Gazundering -

budget_counsellor_shaz

We had this happen to us last year. We were in the process of buying, our offer was excepted and we started the process of buying.

However the estate agent came back to us after about 3 or 4 weeks wanting another £5000 as they had had another offer. We were very disappointed at the time especially as the seller had agreed to take the house off the market when we had agreed the price. We let the house go as we were not prepared to get involved in a house buying war:eek:

Now we are pleased especially with the housing prices appearing to be coming down in price:rotfl:

There is a house out there for us...........and we will buy another one one day:rolleyes:

subjecttocontract

Gazundering is much more likely to happen now that many legal firms offer a 'no sale, no fee' deal.

I'm currently buying a property on a 'no sale no fee' agreement with my solicitor. I'm paying cash, not had a survey ( I'm in the building game and know what I'm doing) not had any searches ( I already own a number of properties in the immediate vicinity) and am about to exchange contracts.......completion could be 7 days away.

I've now dropped the offer on a take it or leave it basis. If they refuse I can walk away with virtually no cost to myself.

Thats life I'm afraid.....

pickledtink

Gonzo wrote: »

That's probably all true.

However. Being a human being, when I've accepted an offer, I then cost my resultant offer on the house I want. I start looking at washing machines. I make plans based on the figures I have to hand. If it's a long drawn-out process over many months in a falling market then maybe, but I'm even uneasy about that.

We bought this house in a rising market (just as it was taking off) but for some reason, despite there being no chain, it took months. The seller was complaining and threatened to pull out (I believe I have the EA to thank for keeping it on track, but it certainly wasn't our fault!) and I think it was worth a couple of grand more by the time we moved in, but a sudden change in price would have broken our plans as we had no more money!

If the buyers or sellers in our current (short) chain change their prices then we'll be:
a - gutted
b - renting instead

We don't have the flexibility to change now we've agreed a price, and I bet we're not alone in that. Human nature is to buy as good as you can (hopefully comfortably) afford, not choose a markedly less suitable house in order to cover contingencies.

Free market economies - yay!

Human beings involved - boo!

Frankly it was naive to imagine there would be no possibility of a price reduction after initial offer.
when I sold I automatically calculated I'd end up with 1.5 - 2 % less than the initial offer and went house hunting with that approximate expectation. There is nearly ALWAYS post offer wrangling over things which bring it down a bit.

Thomas99

Mr_Stew wrote: »

No, I treat people how I expect to be treated in return.

Good for you, but it's a jungle out there, "My word is my bond" is an outdated concept in the property market.

Gonzo

pickledtink wrote: »

Frankly it was naive to imagine there would be no possibility of a price reduction after initial offer.
when I sold I automatically calculated I'd end up with 1.5 - 2 % less than the initial offer and went house hunting with that approximate expectation. There is nearly ALWAYS post offer wrangling over things which bring it down a bit.

You're probably right. This is the first house I've sold. However, it's a very short chain and a modern house. I can't see a lot of issues and we're sailing towards a quick exchange. Here's hoping eh?

Nenen

sarkin wrote: »

Capitalist society both gazumping and guzundering are fair. No prizes for second place

At the risk of sounding pompous... I'd far rather get second place for capitalist 'success' (i.e. material wealth) and have some dignity and morals! Of course... if one only judges 'success' by the size of the house you own then I hope you enjoy behaving dishonourably to achieve the house you want at the expense (monetary and emotional) of other people! My attitude is probably why I've got little money but a lot of true friends (i.e. not ones who only associate with me because of my apparent wealth) and a wonderful, loving family!

Nenen

subjecttocontract wrote: »

Gazundering is much more likely to happen now that many legal firms offer a 'no sale, no fee' deal.

I'm currently buying a property on a 'no sale no fee' agreement with my solicitor. I'm paying cash, not had a survey ( I'm in the building game and know what I'm doing) not had any searches ( I already own a number of properties in the immediate vicinity) and am about to exchange contracts.......completion could be 7 days away.

I've now dropped the offer on a take it or leave it basis. If they refuse I can walk away with virtually no cost to myself.

Thats life I'm afraid.....

What a lovely 'man' you sound! How do you sleep at night? I just hope that one day you reap what you've sown and get all the stress and angst you've caused others back upon yourself tenfold.

Note to self: if I ever have to sell another house then don't even let someone in this position view let alone believe a word they say!

Jennifer_Jane

Both are wrong - and needless! Just follow the systems in the rest of the world - for instance in South Africa, the Estate Agent issues a legally-binding Offer for both parties to sign. At some stage, buyers put down their deposits, which they would lose if they back out unless they cannot meet the suspensive conditions. Offers are legally binding subject to whatever suspensive conditions being met (mortgage approval; survey; searches) then people move in as and when they want to - completion (ie legal work) can happen even after people have moved in (they pay 'occupational rent').

Other countries also don't seem to have the stress and opportunities for immoral dealings such as gazumping and gazundering. I have only bought houses in South Africa and the UK, however.

So easy! In essence, you put an offer on a house, offer is agreed, you buy the house! No business of everyone moving on the same day with several pieces of the chain having to wait for the first people to move.

Jen
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