Selling your home can be difficult and there are many things that vendors need to be aware of. It is hoped that the deal goes smoothly and that if you are involved in a chain there are no nasty surprises for you, but as you probably know, many problems can arise when it comes to property deals. One issue that some vendors have had to deal with in recent times is gazundering, and at Spencer Harvey, we want to ensure that you are aware of this.
Gazundering is something that may arise on the day of the exchange and it occurs when the buyer changes their offer to one that is significantly lower than the price that had been agreed. The buyer clearly believes that the seller will be so desperate to sell their property at this late stage that they will accept a lower offer.
Gazundering is a threat to vendors
In some cases, this will happen. The vendor is likely to be hugely annoyed and angry at receiving an offer of this nature at this late stage but depending on their circumstances, they may find accepting it more sensible than turning it down.
However, depending on the connected plans the vendor has made, perhaps even including buying their next home, accepting a low offer may see them unable to afford their next move. It is not uncommon for some homeowners to refuse this offer, which leads to the deal collapsing.
Gazundering has been an issue before in the property market
It has been noted that the last time gazundering was notable in the property market was during the last property market crash of 2008. Jeremy Lead is a former Chair of RICS and he has spoken about gazundering recently, saying; “The last time we saw a rise in gazundering was around 2008, when the market softened as a result of the financial crisis. Of course, it really depends on the prevailing conditions in your local area but we are seeing the classic ingredients that together, contribute towards an environment which can lend itself towards buyers becoming more opportunistic; slowing demand, surveyor down-valuations, longer transaction times and unrealistic seller expectations in terms of achievable sale price.”
At Spencer Harvey, we are property market specialists and we have considerable experience in a broad range of issues and matters. It makes sense to call on the experts for help and support. If you have any problems that you need assistance with when it comes to the property market, get in touch and we will be happy to help. If you are looking for information about the range of developments occurring in the town, please get in touch. Feel free to contact us on 0161 480 8888 or send us an email at info@spencerharvey.co.uk. For a free valuation please visit: https://www.spencerharvey.co.uk/valuation-enquiry.html