Gazundering: Understanding the Last-Minute Price Negotiation Tactic

What is Gazundering?

Gazundering is a practice where a buyer reduces their offer on a property shortly before completion. This often happens after surveys or valuations have been completed, putting the seller in a difficult position.

Key Concepts

• Buyer’s Tactic: A last-minute attempt to renegotiate the price.
• Timing is Crucial: Occurs very late in the transaction process.
• Leverage: Buyers exploit the seller’s commitment and potential loss of the sale.

Deep Dive into Gazundering

This tactic preys on the seller’s desire to complete the sale and avoid the costs and delays of finding a new buyer. The buyer might cite minor issues found during surveys or simply make a unilateral decision to offer less, knowing the seller may feel pressured to accept.

Applications and Scenarios

Gazundering is most prevalent in the property market, particularly in competitive or uncertain economic conditions. It can also occur in other high-value transactions, though less commonly.

Challenges and Misconceptions

While legal, gazundering is widely considered unethical. It can cause significant financial and emotional distress to sellers. A common misconception is that it’s a legitimate negotiation tactic, rather than a form of pressure.

FAQs

Can a seller refuse a gazundered offer?

Yes, a seller can refuse and potentially lose the buyer, but this often leads to significant delays and costs.

What can sellers do to prevent gazundering?

Having a robust contract and clear communication can help, but ultimately, it’s a risk sellers face.