"It used to be that gazundering was seen as really bad form and an underhand tactic that most people wouldn’t consider, but now I expect it to pop up on every deal."
- Simon Nosworthy - Osbornes Law
Almost 90% of homebuyers are now attempting to reduce the agreed sale price of properties at the last minute, a leading property lawyer has warned. The practice, known as gazundering, has become widespread amid a weak property market.
Simon Nosworthy, head of residential conveyancing at Osbornes Law, explained that almost every residential property deal currently involves buyers trying to secure an eleventh-hour price cut.
“The rise in gazundering has been nothing short of staggering in the past year. A chronically weak property market has meant buyers are taking advantage to the point where trying to get money off at the last minute has become standard practice,” he said. He added that three years ago, only around 50% of buyers attempted the tactic.
Gazundering typically occurs just before the exchange of contracts. Buyers often cite issues uncovered during property surveys, such as damp, plumbing problems, or faulty electrics, to justify their request for a lower price.
Nosworthy noted: “It used to be that gazundering was seen as really bad form and an underhand tactic that most people wouldn’t consider, but now I expect it to pop up on every deal. It seems that only people of absolute principle don’t consider doing this. The attitude seems to be that if everybody else is doing it, then why not me as well?”
He added that the property market is currently at its weakest level since the first quarter of the pandemic, when property moves dropped sharply. “The result of that is sellers are desperate to keep hold of their buyers and tend to let them have money off,” Nosworthy said.
While difficult to avoid entirely, there are steps sellers can take to protect themselves. “We advise sellers to price up fittings and contents, such as fridges, washing machines, and televisions. These can then be used as bargaining chips when the buyers try to get money off,” he explained.
“Sellers should make sure their property is in the best possible order before they put it on the market. Getting quotes yourself and getting the work done in your own time is better than being held to ransom by the buyers insisting their workmen and quotes are used. It is the properties where nothing needs to be done and all the necessary guarantees are in place that we see no gazundering taking place at a time when trying to get money off has become the norm.”
