Find Properties:

Use my current location
AdvancedBasic search
Draw a search

Gazundering: A guide to what it means and how to avoid it!

Thu 10 Dec 2015

Carl Watts, Partner at Brown & Cockerill Estate Agents , Rugby explains what this term means and its potential impact on the selling process

Gazundering is a term for a modern phenomenon that refers to the action of a buyer who lowers their offer on a previously agreed sale price, just prior to the contract being signed. In some cases this isn’t through the buyer’s choice – they could be reacting to an event in the chain, or findings in the survey.

At a time of low buyer demand or when a sale simply has to complete – for example, if there is a long chain or time is of the essence – then a seller may be forced to accept the lower price or risk the collapse of the entire chain. Such behaviour can trigger a chain reaction because a seller who has been forced into a corner with a lower price may then look to reduce their offer on a potential acquisition.

Here Carl reveals what can be done to mitigate the effect of gazundering and all that it entails.

Set the exchange date for contracts – expedite the deal to try to overcome any doubt or change of mind by the buyer.

Push your buyer to have their survey completed quickly – sometimes lenders have large backlogs, so if a sale is chain critical, this may mean that they need to change the lender they were planning to use.

Be realistic – do not be overoptimistic about your sale price and be wary of a buyer whose story doesn’t stack-up. Don’t get caught out by the buyer who offers over the asking price to secure a sale, who may then start chipping down the price as the exchange date looms. In most instances a buyer will also be relying on a lender’s survey and they may down-value the property if they feel it is over-priced.

Be transparent – ensure that there are no shocks in the buyer’s surveybecause any large repairs can scare a buyer or provide them with the opportunity to significantly lower their offer. Ask your estate agent to take a look around your house to see if they spot any problems that a surveyor may pick up, and get them repaired before you put your house on the market.

Choose your estate agent carefully – a well trained and reputable estate agent will do all they can to ensure that the sale goes through and will be familiar with aggressive behaviour from buyers. They will be the experts that manage the process.

Prevent delays – hold ups between the solicitors of both parties can give the buyer wriggle room to change their offer. Ensure that you have promptly provided all the information that your solicitor needs and that it gets to your buyer ASAP!

Thankfully gazundering is rare, and in most instances buyers do not do it vindictively, but whatever the scenario it can be distressing and can often see deals collapse. Carl recommends that vendors always try and pre-empt the survey and either have work done prior to listing, or, if you’re selling a property at a reduced price because it requires work, be upfront about it. Favourites for surveyors to pick up on are things such as damp proofing, chimney pointing and wiring. Always try and get the survey done quickly so you can head-off anything that is raised.

To understand more terms around buying, selling and renting, visit the OnTheMarket.com jargon buster.

News Archive

October 2022

Top Qualities to Look for in an Estate Agency

July 2022

Will house prices keep rising, and is it a good time to move?

June 2022

Tips For Saving For Your First Home

May 2022

Top Tips For Selling Your Home

March 2022

5 Ways To Spruce Your Home For Spring

December 2021

Brown & Cockerill Named Best Agent In The West Midlands Region By Relocation Agent Network

October 2021

Maintaining you rental property this winter

Rents rise at fastest rate for 13 years

Why Autumn is a good time to make the move

A guide for first time tenants

September 2021

Why You Should Rent Through A Reputable Agent

Top tips on being ready to sell your property

August 2021

Lettings market records its strongest month

How has the property market been impacted after the stamp duty changes?

Gardening tips for landlords

July 2021

Common mistakes when selling your home and how to avoid them

Top tips on increasing the rental value of your property

Property price predictions for the rest of 2021

June 2021

Choosing the right lettings agents

A beginner's guide to selling a property

A guide on buy-to-let mortgages

Everything you need to know about the Stamp Duty changes

May 2021

Tips for renting out a property

How to maximise your house value in the current climate

Restaurants to Visit in Rugby, Warwickshire

Rental prices are on the rise

April 2021

Alfresco Dining in Rugby

Five top tips for getting your garden spring-ready ...

What The Government’s 95% Mortgage Scheme Means For Buyers

January 2021

“What should you spend time and money on when improving your property?”

November 2019

National Estate Agent Conference

April 2019

What is the difference between Outline and Full Planning Permission?

February 2019

Best Ways To Increase Your Rental Property's Energy Efficiency

January 2019

Shared Ownership - What is it?

October 2018

Taxes Payable by Landlords & Investors - A Guide

August 2018

We win GOLD for the 3rd year running.

May 2018

The Facts - Energy Performance Certificate (EPC)

February 2018

Relocation Experts Recognised at Brown & Cockerill Estate Agents

November 2017

Chancellor abolishes Stamp Duty for First-Time Buyers in England and Wales in his Budget

The Team Attends National Estate Agency Conference and Exhibition.

September 2017

Brown & Cockerill win Silver at National British Property Awards

It's Official - We are the Best in Rugby!

July 2017

The Pros and Cons of 'Online' Estate Agents

Top tips for reducing condensation

May 2017

The importance of your credit rating when applying for a mortgage

Thinking about selling but worried about the length of your lease?

April 2017

Tenant Referencing - what you need to consider

March 2017

How to Spot and Tackle Japanese Knotweed

February 2017

10 things to do before applying for a mortgage

HOUSING WHITE PAPER: The Key Points

January 2017

Woodworm Treatment - The ins and outs that you need to know

December 2016

Selling Your House? Don't Wait for the New Year!

August 2016

Brown & Cockerill Offer Clients a Relocation Agent Specialist

July 2016

Brown & Cockerill win GOLD for Best Estate Agent in RUGBY!

June 2016

Lettings: A Guide to Deposit Protection Schemes

Property Jargon Buster - a glossary of terms

May 2016

Thinking of Buying a Second Home? a guide to stamp duty changes.

April 2016

Rents Rising Across Most of the UK

March 2016

Keeping a Property Tenanted

Brown & Cockerill Help Home-Movers to Celebrate!

February 2016

FEBRUARY is here which means it is the month of LOVE

This Year We Are Celebrating Our 20th Anniversary !

January 2016

Help to Prevent Damp & Mould

Do your tenants have the Right to Rent?

Proposed New Stamp Duty Rules

December 2015

Buying or selling a property with asbestos?

Gazundering: A guide to what it means and how to avoid it!

November 2015

The Team Attends National Estate Agency Conference