'Gazundering' - what it is and how to avoid it?

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What is Gazundering?

For property buyers and sellers, gazundering and gazumping can be a frustrating reality. Gazundering occurs when a buyer makes a lower offer just before the completion of a sale, causing the property chain to collapse. This puts pressure on the seller to accept the lower offer to avoid starting the process again.

Is Gazundering Legal in the UK Property Market?

If you're buying property in England, Wales or Northern Ireland, then yes, gazundering is perfectly legal. Similar to gazumping, there is nothing in the property process that prevents this from happening. Since no official contract has been entered into up until the date of exchange, either party can take advantage of the situation. The longer the lead up to exchange goes on, the more at risk you are.

According to the Guardian “one in three sellers has been asked to accept less money after a deal has supposedly been struck and three-quarters of them agreed to the lower offer”. Please don’t let yourself become a part of this statistic.

How do you avoid it?

The only way to stop this happening is a seller and buyer make a legal agreement when an offer is agreed that both parties stick to their word, unless something serious crops up out of their control.

Imagine if you could get this legal agreement and have it recommended by the UK Government the the UK Law Society?

You can.... Cooper Adams include these (Reservation Agreements) with our property sales. Our Reservation Agreements legally lock in the buyer and seller to the deal. Either side cannot change the deal or walk away from the deal.

Our ultimate goal is to ensure the safety and security of both buyers and sellers from the very beginning of the transaction. By utilising secure Reservation Agreements and detailed Buyer Information Packs, we streamline the process, minimize the waiting period, and provide more upfront information to potential buyers. This approach effectively eliminates the risk of last-minute changes of heart, such as gazundering or withdrawing, and ensures a more seamless experience for all involved.

Let Cooper Adams show you why you’ll love selling your property with us and how we can get you a great result.

In short, use Cooper Adams as your estate agent with their Reservation Agreements.

Cooper Adams estate and letting agents have offices in Angmering, East Preston and Rustington, with coverage from Littlehampton to Worthing. For guidance on selling or letting your property, reach out to us here.