In short, the property market can be brutal. For many, buying or selling a home is one of the most financially and emotionally charged experiences of their lives. Unfortunately, gazundering is becoming increasingly common as economic uncertainty grows.

So, what’s this gazundering business all about? Why is it rearing its ugly head more often? And—importantly—how can you protect yourself whether you’re the buyer or seller? Let’s get stuck in.

What is Gazundering?

Gazundering occurs when a buyer lowers their offer at the last minute, right before contracts are exchanged. Sellers often find themselves in a tough spot—they either accept the new, lower offer or face the prospect of the whole deal collapsing. Imagine the stress of having your heart set on your next home and your buyer suddenly saying, “Sorry, I’m dropping my offer by £10,000.”

Don’t mistake this for gazumping, where a seller accepts a higher offer from a new buyer, leaving the original buyer high and dry. In gazundering, the buyer takes advantage, usually in the final hours. While both scenarios are legal, they are equally gut-wrenching and morally questionable for many.

The Impact of Gazundering on Sellers

Let’s be clear: gazundering can leave sellers in a mess financially and emotionally. You’ve spent weeks, maybe months, on this sale—solicitors, estate agents, surveys—only to be hit with a lower offer when you’re ready to sign on the dotted line.

Case in point: Jane, from Bristol, was selling her family home when the buyer knocked £15,000 off their offer hours before the contract exchange. She had already committed to buying her next house, paid deposits, and was emotionally invested. Backed into a corner, Jane had no choice but to accept the lower offer to keep the chain moving. In the end, it wiped out her renovation budget.

Legally, a buyer can do this. No law says they can’t pull the rug from under you at the last minute. However, it’s worth noting that sellers aren’t entirely powerless, and we’ll get into those strategies later.

Why Do Buyers Gazunder?

So, why do people do it? The answer is simple: to save money. Buyers may feel encouraged to renegotiate if the market conditions shift in their favour or the seller is desperate to complete the transaction.

Let’s not ignore that external factors like market volatility, sudden economic changes, or the buyer’s circumstances—like job insecurity or a down-valuation by their mortgage lender—can trigger gazundering.

However, some buyers just see it as an opportunity to squeeze a few extra thousand out of a seller. While it’s not illegal, you have to ask: is it fair? We’ll let you decide.

Legal Considerations for Both Parties

You might be wondering, “Is gazundering even legal?“ The short answer is yes. Until contracts are exchanged, either party can change their mind for whatever reason they choose. Unfortunately, that’s how property transactions work in England and Wales (Scotland has stricter rules). This information will help you feel more informed and prepared for your property transactions.

Reforms to make the process fairer for everyone involved have been discussed. One floating idea is a “lock-in“ agreement, where both parties commit to the sale once an offer is accepted. However, these changes are still far off and remain a topic of debate.

How Sellers Can Protect Themselves

How can you prevent the nightmare scenario of being gazundered if you’re selling? Here are a few tips:

• Vet Your Buyers Thoroughly: Ensure they are serious and financially stable. Ask for proof of funds early on.
• Tighten Timelines: The quicker you exchange contracts, the less time a buyer has to try and reduce their offer.
• Encourage Transparency: Be open about your situation, but don’t reveal desperation.
• Consider Lock-In Agreements: These are rare but can offer some peace of mind if the buyer is willing.

While none of these methods are foolproof, they can reduce the likelihood of a last-minute price drop.

What Buyers Should Consider Before Gazundering

Before you drop your offer at the eleventh hour, think carefully. Gazundering can hurt your reputation. Estate agents and sellers communicate, and pulling such a move could make you less attractive as a buyer in future deals.

There’s also the risk that the seller will reject your lower offer and leave entirely. You might think you’re in a strong position, but you could end up without a home if the seller can afford to lose you.

Ethically speaking, gazundering is a grey area. It’s technically fair game, but do you want to be the buyer known for yanking the chain to save some cash?

Alternatives to Gazundering

If you’re feeling pressure on the financial side or are genuinely worried about market changes, there are alternatives:

• Renegotiate Early: If things change, reopen discussions before the final stage. It’s less likely to damage the relationship.
• Flexible Completion Dates: Ask for more time rather than less money. This can help if your financial situation is in flux.
• Get Financial Advice: If affordability is the issue, it might be worth seeking guidance on your options before slashing the offer.

Conclusion

Gazundering is a murky business, and while it’s becoming more common in today’s volatile market, it’s not something anyone wants to deal with. For sellers, it’s a financial and emotional blow. For buyers, it can be a short-term win with long-term consequences.

So, what’s the best course of action? If you’re selling, take steps to protect yourself early on. If you’re buying, think long and hard before you resort to gazundering. After all, no one wants to get a reputation as the buyer who pulled the rug out from under someone’s feet.

Consulting with legal experts and property professionals is crucial for anyone navigating the property market. And remember, always act in good faith—because in the property world, your reputation often precedes you. This will make you feel responsible and ethical in your property transactions.