An incredible 90% of home buyers are ‘gazundering’ to reduce the agreed sale price of properties at the last minute to take advantage of the "woefully weak property market", a property lawyer has warned.
Simon Nosworthy, head of residential conveyancing at Osbornes Law, says almost every residential property deal currently involves the practice of the buyer trying to get an eleventh hour price cut. In comparison, 50% of buyers tried to gazunder three years ago.
Gazundering typically occurs just before the exchange of contracts, with buyers citing issues uncovered during property surveys, such as damp, plumbing issues, or faulty electrics, to justify their demand for a price reduction.
Simon said: "The rise in gazundering has been nothing short of staggering in the past year. A chronically weak property has meant buyers are taking advantage to the point where trying to get money off at the last minute has become standard practice.
“It used to be that gazundering was seen as really bad form and an underhand tactic that most people wouldn’t consider but now I expect it to pop up on every deal. It seems to be that only people of absolute principle don’t consider doing this. The attitude seems to be that if everybody else is doing it then why not me as well?
“The property market is the weakest it has been since the first three months of the pandemic when property moves fell off a cliff. That result of that is sellers are desperate to keep hold of their buyers and tend to let them have money off.”
Simon says it is difficult to avoid being gazundered, but there are things sellers can do to protect themselves.
He said: “While it’s a difficult market for sellers there are some tactics that they can use to try and avoid being gazundered. We advise sellers to price up fittings and contents, such as fridges, washing machines and televisions. These can then be used as bargaining chips when the buyers try to get money off.
“Sellers should make sure their property is in the best possible order before they put it on the market. Getting quotes yourself and getting the work done in your own time is better than being held to ransom by the buyers insisting their workmen and quotes are used.
“It is the properties where nothing needs to be done and all the necessary guarantees are in place that we see no gazundering taking place at a time when trying to get money off has become the norm.”
