26% gazundered in the last year. Jukes Estate Agents Harlow has revealed (via property reporter (https://www.propertyreporter.co.uk/))that a quarter of sellers have been subject to gazundering in the last 12 months.
What is gazundering?
Gazundering, is also known within the industry as chipping. It is when a buyer drops their offer having already agreed a sum with their seller. This often happens at the last minute and in an attempt to secure a discount. The practice is more prevalent in cooler market conditions and is the opposite of gazumping. This is when a buyer submits a higher offer at the last minute despite the seller having already accepted an offer from another buyer.
However, unlike gazumping, there can be a good reason for a buyer attempting to gazunder their seller. Firstly, they may have found issues within the survey that weren’t apparent when they submitted their original offer. Secondly, they may have had their mortgage issue revised. This has become commonplace in recent times as interest rates have climbed.
Finally, they may have also had the property downvalued by their mortgage surveyor. Or there may have been a change in personal circumstances. However, in many cases, they are simply trying their luck to get a better deal.
A quarter of home sellers being gazundered
A survey of home sellers to have sold in the last 12 months, commissioned by Open Property Group, found that a quarter (26%) had been gazundered.
For the majority (68%), this happened more than two weeks before they were due to exchange contracts, however, a third (32%) were gazundered within the two weeks leading up to this date.
78% of those who were gazundered decided to accept the lower offer.
Why?
When asked why, the three predominant reasons given were: Firstly, that they didn’t want to waste more time finding another buyer (35%). Secondly, they didn’t want to jeopardise their onward purchase (22%). Finally they didn’t want to go through the wider process of selling again (14%).
The main issue cited by gazundering buyers was issues found when conducting the survey (35%), however, 24% were simply chancing their arm, while a further 16% gave no explanation.
What Jukes Estate Agents Harlow say:
“What makes me sad is that so much gazundering is avoidable” says Co Owner Geoff Flewers. ” If more Estate Agents in Harlow and indeed throughout the UK sold the way we sell, the figures would improve dramatically.
Simply take a non refundable reservation fee from the buyer. This sorts out serious buyers from those planning a reduced offer.
If Estate Agents carried out proper due diligence, then these figures would improve even more.