Cash buyers and gazunder'ing

racing_blue

To gazunder is to lower the offer once the seller has accepted a price. The problem has to do with the fact that a deal has been made, and the other party will be incurring costs and planning their affairs. To gazunder is to kind of blackmail, using these things as a lever. As you point out, in business some people choose to behave dishonourably like this, but I think the majority don't. My policy in business and in life is to treat others as I would like them to treat me. Find it generally works out pretty well.

Dird

InquisitiveMind wrote: »

That's what I meant by "it's nothing personal, it's only business". I wouldn't think about if I was on the other end because I'm not.

Part of your soul must have died when you came into your inheritance.
"because I'm not". The next house, you most likely will be and then you'd be annoyed if you invested £1k+ on fees only to be told you were gazumped

Think of it from the business. EAs, not vendors. If an EA let me be gazumped I'd never buy/sell through them again and I'd tell all my friends/family what happened, potentially making them weary of that EA also. That's not good for business

eddddy

Dird wrote: »

Think of it from the business. EAs, not vendors. If an EA let me be gazumped I'd never buy/sell through them again and I'd tell all my friends/family what happened, potentially making them weary of that EA also. That's not good for business

EAs aren't in a position to 'let people be gazumped' or not.

If a property is under offer, and another higher offer is made - by law, the EA must pass that offer on to the vendor. The vendor then decides whether or not to accept it.

Typically, EAs don't like gazumping, because it means more work for the EA and delays them getting their fee.

If a gazumper offers £2k more, that typically represents an extra £30 for the EA. That £30 doesn't justify the extra work and delay.

moneyistooshorttomention

InquisitiveMind wrote: »

People don't become lovey friends after the transaction. It's only business.

Now wondering whether you will still be saying "Its nothing personal - its only business" when you are the one on the receiving end, eg when an employer sacks you because they've found someone who will work for lower money or a girlfriend chucks you because she has found someone to date that has more money than you (but you'd thought it was a "real" relationship).:cool:

Ronaldo_Mconaldo

So someone's agreed to sell their house to another person for £200k but then you come charging out of nowhere and say "wait, how about I buy it for £180k". They'll love that.

giddypenguin

I just don't see what the attraction would be to ditch a seller who was progressing the sale to start all over again at a lower price - unless my house had some issues and I was concerned about mortgage retentions...

As for 'it's only business ' this is true, but a house purchase is (for the majority of us) a very emotional purchase, it is stressful, with a large financial outlay - and you want to make someone's life a whole lot more stressful because you have some cash?

Why not just stick to houses for sale, not under offer?

jamei305

No, and you'll make yourself known to EAs as someone who doesn't really know what they are doing. So when you actually come to make an offer on a property you like before it's taken off the market, if someone else puts an offer in the EA will be dis-recommending you to the vendor.

Pixie5740

You aren't planning to outbid someone though. Your plan is to go in and offer less based on the fact that you're a cash buyer. Being a cash buyer doesn't give you as much clout as you'd imagine.

You might feel differently about gazumping and gazundering once you've paid out money for surveys and solicitors only to get shafted.

Why not just look at properties you would like to buy and that aren't under offer yet?

InquisitiveMind

Pixie5740 wrote: »

You aren't planning to outbid someone though. Your plan is to go in and offer less based on the fact that you're a cash buyer. Being a cash buyer doesn't give you as much clout as you'd imagine.

I understand. though if someone is desperate to sell, not having a chain, and being a cash buyer could be enough to persuaude a needy seller otherwise.

Pixie5740 wrote: »

You might feel differently about gazumping and gazundering once you've paid out money for surveys and solicitors only to get shafted.

Planned it into my budget.

Pixie5740 wrote: »

Why not just look at properties you would like to buy and that aren't under offer yet?

Really good question. If someone's put an offer on it chances are it's 'good to go'. I guess that answer will stir even more to belittle me.

Pixie5740

If someone has put in an offer of £X already then there's a good chance that the vendor has made an offer on the property they are buying based on a selling price of £X, not a lower amount.

If a vendor is desperate to sell then the property will be priced to sell although you do get the odd vendor living in Cloud Cuckoo Land.

If you think you are in a strong position to gazump because you're a cash buyer then go for it and let us know how you get on.