June 22nd 2024.
Many homeowners are facing a frustrating trend in the current housing market where buyers are reducing their offers at the last minute, just before the contracts are set to be exchanged. This was the case for Katharine Storr, a 38-year-old mother of three who was selling her family home in Tooting. The day before the exchange, the buyers suddenly lowered their offer by £30,000, citing minor issues from the survey as reasons for the reduction. Katharine and her husband Matt felt they were being taken advantage of, especially since they were under pressure to move in time for their children's schooling.
Unfortunately, this is a common occurrence for sellers in the current market, known as gazundering. According to research, 31% of UK home sellers have experienced this in the last six months of 2023, with a third of them having it happen within a week of the exchange date. Another study showed an increase of 13% in gazundering cases between October and November of last year, with 17% of sales falling through as a result. This practice adds even more stress to an already stressful process of moving homes.
Katharine described feeling upset and angry at the sudden reduction in the offer. She felt like the buyers were inventing issues to try and lower the price. However, they were backed into a corner and had no choice but to accept £15,000 less than the original offer. This is a common outcome for many sellers who are gazundered, with 75% of them giving in to the pressure and accepting the lower offer. Reasons for this include believing the new offer was still fair, not wanting to jeopardize their onward sale, and not wanting to waste more time finding another buyer.
This was the case for Evie Richards, a 25-year-old deputy SEO editor from South London, who was selling her house after a breakup with her boyfriend. Despite already receiving an offer £20,000 below asking price, Evie and her ex agreed to sell the house at the lower price in June of last year. However, in September, just before the exchange, the buyer called and threatened to walk away if they didn't accept a further reduction of £30,000. This caused Evie a lot of stress and she recalls feeling terrified that the sale would fall through. After a lot of back and forth, they were able to negotiate the price to only £7,000 below the original offer, but Evie still felt like it was a waste of time and money.
The current housing market, where buyer demand is low, puts them in a position of power and makes gazundering a less risky option for them. On the other hand, when the market favors the seller, gazumping becomes more common. This was evident in the Google search popularity for the term "gazundering" which rose by 97% in 2023, while property sales were down by 17%. Maria Bailey, a 47-year-old director, experienced this firsthand when a buyer dropped his offer by £60,000 just before the exchange. Maria refused and took another offer just below asking price, but the gazunderer later changed his mind and offered the full asking price, claiming it was his dream home.
As the economic downturn has created a buyer's market, many sellers like Katharine, Evie, and Maria have fallen victim to this frustrating trend. It's a reminder of the stress and uncertainty that comes with selling a home, and the importance of being prepared for any unexpected changes in the market.
Many sellers have been experiencing a frustrating trend in the current housing market: gazundering. This is when a buyer decreases their offer at the last minute in order to pressure the seller into accepting a lower price. In fact, recent research has shown that 31% of home sellers in the UK have been victims of this tactic in the last six months of 2023. This is a significant increase from previous years, and it has caused a lot of stress and frustration for those trying to sell their homes.
Katharine Storr, a 38-year-old mother of three, was one of the many sellers who fell victim to gazundering. Just one day before she was supposed to exchange contracts on her family home, the buyers suddenly reduced their offer by £30,000. Katharine and her husband Matt, who live in Tooting with their children, were shocked and upset by this unexpected turn of events. They felt like the buyers were trying to take advantage of them, especially since they were in a vulnerable position with their children's schooling and the stress of moving.
Unfortunately, this type of situation is becoming more and more common in the current housing market. As a result, many sellers are feeling pressured to accept lower offers in order to avoid wasting time and potentially losing their onward sale. Evie Richards, a 25-year-old from South London, experienced this firsthand when she and her ex-boyfriend were trying to sell their house. They had already accepted an offer that was £20,000 below their asking price, but the buyer suddenly demanded a further reduction of £30,000. Evie felt like she had no choice but to accept in order to avoid losing the sale altogether. She described the experience as a waste of time and money, and she was constantly worried that the buyer would back out.
The current housing market is favoring buyers, which puts sellers in a difficult position when it comes to negotiating prices. This is why gazundering has become such a prevalent issue. On the other hand, when the market favors sellers, a similar tactic called gazumping becomes more common. Maria Bailey, a 47-year-old mother of three, was almost a victim of gazumping when a buyer suddenly reduced their offer by £60,000 on her Torbay home. She ultimately decided to decline the offer and accept a different one, but the buyer later came back and offered the full asking price. This goes to show the unpredictable nature of the housing market and the stress it can cause for both buyers and sellers.
The increase in gazundering and other similar tactics has been attributed to the current economic downturn, which has created a buyer's market. This means that buyers have more power and can negotiate for lower prices, while sellers are feeling the pressure to accept these offers in order to sell their homes. It's a frustrating and stressful situation for all parties involved, and there are currently no restrictions in place to prevent it from happening. This has led to a rise in Google searches for terms like "gazundering" and has caused a lot of concern for those trying to sell their homes.
In the end, the housing market is constantly changing and it's important for both buyers and sellers to be aware of these trends and how they can affect their transactions. While it's understandable for buyers to try and get the best deal, it's also important for them to be considerate of the stress and frustration that their actions can cause for sellers. Hopefully, measures will be put in place to prevent gazundering and other similar tactics in the future, making the process of buying and selling homes a bit less daunting for everyone involved.
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