Gazundering Is Back

[Warwickshire Lad]

All is fair in war.

I reckon Buyers should work the system for all its worth.

<{POST_SNAPBACK}>

I agree that buyers should drive a very hard bargain in the current market, but I still say that gazundering is wrong, and that's that.

Currently I do not say anything about it on FTBH but will be sure to add a section about it at some point.

Edited May 25, 2005 by warks_lad

[JonoP]

Ha ha ha,

Great site - bring it on!!!

I work for a large IT company - we hardly ever sign a deal that is not 're-negotiated' at the last moment a day or so before signing. This is market forces, supply demand etc.

It is all very well saying 'my word is my bond', but that is an expensive statement when it could cost you £40K by NOT gazundering.

If the market was not screwed in the first place it would not work - the only reason it is happening is because of all the greedy people overpricing in the first place. Live by the sword etc........

[slater14]

Ha ha ha,

Great site - bring it on!!!

I work for a large IT company - we hardly ever sign a deal that is not 're-negotiated' at the last moment a day or so before signing. This is market forces, supply demand etc.

It is all very well saying 'my word is my bond', but that is an expensive statement when it could cost you £40K by NOT gazundering.

If the market was not screwed in the first place it would not work - the only reason it is happening is because of all the greedy people overpricing in the first place. Live by the sword etc........

<{POST_SNAPBACK}>

In what way could my word cost me 40k? I would simply offer 40k less to begin with. Then everyone knows exactly where they stand.

If you can show me the "person" who started this bubble I will personally go and kick them in the head. You cant because bubbles are not driven by one person or one factor.

To be thinking of buying property now is stupid and to tell people to go and put in "fake" offers on houses is disgusting. How does that help ftb'ers? it merely holds out false hope to the seller that their price is "fair" and that they just got an unlucky buyer who couldnt complete - it PROLONGS the bubble.

When prices do fall by 50% there will still be people who cannot afford to buy a 10 bed mansion even with a 50% correction - should they then go and put in "fake" offers because they cant afford to buy it?

This site just stinks of jealousy these people are the sort that will be the next herd of BTL'ers jealous little toads who "missed the boat" and feel agrieved.....not unlike some urchin scratching a Rolls Royce because huh, I havent got one.

dispicable small minded jelaous petty little people - all IMHO of course.

[refusnik]

All is fair in war.

Wars are won by those who have principles and faith.

Anyway, people don't change their beliefs after they hit their early 20's...

[Bee Bear]

If you don't want to keep renting, consider making an offer on 2 or 3 properties at the same time (but through different estate agents). Gazunder them all at the last minute, and you know at least one will give in to you.

I would really like to say that i think these are a horrible bunch of people. But i have a sneaking admiration for the audacity of the above statement. I don't like it in principle and would hope i would never do. Still, the last time we tried to buy our 1st house we got gazumped by greedy vendors. We told them to "place it where the sun does not shine."

I guess if i was really sick of renting and had a family to consider i might consider the above. Pretty awful to realise how despicable i can be.

Probably more info that you all wanted to know

[ItsPriceyUpNorth]

Putting aside the moral issues, I'm not sure this would often be a good strategy in that I don't think you'd get much of a discount. Most vendors are buying another place and need the cash from the sale to finance it. It's likely they've made plans based on the agreed price.If you try and drop the price by a significant amount at the last minute they simply cannot continue with the deal.

So, I can see how you could take £5k off a price, but I don't see how it would work to get a 20% discount.

As an aside, I've experienced the gazumper a few years back - I was asked for an extra £10k 3 days before we were due to exchange. It really really annoyed me so I agreed to the new terms and then pulled out on the day we were due to exchange.

[newbie]

As an aside, I've experienced the gazumper a few years back - I was asked for an extra £10k 3 days before we were due to exchange. It really really annoyed me so I agreed to the new terms and then pulled out on the day we were due to exchange.

<{POST_SNAPBACK}>

That's quite cool. I'd use the same tactic if gazumped, agree and then pull out.

Generally speaking, I think a system that allows this sort of thing is the problem. What's wrong with conditional contracts?!?!

Having said that, I think that what's been done on the way up, can also be done on the way down.

[Sparker]

There's nothing morally wrong with gazundering provided it's done for the right reasons.

Putting offers in on three properties with the specific intention of gazundering all three to get the best price is clearly going to upset a lot of people so could be said to be morally wrong.

However, realising that that value of the property you made an offer on 2 months ago has gone down, then I think you would be mad not to renegotiate.

Edited May 26, 2005 by Sparker

[SHERWICK]

There's nothing morally wrong with gazundering provided it's done for the right reasons.

<{POST_SNAPBACK}>

Think of it this way. You walk into Comet and they have a great TV for £500. You don't have the money on you so you say to the salesman, yes, I'll buy that for £500. You come back with the cash an hour later, and it's now on sale for £450. Why on earth would you pay the £500 that you gave your word on before?

If something has gone down in price from me making my initial offer, I'm paying less, whatever it is.

