British anti-gazundering

Despite recent reports of an increase in “gazundering” across the market, a recent survey reveals that 74% of people moving home would not consider lowering their offer on the day of exchange to force the vendor to sell at a lower price. A further 60% responding to the survey by house move website Moveme.com claimed that if their buyer tried to employ this low tactic, they would withdraw from the sale completely – preferring to put their property back on the market rather than sell to an underhand buyer at a lower price. ‘Despite the current difficulties in the housing market, the majority of buyers remain adamant that they would not consider gazundering, refusing to use what are deemed devious tactics to knock money off an already agreed purchase price. ‘The fact that 60% of movers claim the would terminate their sale completely, refusing to sell to a buyer attempting gazundering provides a stark warning: those buyers considering this tactic are playing a very dangerous game, which could easily result in them losing out on their purchase altogether,’ says Keith McNeilly, from Moveme.com. However, the reality is many buyers across the market are resorting to gazundering, according to estate agents. Ivor Dickinson from Douglas & Gordon in central and south west London suggests gazundering and gazumping (the opposite of gazundering, where the seller demands more money on the day of exchange) might not be a bad thing after all. ‘If you offer less or more money near or on the day of exchange, this could well be an indication of what a property is worth. In the current market, you have more time to establish the real value of a property,’ says Mr Dickinson. ‘Buyers who favour the “bid and chip” approach ask for several thousand pounds off the asking price usually on a Friday afternoon,’ points out Dickinson’s colleague Ed Mead, in Douglas & Gordon’s Chelsea office. Vendors are vulnerable and want the deal clinched before the weekend – so, they generally accept the lower offer.