An overwhelming desire for a change of lifestyle and new working from home ways - combined with the last few months of the stamp duty holiday - have created a red hot home moving market. While reports that purchasers have resorted to gazumping – outbidding a buyer just before exchange – have been of concern, there is also a surprising amount of activity at the other end of the spectrum.
Gazundering – when a buyer reduces their offer before exchange – is rearing its head again, despite a good supply of purchasers. Buyers in today’s market are aware that some sellers need to sell property fast and they are using this to their advantage. In fact, they are leveraging the fear of possible delays at conveyancing and mortgage stages - and the final and fast-approaching 31st September 2021 stamp duty holiday deadline – to gazunder via stealth.
Gazundering immediately before exchange can force the hand of the seller. It’s understandable that vendors will desperately want to keep a buyer on board if they need a quick property sale, as the prospect of starting again from scratch – going through marketing, viewings, offers and surveys – is probably incompatible with their plans. As a result, they may accept a reduced sum in fear of their buyer walking away.
Gazundering, while unpleasant, is not illegal but there are some steps sellers can take to avoid the likelihood of a last-minute offer reduction occurring – or even stop it happening altogether.
If you think a survey will come back highlighting structural faults or issues such as rising damp, get these matters rectified before you put the property on the market. This will give buyers fewer reasons to negotiate the price down.
Purchasers will be doing their own research into property prices using openly-available online data and Land Registry figures. If there’s any hint that your home is over-valued, they could use this point to reduce their offer – especially if the market starts failing between offer and exchange.
A gazundee will often turn to gazundering - a turn of events that happens if a buyer below you is forced to accept a lower offer on their own property, which may leave them with a mortgage borrowing shortfall. To proceed, they may have no other option than to offer a lower price for your property. Selling to a cash buyer, first-time buyer or at auction will eliminate a chain below.
Haggling, negotiation and gazundering are not part of the process when you sell to Open Property Group. As a professional cash buyer, our offer is guaranteed – we won’t drop the price at the last minute, as this gives you certainty and confidence. We also buy any property type in any condition, which is ideal for those who suspect a survey would detect value-reducing flaws. Open Property Group can provide you with a no-quibble cash offer today – start the process immediately here.
Our sister company, Open Online, runs regular online property auctions where the price agreed on the day is the price that is paid. The beauty of selling at a property auction is that exchange happens when the hammer falls – there is no way for the buyer to gazunder at the last minute and the reserve prevents a property been sold too cheaply.
If you are gazundered and don’t want to sell your property for a reduced price, don’t panic. We have plenty of advice for those whose property sale has fallen through in this guide. Need more advice about selling your property quickly and for a guaranteed cash sum? Contact Open Property Group today.
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