'My buyers dropped their offer by £15,000 the day before exchange': Gazundering and how to avoid it
Summary
Gazundering is when a buyer lowers their agreed house price just before contracts are signed, pressuring the seller to accept or lose the sale. It is a growing issue in England and Wales, costing sellers and the economy millions each year, and the government plans to introduce legal reforms to reduce this problem.Key Facts
- Gazundering means buyers reduce their offer right before exchanging contracts.
- Offers are not legally binding until contract exchange in England and Wales.
- About one in three house sales fail before exchange, costing sellers £400 million yearly.
- The wider economy loses roughly £1.5 billion each year due to failed sales.
- Government reforms aim to shorten the buying process by four weeks and penalize last-minute renegotiations.
- The housing market currently favors buyers, leading to more gazundering cases.
- Sarah’s buyers lowered their offer by £15,000 a day before contract exchange but then agreed to the original price.
- Sellers face financial risks such as repeated legal and removal fees if sales fall through.
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