Estate agency property sales blighted by rise in gazundering

The scourge of gazundering is still blighting the property market, new figures reveal.

Latest research by the House Buyer Bureau found that one in five sellers are being ‘lowballed’ by their buyer.

Gazundering occurs when a buyer submits a lower offer for the property they want to purchase before the sale completes, having already had a higher offer accepted.

Fallen foul

A similar survey by the House Buyer Bureau at the start of the year, found as many as 31% of home sellers had been gazundered, so numbers have fallen.

Of those to have fallen foul of a lower offer in the last six months, 47% stated they were gazundered within just two weeks before their completion date.

Nearly three quarters of those recently gazundered also said they had no choice but to accept the lower offer.

Chancing arm

The main reason given for taking the lower offer was they didn’t want to jeopardise their onward purchase (32%), while many sellers also didn’t want to waste time finding another buyer (24%).

The main reason given by gazundering buyers for submitting a lower offer was the fact that issues were found with the property by the survey (36%), although as many as 22% also admitted to simply chancing their arm.

Of those sellers who didn’t accept the lower offer submitted, 34% stated that the sale then went on to collapse, up from 21% in February of this year.

One in five sellers are still being subject to a lower offer.”

Chris Hodgkinson, MD at the House Buyer Bureau, says: “It would appear that while the market is still underperforming, an air of growing stability has at least led to a reduced level of gazundering on the part of buyers.

“That said, one in five sellers are still being subject to a lower offer, many within two weeks of their intended completion date.”