[Guest rigsby II]

Think of it this way. You walk into Comet and they have a great TV for £500. You don't have the money on you so you say to the salesman, yes, I'll buy that for £500. You come back with the cash an hour later, and it's now on sale for £450. Why on earth would you pay the £500 that you gave your word on before?

If something has gone down in price from me making my initial offer, I'm paying less, whatever it is.

<{POST_SNAPBACK}>

If you have your head screwed on then you will have had a house survey done and will have had searches etc done by your solicitor already incurring costs.

So to use your analogy, you would have already put down a £100 deposit on the telly. You come back and say stuff it to the salesman, and all they do is pocket the non-refundable deposit.

To also accept 2 or 3 offers, like someone else has said, and then gazunder them all at the last minute, you would lose 2 or 3 survey and solicitor costs if the vendors decide not to be blackmailed.

Its a dangerous and expensive strategy that one.

Even putting in low offers and having it accepted is dangerous, I once did that, and after I had forked out 2 or 3 hundred quid, he said I was taking the p*ss, and tore up my offer - theres absolutely nothing you can do about it either.

[Scarecrow]

I don't understand why the English system doesn't change and follow the Scottish system. Here, you would not be allowed to gazump or gazunder, as the offer is pretty much set in stone very quickly. We don't all have to rely on a chain either - it is a crazy situation down south, which allows people to get away with it.

[newbie]

Think of it this way. You walk into Comet and they have a great TV for £500. You don't have the money on you so you say to the salesman, yes, I'll buy that for £500. You come back with the cash an hour later, and it's now on sale for £450. Why on earth would you pay the £500 that you gave your word on before?

If something has gone down in price from me making my initial offer, I'm paying less, whatever it is.

<{POST_SNAPBACK}>

But in that case you'd have entered a binding oral contract to buy the telly for £500. So you'd be bound to cough it up if they could prove it.

The difference with house sales is that a contract to buy land has to be in writing.

[Scarecrow]

But in that case you'd have entered a binding oral contract to buy the telly for £500.  So you'd be bound to cough it up if they could prove it.

The difference with house sales is that a contract to buy land has to be in writing.

<{POST_SNAPBACK}>

I think that contract should be signed much quicker than it is at present - in Scotland it usually only takes a couple of weeks to view, survey, put an offer in and have it legally binding.

Edited May 26, 2005 by Scarecrow

[DEATH]

I would think it would be best not to anger people who still have access to your "future home".

What's to stop them going in each room and pissing on the wall etc, to get back at you.

Who here would do stuff like that if they got gazzed?

D

[theChuz]

I would think it would be best not to anger people who still have access to your "future home".

What's to stop them going in each room and pissing on the wall etc, to get back at you.

Who here would do stuff like that if they got gazzed?

D

<{POST_SNAPBACK}>

I would get a battery powerd freezer and put fish and feaces in it then slip it under the floor boards.

Battery lasts 2-3 weeks then what a stink.

Would also scratch thier cars and break the odd window until i felt i had reclaimed the money with a little interest.

Anyone wanna buy my house?

[Cityfool]

I would think it would be best not to anger people who still have access to your "future home".

What's to stop them going in each room and pissing on the wall etc, to get back at you.

Who here would do stuff like that if they got gazzed?

D

<{POST_SNAPBACK}>

The replies to requisitions that they make for one and the huge forms they have to fill out about the condition of the property.

In a weak market modest gazzundering will often work as people are locked in chains and if it comes from the bottom it is often possible to spread the cost up the chain.

Wouldn't do it myself partly as I would feel too bad about it and partly because because as an FTB without a huge deposit the risk of losing a couple of grand to costs if it didn't work is offputting.

[NotDavidIcke]

This is what you should do if someone tries to gazunder you...

[martha]

This is what you should do if someone tries to gazunder you...

<{POST_SNAPBACK}>

You all talk big - but look at the reality.

Gazumping has been rampant for the last 5 - 8 years. No first time buyer has gone and done any of these evil things with dead fish or machine guns in response to gazumping. So in a buyers market, why are sellers going to behave any differently when gazundered? Our train companies f*** us over every day with no seats, long delays and high prices, but we don't abuse them like this.

It's one thing to sit behind your computer and talk hypothetically about what you would do. But just imagine yourself in the role of vendor or buyer:

vendor: I'm just hours away from exchange of contracts. If I put the house back on the market now, it will take me another 2 months or maybe 3 or 4 and because the market is falling I won't get any more money anyway - if I accept the gazunder offer (or even agree to a partial gazunder, say 50% of what the buyer wants), then the deal is done today and I can relax.

buyer: 10,000 is a lot of money. I don't know whether this is ethical, but it might work. I've paid 150 quid for the survey and my solicitor has agreed to charge no more than 50 quid if the deal falls through for any reason (quite a few solicitors will offer you terms like this), so I risk 200 quid for a possible gain of 10,000 + interest that I will save.

[ftbSean]

"Who you calling a big talker"

Fair point. The vendors made warm beds when the gazumpers were in town, sharing their dosh-a-doodle-doo.