What is Gazundering and How to Avoid It? A Guide for Homebuyers and Sellers

If you’re buying or selling a home in the UK, you might come across the term “gazundering.” It sounds unusual, but it’s something that can cause real stress during a property sale. In this post, we’ll explain what gazundering means, why it happens, and how you can protect yourself from it.

What is Gazundering?

Gazundering happens when a buyer lowers their offer on a property just before the sale completes. It usually occurs after the seller has accepted an offer but before contracts are exchanged. The buyer uses this tactic to push the price down, often threatening to pull out if the seller refuses.

This can be frustrating and worrying for sellers who may feel trapped. Gazundering takes advantage of the time lag in the UK property buying process when agreements are not legally binding until contracts are exchanged.

Why Does Gazundering Happen?

Gazundering often happens when the property market is slow or when buyers feel they have more power. Buyers might use it to save money or because they’ve discovered issues during surveys or searches. Sellers might feel pressured to accept the lower offer because they want to avoid the sale falling through.

How to Avoid Gazundering

1. Exchange Contracts Quickly
The longer the gap between agreeing on a price and exchanging contracts, the more risk there is of gazundering. Aim to complete this step as soon as possible to make the deal legally binding.

2. Get a Strong Mortgage Agreement in Principle
Buyers should have a mortgage agreement in principle before making an offer. This shows they are serious and financially prepared, reducing the chance they’ll pull out or try to lower the price later.

3. Communicate Clearly and Early
Keep open lines of communication between buyers, sellers, and agents. Address any concerns or issues promptly to avoid surprises that can lead to gazundering.

4. Be Ready for Surveys and Inspections
If problems come up in surveys, consider negotiating fairly rather than accepting sudden large price cuts. This approach can help keep the sale on track.

5. Use a Good Solicitor or Conveyancer
Experienced legal professionals can help speed up the process and advise on protecting your interests. They can spot risks and help you avoid common pitfalls.

What to Do If You’re Gazundered

If a buyer tries to lower their offer last minute, stay calm. Assess the situation and consider your options. Sometimes it might be worth negotiating a compromise, especially if you want to avoid the sale collapsing. Other times, standing firm or walking away is the better choice.

Having professional advice can help you decide the best course of action.

Final Thoughts

Gazundering is an unpleasant but not uncommon part of UK property sales. By acting quickly, staying informed, and working with good professionals, you can reduce the risk and protect yourself from last-minute price drops. Whether you’re buying or selling, understanding gazundering helps you stay in control and make smarter decisions.

If you want more tips on navigating the property market or dealing with tricky situations, just ask!