The return of gazundering - C4 News video

brit1234

The return of Gazundering:exclamati


The spectre of gazundering comes back to haunt house sellers as UK property prices fall. Bridgid Nzekwu reports.

Every week we seem to have new evidence of house prices falling - and falling house prices mean a return of that old nineties bugbear, gazundering.

Gazundering happens when a housebuyer demands a last-minute reduction on the sale price days before exchanging contracts.

The buyer is forced to agree - or faces losing thousands in lawyers' fees and having to start another long buying process.

http://www.channel4.com/news/articles/business_money/the+return+of+gazundering/2143147
Video link above

Bogof_Babe

Well I won't be doing that. A deal's a deal. I wish more people would observe decency and consideration these days :rolleyes: . It seems the housing market is a sad indictment of human greed at its worst.

Alan_M_2

Bogof_Babe wrote: »

Well I won't be doing that. A deal's a deal. I wish more people would observe decency and consideration these days :rolleyes: . It seems the housing market is a sad indictment of human greed at its worst.

It's a business transaction, pure and simple, I will deal up until the last minute if I feel I can get money off, conversely I expect people to do the same with me.

Human greed? I'd suggest not bartering is naive.....I guess it all comes down to a point of view.

Bogof_Babe

Yes it is a business transaction, but it's not like buying a bundle of shares or a new motor is it? People's whole lives depend on where they live. Also it is unique in that one person's change of mind can have a knock-on effect on half a dozen others in the chain.

I'd rather be naive than selfish. Anyway, the time for bartering was while agreeing the purchase.

Alan_M_2

Selfish? Doing a deal isn't selfish......you're still in the process of agreeing the purchase until completion and exchange, things change, markets move, interest rates alter......buying a house is absolutely no different to buying a bundle of shares or a new motor.

What other people choose to emotionally attach to the inanimate object it their own problem and no one elses...

Campaign for a law change if you don't like it...otherwise play the game.

BiggaThanBen

brit1234 wrote: »

Gazundering happens when a housebuyer demands a last-minute reduction on the sale price days before exchanging contracts.

The buyer is forced to agree - or faces losing thousands in lawyers' fees and having to start another long buying process.

I think they've just copy-pasted it from "gazumping"

iolande

Surely gazundering is okay in some circumstances - for example if a buyer puts in an offer and the buyer takes an unnecessary long time in completing (i.e. 6 months or more) in which time the market may have significantly changed. I think it is wrong for one party to take such a long time - surely if a price is agreed then both parties should do their best to complete as soon as possible.

merlinthehappypig

iolande wrote: »

Surely gazundering is okay in some circumstances - for example if a buyer puts in an offer and the buyer takes an unnecessary long time in completing (i.e. 6 months or more) in which time the market may have significantly changed. I think it is wrong for one party to take such a long time - surely if a price is agreed then both parties should do their best to complete as soon as possible.

Normally I wouldn't ever consider gazundering either, but I'd agree that there are some times when it would be acceptable.

We've just pulled out of a purchase for the reason you describe.

The seller has lied to us from the start about being prepared to move quickly and rent if neccessary. We were 7 weeks into the process before we found out that she still hadn't found anywhere to buy, despite promises to the contrary.

She then decided that she wanted to spend 'one last summer at the house' - still wanted us to buy it though!

We just pulled out, but would have been fully justified in revising our offer given the market conditions and the lies.

pickles110564

iolande wrote: »

Surely gazundering is okay in some circumstances - for example if a buyer puts in an offer and the buyer takes an unnecessary long time in completing (i.e. 6 months or more) in which time the market may have significantly changed. I think it is wrong for one party to take such a long time - surely if a price is agreed then both parties should do their best to complete as soon as possible.

So if it was a rising market would you expect a seller to ask you for more money?

angelavdavis

merlinthehappypig wrote: »

We've just pulled out of a purchase for the reason you describe.

The seller has lied to us from the start about being prepared to move quickly and rent if neccessary. We were 7 weeks into the process before we found out that she still hadn't found anywhere to buy, despite promises to the contrary.

She then decided that she wanted to spend 'one last summer at the house' - still wanted us to buy it though!

We just pulled out, but would have been fully justified in revising our offer given the market conditions and the lies.

What an awful situation to be in - people are so selfish! I suspect our next door neighbour has lost her buyer because they haven't pulled their finger out and found something to buy. Now we are on the market - next door are livid!

iolande

pickles110564 wrote: »

So if it was a rising market would you expect a seller to ask you for more money?

If I had taken an unreasonably long time in completing the contracts, I wouldn't blame them. That would be my fault for taking too long to complete. The example above where the seller had been less than honest about her situation and then decided to stay one last summer in the house is a good example of when it might be justifiable. So, if I make an offer and give the owners the false idea that I was ready to move in soonish, and I wasn't, then that is just as dishonest (in my opinion). So whilst it's their asset, they should be able to realise the gains.

Short term I would say no way to gazundering or gazumping.