Gazundering Hits UK House Sales.

Those selling their house are increasingly faced with the legal, but painful, practise of gazundering.

Gazundering is the term used to describe the practise of lowering your offer a few days before exchanging contracts. Because house prices are falling, sellers have the option of refusing the new offer or risking going back on the market to try and sell at an even lower prices

The national association of Estate agents say that half of all home sales are being affected by gazundering. The practise of gazundering often increases during falling property prices. When prices are rising - gazumping is more likely (people putting in a higher offer)

What can be done to Insure against Gazundering?

For home sellers there is little to legally protect against gazundering. One can try to keep in close contact with the buyers; one could try to exert moral pressure about the benefits of sticking to the original price. But, with 1000s of pounds at stake, a gentleman’s agreement may not hold much weight.

Exclusivity agreements are sometimes used to protect against gazumping.

Some insurance firms offer insurance against gazumping, so you might be able to get insurance. However, with house prices falling at a rapid rate, few firms are likely to be willing.

Refusing a lower offer.

At the moment, most predictions suggest house prices will fall by another 10-15%. Therefore, refusing an offer could be quite problematic. Also, with transactions falling, it is becoming difficult to attract any interest at all.

London estate agents suggest even in the most desirable parts of London, sellers are accepting offers 33% less than original selling price.