Gazumping and gazundering are not always carried out intentionally to save money. Sometimes buyers and sellers experience challenges while they are between homes, and a good agent can help you overcome them.
What is gazumping?
You are elated that your offer on the home you have chosen has been accepted. A few days before completion, the person selling their property accepts an offer from another buyer. Although you may feel furious and a little heartbroken, this is perfectly legal.
How can you avoid gazumping?
- Get organised
Don’t delay or waste any time. If you are organised, then you can move quickly. So, communicate with your agent and start the paperwork process as soon as possible.
- Sort your mortgage
Working with a good agent helps speed things up, but if you don’t have your mortgage agreement in principle in place, delaying gives your seller more time to consider offers.
- Choose your conveyancer or solicitor wisely
You don’t want a slow solicitor or conveyancer. Call them regularly for updates until they get the job done. Your agent could recommend a reputable firm for you.
- Negotiate the removal of the property from the market
When making an offer as part of the deal, ask your agent if the seller is willing to remove their property from the market.
- A lock-out agreement
You may be able to draw up a contract that will set out a given period of time in which the buyer has exclusive rights to buy the property.
- Gazump your gazumper
If you really love the property and are determined to buy it, and your finances allow it, you could simply make a higher counter-offer; a small increase can make a big difference.
What is gazundering?
The boot is on the other foot in this case, as a buyer of a property lowers their offer, usually at the last minute. Like gazumping, this is perfectly legal until the exchange of contracts.
How can you avoid gazundering?
- Set a date for the exchange of contracts
This is like setting deadlines for solicitors or conveyancers, the buyer, and the seller to work to. This will keep momentum going and reduce the risk of a buyer reducing their offer.
- Pricing is critical
Understanding the property market is important. Your agent’s skill and experience in pricing accurately are crucial in valuing your property accurately.
- Valuing your home
Good agents conduct face-to-face valuations and will find the right value for your home, and this will help prevent gazundering and gazumping in the first place.
- Avoid leaving surprises
Hiding issues that may affect the value of your home, which will inevitably be discovered during a survey could encourage gazundering.
- Consider chain-free buyers
There is no guarantee that this will prevent getting gazundered, but a chain-free buyer will move more quickly than a buyer in a chain.
- Be prepared
The golden rule when moving home is to be organised. Anything that could delay your move, from paperwork, mortgages, and poor communication to choosing the wrong agent.
A good agent is crucial
An experienced agent could prevent and will certainly minimise the risk of either of these scenarios happening by matching the right buyers with the right homes. But even if these situations do arise, a discerning agent will help manage your situation so that your moving dreams do not become thwarted. Agents do not just sell properties but also represent your best interests and position in the market. They can improve your ability to buy or sell by always presenting you in the best possible light so that your home move is a success.