Gazundering returns
Recent events in the housing market have led to the return of a phenomenon that many people thought was consigned to history - gazundering.
At its simplest, gazundering occurs when a buyer, close to the moment of contracts being exchanged, suddenly demands a discount from the vendor. This might reflect a genuine fall in the value of the property, or it may be an attempt to exploit a vendor's fears about finding another buyer in a tough market.
Naturally, it is a favourite tactic of first-time buyers, who have nothing to lose. For vendors, however, who are often in a chain and reliant on receiving a minimum price to proceed with their own purchase, it can present an enormous dilemma.
According to a report in the Guardian, Peter Bolton King, Chief Executive of the National Association of Estate Agents, has heard reports that gazundering is making a comeback.
He warns that it is a risky approach to take. "Buyers thinking they can drive down the price at the last minute are playing a very dangerous game," he says. "Most sellers will take the view that they won't be bullied into lowering the price. By gazundering the buyer not only risks losing the costs they have incurred, but all those incurred up and down the chain."
If you are concerned that you may become a victim of gazundering, experienced property lawyer Julia Smart will be able to advise you on what to do. Call Julia Smart on 0117 9290451 or email jsmart@metcalfes.co.uk
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