Gazundering
Last year, there was a 97% increase1 in people searching for the word ‘gazundering’ – when a homebuyer reduces their offer on a property at the last minute, sometimes just before completion. This leaves the seller in a difficult position, often without much choice but to accept a lower price. Gazundering is indicative of a buyer’s market where there are more properties on sale than people wanting to buy.
Gazumping
In periods where the tables are turned and the market favours the seller, gazumping may occur more – this is when a seller receives a higher offer from someone else, even though the transaction process has started with a different buyer.
Stricter rules in Scotland
Interestingly, both gazundering and gazumping are not as commonplace in Scotland – while it does still happen, Law Society of Scotland has rules in place to prevent gazundering and gazumping. Solicitors acting on behalf of property buyers are not permitted to lower their initial offer, while those representing property sellers cannot accept an offer from another buyer.
1GetAgent.co.uk, 2023
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.