.. lost if buyer pulls out? if seller pulls out, they have to pay prospective buyer TWICE!

Arthritic_Toe

geoffky wrote: »

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..

Its not about that. This is not a bull/bear argument or a HPC vs MSE argument. Its about shaking on a deal and honouring it. Morality-wise, its like making a bet and welching on it when you've lost. -or not buying your round at the pub.

xyellowx

op you have a few options here

1 dont sell your house if your not happy with the price

2 pass on the reduction on the property you are buying (explain why they may still be happy with the reduced offer so it wont cost you a penny)

3 except you havnt got what YOU think the house is, worth but still got what a BUYER thinks its worth

ILW

There is nothing to stop someone getting a further contract written up at the time of the "handshake" that neither party will change the price. This will only happen if both parties agree and someone is willing to pay for it.

tawse57

From today's Independent:

'Analysts expect the current trend of house price falls to continue. "If you look at house prices versus indicators like prices or income, we reckon that prices are still 20 to 25 per cent too high," said Ed Stansfield, chief property economist at Capital Economics.

"The real question is whether or not prices can come down without derailing the economic recovery. We've got a falling market and there is little that can be done in terms of reducing interest rates to help encourage activity. And all this is before the impact of the planned fiscal tightening is seen."'


http://www.independent.co.uk/money/mortgages/house-prices-slide-as-banks-reject-firsttime-buyers-2078551.html

So be very careful as the price that you are currently gazundered by might, just might, look not too bad in X months if the market now falls apart over the Winter months.

Arthritic_Toe

tawse57 wrote: »

From today's Independent:

'Analysts expect the current trend of house price falls to continue. "If you look at house prices versus indicators like prices or income, we reckon that prices are still 20 to 25 per cent too high," said Ed Stansfield, chief property economist at Capital Economics.

"The real question is whether or not prices can come down without derailing the economic recovery. We've got a falling market and there is little that can be done in terms of reducing interest rates to help encourage activity. And all this is before the impact of the planned fiscal tightening is seen."'

http://www.independent.co.uk/money/mortgages/house-prices-slide-as-banks-reject-firsttime-buyers-2078551.html

So be very careful as the price that you are currently gazundered by might, just might, look not too bad in X months if the market now falls apart over the Winter months.

Irrelevant. All this should be taken into consideration when you decide whether to buy or not to buy and about what to offer. But once the offer is made, a deal's a deal. Anyone who breaks this trust is a snake in the grass and not worth dealing with any further.