HOW TO AVOID FALLING VICTIM TO GROWING PROBLEM OF GAZUNDERING

RISING numbers of people putting their homes on the market are concerned about ‘gazundering’ – which sees a buyer lowering an original offer just before the exchange of contracts.

The term itself has seen a sharp  rise in google search activity, according to one estate agent comparison website. Get Agent says the number of people searching for the term has soared by 97 per cent since last year.

“This is a rising problem and there’s nothing stopping someone trying to get you to agree to a lower price,” says property expert

Jonathan  Rolande, founder  of House Buy Fast. “Until you exchange a contract, there’s no legal agreement between you and the other party to purchase your house at the price offered.

“Gazundering is more frequent  when a property has been on the market for a longer period of time or there are more sellers than buyers.

“And it’s more common if a buyer  knows the seller is in a rush to sell or needs to get a buyer because of financial reasons, which is more likely if someone’s mortgage deal has come to an end and they are faced with higher monthly payments.

“A seller who has taken their  property off the market, expecting the contracts to be signed, may feel they are in a weaker position, with a buyer looking to save money by taking advantage of onward chains.”

Mr Rolande said that sometimes  a buyer may offer a lower price for a more legitimate reason, such as an issue raised in a survey or if property prices overall drop considerably.

He continued: “Either way, it  has an impact on the affordability of the seller to purchase another property.

“It could be that the buyer  has had the same thing happen to them and has no option but to reduce the amount they can offer for yours, rather than restart the search for a new property.

“Sellers shouldn’t feel pressure  to accept a lower offer, though. Often it’s a buyer trying their luck to save a few thousand pounds but it’s still worth doing your research to avoid it happening to you.

“There are steps you can take to avoid falling victim to gazundering,” says Rolande. “The most important is to pick an estate agent you can trust who can demonstrate their track record in valuing properties correctly. Any reputable estate agent will be able to show you this when you approach  them to market your property.”

*Gazundering

– Here’s Jonthan’s 5 tips on how to avoid falling victim

Price: Put your property on the market at a realistic  price. Selling efficiently, ideally within the first few weeks of your home appearing on the market, shows buyers they need to move quickly to get a great property at a good price and stops them feeling they hold all the cards.

Time: Keep the sale moving quickly. Make sure solicitors and estate agents prioritise your sale and don’t keep the buyer hanging on. The longer a buyer has to think about things, the more likely they are to re-consider the price or even get cold feet altogether.

Don’t cover up problems. Whilst it’s fine to present your home in the best possible way, don’t try to hide defects that might affect the price. All mortgage providers require a survey and once they are discovered the price will have to be adjusted down.

Professional buyers are often preferred because they are experienced and usually don’t need a mortgage. However, because they buy with head, not heart, they won’t overlook problems that someone buying a home for themselves might take on. But every buyer and every home is different so take advice from your estate agent to help choose the right buyer.

Meet your buyer. When there is personal contact you can develop trust with each other. Buyers are more reluctant to reduce the price, especially after a handshake, as a relationship has been created.