27 July 2018

Selling Your Home In Highcliffe? Be Wary of Gazundering

Posted by: IanWatson

Even though there is supposedly an elevated level of demand for property, it is important that homeowners know that there are many challenges when selling your home. At Mitchells Estate Agents, we are on hand to provide guidance, assurance and confidence when it comes to selling your home in Highcliffe and surrounding areas, and our track record indicates that we are the local estate agents that vendors can trust.

One of the reasons we can be relied on is because we know what challenges arise when selling your home. Hopefully the home selling process runs smoothly but if problems arise and you need to respond quickly and strongly, it is best to have the assistance of a skilled and experienced professional. One matter that has arisen again recently, having not been much of an issue in the UK property market since 2008, is gazundering.

Gazundering can occur on contract exchange day

It is likely that you have heard of gazumping, but you may not be familiar with gazundering. Gazundering occurs on the day when contracts are exchanged, and it sees the buyer making a fresh and lower offer on the home. This comes after a price has been arranged and it leaves the homeowner in a difficult position.

If you have plans to buy your next home and you don’t want the chain to collapse, you may consider accepting this offer to ensure that plans can proceed. Therefore, some prospective buyers are willing to gazunder. There is an opportunity for these buyers to save considerable sums of money when buying a home, and as gazundering is perfectly legal, many buyers will be able to justify this action. A lot of people will consider gazundering to be an immoral act, but every individual has their own viewpoints on morality and when a lot of money can be saved, these views may fluctuate.

Be aware of your budget constraints

As a homeowner, it is essential that you know your budget and you are aware of the lowest price you can afford to still proceed with your plans. It may be that the gazundering offer is too low for you to proceed with your plans and if the buyer is unwilling to increase their bid back to closer to what had previously been agreed, it may be that there is no other option but to let the transaction collapse.

Whether you accept a lower offer or the deal collapses, you have some big decisions to make, and you will need to make them at short notice. It is best that you have help from an expert in this field and as your local estate agents, Mitchells Estate Agents are on hand to offer guidance and advice. However, our expertise can also help to minimise the likelihood of gazundering occurring.

Factors that can reduce the likelihood of gazundering occurring include:

  • Setting a fair initial price for the property
  • Communicating effectively with the buying party
  • Responding quickly to any questions or engagement with the buying party
  • Having a set budget for all future transactions after the property sale

These are all areas that Mitchells Estate Agents can assist with. It should be noted that the number of gazundering offers remains relatively low, but as it has been found in various parts of the country, it is best to be aware of this occurrence and knowing how to deal with it. There are many issues that can arise during a property transaction but working with a skilled and experienced estate agent minimises the chances of these unexpected events happening and even if they do occur, an experienced agent can deal with these problems effectively.

Hopefully you will not have to contend with gazundering but in the unlikely event that it does occur, or you are subjected to any other unexpected occurrence, you’ll be glad of support from a skilled and competent agent. If you want the best standard of support when selling your home in Highcliffe, contact Mitchells Estate Agents and we’ll be happy to help.

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