Gazundering


Gazundering is where the buyer asks for a reduction of the agreed purchase price at the 11th hour. Normally after survey or just before the exchange of contracts.

It might however reflect a genuine downturn in property prices or in light of information supplied by the surveyor.

For the seller:

Your first reaction will be, what! Your next reaction will be, why? You may want to consider the reasons why the buyer has asked for a reduction. If it's due to a bad survey, ask for a copy.

You may just say no to a reduction via your solicitor. You could call the buyer. However, there may be a genuine reason, so investigate before making your decision. You may have someone else waiting in the wings and/or you may be in a chain. It's never a pleasant experience and a lot will depend on your decision. Agreements can help to avoid gazundering. These involve an agreement stating that the price cannot be negotiated during the period of due diligence. As a vendor you may wish to state this in your acceptance of the offer so that everyone is clear from the outset.

Yannups advice:

If the requested price reduction is genuine, then consider it. If not, stick by your guns.

For the purchaser:

Gazundering. Be careful! You may lose the property. The seller may gazump you or refuse to sell you their property. There may be a real reason for reducing the agreed purchase price. If you do have a genuine reason, we recommend contacting the seller directly or via your solicitor stating the reasons why you wish to reduce the agreed purchase price.

Agreements can help to avoid gazundering. These involve the buyer and seller signing an agreement stating that the price cannot be negotiated during the period of due diligence. The seller may state this in his/her acceptance of your offer so that everyone is clear from the outset.

Yannups cannot except any responsibility for decisions made.

For further information Law of Property (Miscellaneous Provisions) Act 1989.