The news is forever reporting rising and fluctuating house prices; one day it will be a prime time for house buyers to get on the property ladder, but on another it could be a completely different story.
In these uncertain times, you should be very aware of Gazumping, Gazundering and more recently, Gazanging, rearing their ugly heads.
They may have funny names, but you certainly won’t be laughing if any of them happen to you.
What is Gazumping?
Gazumping occurs when a Seller refuses (normally at the last minute) to authorise his or her Conveyancing Solicitor to exchange contracts on their property.
Their reason for doing this is normally because they have found a Buyer willing to pay a higher price for the property.
Due to the housing market at the moment (more buyers than there are houses), gazumping is an ever present, niggling problem.
Whether or not you consider Gazumping to be a rather dastardly ploy, it inevitably ends in disappointment for the original Buyer, who after paying out for local searches, surveys and other expenses, will be considerably out of pocket.
Legally, an unsuccessful Buyer cannot force a sale, as an offer to buy land in England and Wales is not legally binding unless it is evidenced in writing; so unfortunately, they don’t have a leg to stand on.
What is Gazundering?
Gazundering is the reverse of Gazumping, and equally as frustrating. This is when a buyer decides to significantly reduce their offer just before exchanging contracts, leaving the seller with the difficult decision of whether to accept the offer or risk the deal falling through.
And the new-fangled Gazanging?
Although not a new concept, Gazanging was in full-force in 2011 when the market was considerably more uncertain and sellers were particularly lacking in confidence.
Gazanging is a term coined by In-Deed, and occurs when a seller decides against selling the property at all and leaves the buyer “hanging”.
Within the first six months of 2011, it was estimated that around 54,000 buyers were gazanged, leaving them rather frustrated and short on cash.
What can be done to avoid any of it in the first place?
As a general note though, maintain communication with your Conveyancer, as they are there to ensure you achieve a stress-free move.
If you want more home-moving advice like this, why not give our free First-Bites E-Book a try?