What Does Gazumping And Gazundering Mean?

What does gazumping mean?

Gazumping is when a seller accepts a buyer's offer for their property however another buyer then puts in a higher offer than the first buyer's which the seller accepts, pushing the first buyer out of the picture.

What does gazundering mean?

What does gazundering mean?Gazundering is something the buyer can do, it is basically when the buyer waits until they are about to exchange the contracts for their new property and then they will lower their offer at the last minute. This is not the same as a buyer trying to negotiate a reduced offer due to any problems a survey may have thrown up. The buyer is gambling that the seller will be so far along the process of selling that they will be desperate enough to accept the lower offer rather than start the whole process again. It comes down to how much the seller needs the sale to go through.

Is gazumping and gazundering a good idea?

Gazumping can be tempting for a seller because it is usually the case that the new offer is higher. However if the new buyer isn't in as good a position as the original buyer, then the sales process can end up taking a lot longer than it otherwise would have done and any additional money could more or less be wiped out by the longer running costs of the property - mortgage payments etc. The seller will also have burned their bridges with the original buyer and it would be very unlikely the seller could go back to them later if the new offer fell through. Gazundering may also seem a good idea to a buyer as you are trying to get the property for a lower price, but once again there is a big risk because if the seller doesn't accept the lower offer then the whole chain could potentially collapse leaving the buyer with no new property, but with various solicitor and survey fees still to pay.

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Published on 26 April 2016

Source Trinity Sales Wakefield

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