If a buyer lowers the price they originally provided to the seller at the last minute, a case of gazundering has occurred. In many instances, this is something that happens immediately before contracts are exchanged when the vendor doesn’t really have any other choice but to proceed with the sale.
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Is gazundering justifiable?
If the vendor hasn’t been fully upfront with important information that is ultimately highlighted during a survey, buyers are within their right to reduce their offer.
In most instances, gazundering is an underhand tactic that shouldn’t be used. In fact, as this Times article illustrates it can backfire on buyers if their lender decides to run another round of affordability checks. Unfortunately, though, gazundering still can and does happen.
How should I deal with gazundering?
1. Always work with reputable estate agents
Experienced estate agents shouldn’t have any difficulty separating serious buyers from those who aren’t. They will use their skills and expertise to work hard for vendors to facilitate the smooth sale of the property.
2. Consult experienced legal professionals
There is a lot of paperwork associated with the sale of a property and it can be a stressful process. Experienced conveyancing solicitors have seen every trick in the book and will have developed ways to mitigate the impact of potential buyers who may act in bad faith. It is therefore worth doing your research, so when the time comes to look for reputable conveyancing solicitors Birmingham and other major cities are home to experienced teams, such as Sam Conveyancing.
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3. Have a plan
If things don’t progress quite as smoothly as you had hoped, it is vital to have an actionable backup plan in place. Consult with your agents and leverage their understanding of potential buyers, as this can help you to secure a speedy sale even if you determine that your original buyers aren’t as serious as you first thought.
4. Keep on top of the process
Reputable legal professionals and agents will take active steps to keep vendors up to speed with the progress of the transaction. As you are paying for a service, it is important to request as many updates as you need to have confidence in the process.
As gazundering isn’t illegal, unfortunately it is something that will continue to happen. So, taking tangible steps to protect yourself as a vendor is key to ensuring the seamless sale of your property.
