Buying or selling a home is often one of the biggest financial decisions you’ll ever make, and while it’s an exciting time, it can also come with its fair share of challenges. One of the most frustrating issues sellers face is gazundering. But what exactly is it, how common is it, and what steps can you take to protect yourself?
Here’s what you should know to approach this situation confidently and with peace of mind.
What is gazundering?
Gazundering is when a buyer reduces their previously agreed offer on a property, often at the last minute, before contracts are exchanged. For sellers, it’s an unsettling experience that can leave them in a difficult position: either accept the lower offer or risk the entire deal falling apart.
Unfortunately, gazundering is perfectly legal because, in the UK, a property sale is not legally binding until contracts are exchanged. This allows buyers to renegotiate even after months of progress in the selling process.
How common is gazundering?
Gazundering is becoming more frequent, especially in challenging market conditions. For sellers who’ve already invested time, money, and emotional energy into the process, this can be an incredibly difficult situation. Here’s why some sellers choose to accept a lower offer:
- They don’t want to start the selling process over again.
- They’re worried about jeopardising their next property purchase.
- They feel the revised offer is still fair.
- They’re in a rush to sell due to time constraints.
Why does gazundering happen?
Gazundering can happen for a variety of reasons, some more reasonable than others. Often, buyers reduce their offers due to changes in circumstances or as a negotiation tactic. Here are some of the most common reasons why gazundering occurs:
- Problems uncovered in surveys: Property surveys can reveal unexpected issues such as structural damage, damp, or outdated installations. This is the leading cause of gazundering, with around 35% of cases linked to survey findings.
- Taking a chance: Some buyers reduce their offer without a clear reason, hoping the seller will accept it rather than risk losing the sale. This accounts for about 24% of gazundering cases.
- Financial strain: Rising mortgage rates or changes in the buyer’s financial situation may force them to reconsider their budget. Approximately 11% of buyers lower their offers for this reason.
- Lower property valuations: Sometimes, a lender values the property below the agreed price, causing the buyer to renegotiate. This situation leads to 9% of gazundering cases.
- Rising living costs: In some instances, buyers find themselves unable to afford their original offer due to financial pressures like the cost of living, which accounts for 4% of cases.
- Market trends: When the housing market slows, buyers often feel more confident about renegotiating, especially if sellers are more willing to negotiate to secure a sale.
While some of these reasons are understandable, others can feel unfair to sellers. Knowing the factors that drive gazundering can help you anticipate potential challenges and prepare for how to handle them effectively.
Relates: Why brokers more important now than ever
How to avoid gazundering
While you can’t eliminate the risk of gazundering entirely, there are several steps you can take to reduce its likelihood.
Set a realistic asking price
Overpricing your property can make buyers more likely to renegotiate later. Work with an experienced agent such as Parkers who understand local market trends and get multiple valuations before setting your price. A realistic price can help avoid disputes further down the line.
Be upfront about property issues
Transparency is key. If your property has issues like an old boiler or minor repairs, make buyers aware early. When surprises arise during a survey, buyers often use them to justify lowering their offer.
Choose the right buyer
It’s not just about the highest offer; it’s about finding a buyer who is serious and financially stable. Our agents will be able to help with this. Look for a proceedable buyer, such as someone who is chain-free or has their finances in order. First-time buyers are often safer as they’re eager to complete their first purchase.
Work with an experienced estate agent
A good estate agent can help you navigate negotiations and ensure buyers understand you’re unwilling to accept reductions. They’ll also keep the sale on track by facilitating clear and regular communication.
Keep the process moving
Delays can give buyers more time to reconsider or face financial hurdles. Respond promptly to requests for information and encourage your solicitor to keep the process progressing smoothly.
Be in a strong position to say ‘no’
If possible, remove the pressure of needing to sell quickly. Renting your next home or having flexible living arrangements can give you the confidence to reject a reduced offer if gazundering occurs.
Related: What is the difference between conveyancers, solicitors and surveyors?
How to respond to gazundering
If you find yourself in a situation where a buyer has lowered their offer, here’s how to deal with it:
- Stay calm: It’s natural to feel frustrated, but remaining composed will help you make better decisions.
- Assess the reasons: Ask the buyer why they’re reducing their offer. If it’s due to legitimate survey issues, consider whether their concerns are reasonable.
- Negotiate: To proceed with the buyer, explore a compromise. For example, you might meet them halfway on the revised price.
- Know when to walk away: If the reduction feels unfair or the buyer seems unreliable, don’t hesitate to decline the offer and look for another buyer.
Remember, it’s your property, and you’re not obligated to accept an offer that doesn’t feel right.
Is gazundering legal?
Yes, gazundering is legal in the UK. The property market operates on a principle that agreements are not binding until contracts are exchanged. While this protects buyers, it also leaves sellers vulnerable to last-minute price cuts.
In contrast, gazumping — where a seller accepts a higher offer after agreeing to sell to someone else — is equally legal in England and Wales. Both practices can feel unfair, but they’re part of the property market.
If gazundering does happen, evaluate your options carefully. Sometimes, accepting a revised offer makes sense, while other times, it’s better to walk away and start fresh. Whatever you decide, staying informed and prepared will help you navigate the situation confidently
For expert guidance and tips on navigating property sales, contact your local Parkers branch today!
