Gazundering is becoming ‘more prevalent’ – warning

A quarter of sellers have been gazundered in the past 12 months, research has revealed.

Analysis by quick-buy firm Open Property Group, found a third have been gazundered – where a buyer drops their offer at the last minute to secure a discount – within two weeks of exchanging contracts.

A survey of home sellers who have sold in the past 12 months, found 78% of those who were gazundered decided to accept the lower offer. 

When asked why, the predominant reasons given were that they didn’t want to waste more time finding another buyer (35%), they didn’t want to jeopardise their onward purchase (22%) and they didn’t want to go through the wider process of selling again (14%). 

The main reason for gazundering cited buyers was issues found when conducting a survey (35%), however, 24% were simply chancing their arm and a further 16% gave no explanation. 

Jason Harris-Cohen, chief executive of Open Property Group, said: “Much like gazumping, gazundering is an unfortunate part of the property selling process that many sellers will be subject to at some point, although it’s certainly more prevalent in cooler market conditions, such as those we’ve seen develop over the last year. 

“It can be a very stressful occurrence for sellers and unfortunately, as there’s no legal requirement to proceed with a purchase until the exchange of contracts, there’s not a great deal you can do, leaving many sellers with little choice but to accept the lower offer. 

“The best course of action is to find a chain-free buyer if you can as they are more willing to move quickly and are less likely to be caught out by additional costs further down the line, or to be subject to other affordability issues. First-time buyers, in particular, are also less likely to potentially jeopardise their purchase as they are keen to get that first foot on the ladder.”

Harris-Cohen adds that it also pays to be realistic on price.

He said: “Today’s buyers are well informed about the market and they will have an idea if you have over priced your property, leaving you more vulnerable to gazundering later in their transaction timeline.

“Ultimately, you don’t have to accept being gazundered, but the protracted property selling process means that the majority of sellers would rather be out of pocket than return to square one having almost reached the finish line.”