Sarah was busy preparing to move her family from their smaller terrace house into a four-bedroom countryside home. However, mere hours before the planned exchange of contracts, the buyers demanded a price reduction of £15,000. This tactic, known as gazundering, caught Sarah off guard and placed her in a distressing position.
The Conveyancing Association notes that while gazundering remains relatively rare, it is becoming more frequent as the property market shifts in favor of buyers. In England and Wales, offers are not legally binding until contracts are formally exchanged, which creates a window of vulnerability where sales can easily fall through.
Rather than bowing to the pressure, Sarah decided to relist her home. Faced with the possibility of losing the property, her original buyers quickly withdrew their demand and agreed to proceed at the initial price. Despite this resolution, Sarah remains critical of the process, highlighting the emotional toll such tactics take on families.
To protect against gazundering, experts recommend several strategies. Sellers should clearly communicate their financial boundaries to estate agents early on. Furthermore, gathering necessary legal documents and searches as soon as a property hits the market reduces the time available for buyers to manipulate the deal. Other potential safeguards include using reservation agreements or conditional binding offers, which impose financial penalties on parties who withdraw without cause. The government has indicated plans to introduce reforms, including potential fines and legally binding agreements, to curb these last-minute renegotiations.