Did you know that many people looking to buy or sell have experienced 'Gazumping' and / or 'Gazundering'? Do you know the difference between the two, as large numbers of people frequently mix the two together? Knowing the difference between gazumping and gazundering would put you in the know, as we aim to explain the difference.
Gazumping is where a seller accepts a higher offer on their property, despite having already verbally agreed to another offer. This can be done as verbal agreemnets are not legally binding. A contract needs to be in writing before it can be enforced to avoid this from happening. Once written contracts have been exchanged between the buyer and seller, there is less chances of gazumping to take place.
On the other hand, gazundering is where a buyer waits until a sale is almost ready to complete before unexpectedly withdrawing their offer and decides to make a lower one. The thought behind doing this is since this can collapse an entire chain of property sales, the buyer is relying on the seller accepting the lower offer to avoid having to start from scratch. This is a game that sometimes the buyer plays to try and secure a cheaper deal than the one that was originally offered to the seller, known as the 'physiological game' to try and pressure the other party to sell at a lower price to benefit the buyer.
Both gazumping and gazundering are not illegal. It might not be considered to be fair, but at the moment the law has no rights in place to protect either seller or buyer in these circumstances. In short, gazumping is common in the seller's market when property prices are rising and gazundering happens more often when prices are in decline.
Did you know that 1 in 10 people during their last house hunt fell foul of the backhanded practices that can occur when buying or selling a property? Many UK homebuyers want to see the practice of gazumping made illegal. A survey conducted by HBB Solutions, found that 9% of people surveyed had experienced gazumping and 85% stated that they would like to make it illegal. 9 out of 10 people surveyed want more support from estate agents to help prevent gazumping from occurring.
At Property Hub Ltd, we aim to do as much as we can to try and prevent both gazumping and gazundering. We have put together some helpful tips to assist both buyers and sellers from falling into these traps.
Last year the Government policymakers met with the senior members of the UK's National Association of Estate Agents to discuss the possibility of simplifying the buying process, including meaures to end gazumping but no law has offically been put in place. As for gazundering it seems that no one in Government has looked into this matter in as much scrutiny as that of gazumping.
Many estate agents believe that gazundering is as much an issue as gazumping is in the UK and would like to see a change in Government's attitudes towards this. Why is gazumping more on Government policymaker's minds than that of gazundering? Surely we can agree that both are equally as bad as one another. Changes have to be made, but when is the question? At the moment it is suggested having a great relationship with your Sales Negotiator and knowing how well they are able to negoitate and push the sell process forward in a timely manner is winning only half the battle. Remember one thing though; try to follow our tips above to try and avoid both gazumping and gazundering.
If you require a sales evaluation or are looking to sell or buy a property, why not contact our Sales Team on 0208 459 3333 or email us at firstname.lastname@example.org. We are happy to be as transparent as possible to help you achieve your property goal(s) while ensuring to be realistic in today's competitive market.