Nearly a third of home sellers are being gazundered by their buyers with many dropping offers just a week before the sale was set to complete.

Research from House Buyer Bureau found that three in 10 sellers (31%) had experienced gazundering during their last property transaction.

EXCHANGE

And for half (51%) this happened more than two weeks before they were due to exchange.

Some 15% stated it had happened within two weeks of their exchange date, while as many as 33% said it had happened within a week of their exchange date.

Despite the returning scourge of gazundering three out of four (75%) sellers decided to press ahead with the transaction, accepting the lower offer. Of those that didn’t, one in five (21%) said the sale ended up collapsing.

GAZUNDERING

When asked what the reason was for their buyer gazundering them, the most common reasons given were that there were issues found during the survey process, as well as survey issues resulting in a down valuation.

With high demand and inadequate stock levels many buyers are trying to outbid their rivals right to the death.”

Chris Hodgkinson, Managing Director of House Buyer Bureau, says: “We’ve heard a lot in recent years about the backhanded practice of gazumping, with high demand and inadequate stock levels resulting in many buyers trying to outbid their rivals right to the death.

“Despite these cooling market conditions, there remains an air of stubbornness amongst the nation’s sellers who are yet to fully accept this change in market temperature and, as a result, almost a third are being gazundered with a lower offer having originally agreed a price with their buyer.

“While this trend is being driven by opportunistic buyers to some extent, it’s important to note that in many cases, it’s due to issues found during the survey and the resulting down valuation. Therefore, while many sellers are being gazundered, they are proceeding on the basis that the secondary offer made is still a fair one.”