Gazundering!

[Local Dulwich]

Any views about this trend that appears to be happening more often!

Has recently happened to us and we had to accept a considerable reduction in agreed price for our property  (that was already well below asking price)

 

 

[Earl Aelfheah]

My view is that it's really, really poor behaviour. Unfortunately some people are rubbish.

[vladi]

Roll on the time  , if ever, when we adopt the Australian system whereby the agreed price becomes binding. The whole process takes place much more swiftly and with less hassle than it does here. Scotland have a good system also.

[malumbu]

On 21/05/2025 at 23:52, Local Dulwich said:

Any views about this trend that appears to be happening more often!

Has recently happened to us and we had to accept a considerable reduction in agreed price for our property  (that was already well below asking price)

 

 

It's a case of who blinks first.  But  purchasers who do this will lose all good will form the owner and will probably suffer life changing accident as the Gods won't be smiling on them.

Edited May 24 by malumbu
Hypos sorry predictively tact

[Sue]

It's terrible behaviour.

One consolation could be to be thankful you aren't them.

[Local Dulwich]

Should Estates agents also take some responsibility for this. 

In our case it feels like they have been acting on behalf of the buyer not the seller even though we are paying then for their service. 

Just to be clear I have reassured the buyer whose house we are buying off that we still pay them what we promised.

When this is all over should I states which Estate agent is involved?? 

[Sue]

9 hours ago, Local Dulwich said:

When this is all over should I states which Estate agent is involved?? 

Yes, if you think they have been complicit in this.

When you say you "had to" accept the lower price from your buyer, was that because of the timing of your purchase?

[Moovart]

It's my understanding that estate agents are obliged to put forward any offer to the seller made to them by the buyer. The decision to accept us up to the seller. 

If you're in a chain and someone in the chain has the brass neck to threaten to pull out at the last minute unless you take their lower offer, you're in a very tricky position and the gazunderer knows that.  It's a really nasty thing to do but a crappy person will do it to save money. 

That's why if you can be at the top of a chain by going into rented or some other temporary solution you're in a much stronger position to tell the gazunderer to take a running jump which is very satisfying.

[diable rouge]

It's certainly a risky strategy, as well as ticking everyone off, the gazunderer risks losing the property and also their costs incurred during the process e.g. legal & survey.

It's hard to mitigate against but I always think that if you're desperate to sell, don't ever convey that  to your estate agent, as that info more than likely gets passed on to potential buyers. You should be doing that regardless of whether gazundering is happening or not, as it will affect the offers you receive...

47 minutes ago, Moovart said:

It's my understanding that estate agents are obliged to put forward any offer to the seller made to them by the buyer. The decision to accept us up to the seller. 

That's correct. Some agents have policies in place to 'discourage' gazundering and gazumping, but ultimately it comes down to the morals of the buyer...

[malumbu]

I once had some very grumpy buyers, I'd moved heaven and earth and compromised a little on price, was tempted just to tell them where to go and put it back on the market - I wanted to get rid but could hang on longer.  I bit my lip, and they sent me a very stroppy email which I deleted without reading.

Ideally we'd get on with our buyers and sellers, always try to meet them, and you can often sort out issues directly.  Estate agents tend to not like you have the other parties details.

I've generally had more problems with the ones I've not met. It can be stressful for both sides.  You often get an inkling whey you know that they may be awkward, and that includes going the other way with a last second increase in price when markets are moving upwards.  Again, bad karma!

[tomskip]

Why do you think your Estate Agent would want to see your house sold for a lower price OP? 

[malumbu]

Because they want a sale and in the current buyers market prices could be forced down.

[Azalea]

On 24/05/2025 at 23:23, Local Dulwich said:

Should Estates agents also take some responsibility for this. 

In our case it feels like they have been acting on behalf of the buyer not the seller even though we are paying then for their service. 

Just to be clear I have reassured the buyer whose house we are buying off that we still pay them what we promised.

When this is all over should I states which Estate agent is involved?? 

Yes please. I’ve had experience of this with two different local agents.  If a survey shows masses of previously unknown issues then I can see asking for the price to be reduced but not in the form of gazundering. I too felt as if the agent was acting for the buyer. What commission are they charging?

[CPR Dave]

Its usually 1 to 2 %.

Say it's 2% and a house sells for £1million, the agency takes £20,000. The induvial selling the house might be eligible for £2,000 commission from that. 

If the gazunderer bring s the price down to £950,000, the agency takes £19,000 and the individual gets £1,900 commission. 

In those circumstances they don't care if you lose £50,000. They are only out of pocket by £100.

[malumbu]

They have to balance the buyer's wish and getting a swift sale, but yes at the end of the day they will take a small hit.  But this is the nature of the market and a case to move to a better system rather than demonise estate agents.

[Local Dulwich]

House sale was completed yesterday.

Yes we were 'gazundered' by £75,000. 

Able to look the buyer in the eye when he came to collect the keys. He clearly didn't want to discuss any further, But I expressed my view to him that whilst what he did was not illegal it was immoral. 

What else can we do??

Apart from a law change 

[Spartacus]

Did you watch this ? 

https://www.bbc.co.uk/iplayer/episode/m002fygs/panorama-undercover-estate-agent

it talks about some of the issues raised here. 

[vladi]

On 24/05/2025 at 23:23, Local Dulwich said:

Should Estates agents also take some responsibility for this. 

Occasionally when this happens, the estate agent is complicit. Had this happen to our neighbour and we later found that the house was bought by the sister of the estate agent at the reduced price.

The agent is in an advantageous position as he/she is aware of the seller's circumstances and occasionally one will go rogue to do a favour for a relative/friend.

[malumbu]

It's unprofessional, and possibly illegal.  There are procedures to complain.

[Azalea]

19 hours ago, Local Dulwich said:

House sale was completed yesterday.

Yes we were 'gazundered' by £75,000. 

Able to look the buyer in the eye when he came to collect the keys. He clearly didn't want to discuss any further, But I expressed my view to him that whilst what he did was not illegal it was immoral. 

What else can we do??

Apart from a law change 

Please name the agent and the company.  So sorry this happened to you. You could also refuse to pay the commission.

[diable rouge]

Naming the agent isn't going to help in this case, this is down to the morals (lack of) of the buyer.

I think it's always best, esp in a buyer's market, to keep details such as 'you're keen/ need to sell' to one's self, otherwise you're just giving the buyer leverage to pull a stunt like this...

[Local Dulwich]

Happy to name agent and do understand that there are procedures to complain. I believe that it starts with a complaint to the estate agent and then you can go to the ombudsman. I am very unhopeful that this will achieve anything as it will be hard to prove what the intention of the agent was. 

Also I don't want to name the agent at this stage so as not to open up myself to any legal issues. However it is an agent in the Village whish has many branches across London