As a seller in today’s world, there are lots of terms to get to grips with. Whether you are working with an Estate Agent in Leamington Spa or elsewhere, gazundering and gazumping are just two of the main ones – both of which can cause big problems.
While gazumping mostly affects buyers, gazundering is something that hurts the seller the most and can be extremely frustrating which we discussed in a previous article here https://www.ettajames.co.uk/what-is-gazumping/.
If you’re wondering what gazundering is, whether it’s illegal and how you can avoid it when selling your home, here’s everything you need to know about the subject.
What is Gazundering?
Gazundering is when a buyer lowers their offer at the last minute, usually just before you’re about to exchange contracts in your Leamington Spa property sale.
It’s completely different to gazumping, which is when a buyer is outbid at the final hour and a seller accepts. But it’s just as big of a problem. Gazundering can lead to delays in the chain, a loss of money and even a fall through in the sale.
Is Gazundering Illegal?
If the next question you’re asking yourself is ‘ Is gazundering even legal? ’, unfortunately, yes it’s legal in the UK. The contract for the sale only becomes binding at the point of exchange, so gazundering is allowed by law. But whether it’s ethical is a different matter!
Why Does Gazundering Happen?
There are many reasons why a buyer could offer a lower price at the last minute. It could be for genuine reasons, like the survey showing costly works or they’ve been gazundered themselves and can no longer afford your home.
But it could be for other, less favourable reasons too. Some people gazunder because of a miscalculation in finances, a change of heart, or simply to be sneaky to get a cheaper deal. Using a competent Estate Agent in Leamington Spa can help mitigate these issues.
How to Avoid Gazundering
Gazundering is on the rise with the UK – https://www.estateagenttoday.co.uk/breaking-news/2024/07/gazundering-on-the-rise-in-buyers-market-warning/
While there’s always a risk of gazundering when selling your property, there are some things you can do to avoid it. Here are Etta James’s top tips on how to avoid gazundering.
1. Get a Realistic Valuation
One of the best ways to avoid gazundering is to make sure you get a realistic valuation in the first place. If you know about issues with your property, be upfront about them with your estate agent. And don’t worry about losing buyers – there’s a market for everything!
2. Consider Paying For Survey Issues
Sometimes, you don’t know about issues with your home until the survey. If problems are uncovered, consider whether you’d be prepared to fund the works fully or partially, by doing it yourself or accepting a lower offer. Either of these things could help keep the buyer on your side.
3. Choose a Good Estate Agent
Choosing a good estate agent in Leamington Spa is always important. But it could also be the best trick in the book to avoid being gazundered! While an estate agent can’t prevent gazundering entirely, they can help you find a good buyer. They’ll establish how serious a buyer is and won’t pressure anyone into a sale they’re not committed to.
Are You Selling Your Home in Leamington Spa?
If you’re selling your Leamington Spa property, make sure you’ve got an expert estate agent on your side. Here at Etta James, our friendly team of agents are here to make the sale of your home go smoothly.
Give us a call on 01926 898080 or send us an email at [email protected] for a chat with one of the team. You might find our previous post https://www.ettajames.co.uk/how-to-choose-an-estate-agent-in-leamington-spa/ useful also.
Frequently Asked Questions About The Property Market
Can gazundering happen after contracts are exchanged?
No. Gazundering is when a buyer lowers their offer last minute, before contracts are exchanged with the buyer’s solicitor.
Are there benefits to selling to a chain-free buyer?
Yes! Chain-free buyers can complete the sale faster, reducing the risk of the deal falling through due to complications in their chain. This can save you time and money.
How can estate agents in Leamington Spa help me avoid gazundering?
Estate agents can help find genuine buyers who are likely to offer a fair price. They can also guide you through negotiations and handle gazundering attempts professionally, potentially finding alternative interested parties.
Should I accept a low offer to avoid gazundering?
Not necessarily. Consider potential delays and costs if the sale falls through. Consulting your estate agent can help you decide if it’s best to accept a lower offer or seek new buyers.
For more questions sellers ask please have a read of https://www.ettajames.co.uk/10-most-frequently-asked-questions-by-home-sellers-in-leamington-spa/.
