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Converted Lurker

Gazundering..go On Fill Your Boots

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Anyone else struggling to find sympathy for the vendor?

"Could a counter argument be put forward that it is fair and entirely reasonable given that property is overpriced and most vendors expect huge returns on their initial investment for house sitting over recent years?

Further, how moral is it for prices to remain obscenely high indirectly causing misery amongst huge swathes of a generation of first time buyers wanting to exercise the simple option of purchasing their first home?

Similarly agents put no barriers in place to prevent gazumping, if indirectly they have caused the sterile and fragile state of their industry due to the lack of a moral code or intervention, who are they to then bemoan what they consider to be sharp practice?"

http://firstrung.co.uk/articles.asp?pageid...articlekey=1271

Edited by Converted Lurker

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Good stuff, should stir up some discussion.

Unless I missed it I think you missed a prime point though

Gazumping - agents don't give a whatsit, they still get a sale, maybe at a higher price

Gazundering - suddenly the morals come pouring out, nothing at all to do with it jeopardizing their sale and hence commission?

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Good stuff, should stir up some discussion.

Unless I missed it I think you missed a prime point though

Gazumping - agents don't give a whatsit, they still get a sale, maybe at a higher price

Gazundering - suddenly the morals come pouring out, nothing at all to do with it jeopardizing their sale and hence commission?

Good point

http://firstrung.co.uk/articles.asp?pageid...articlekey=1271 ;)

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How come none of you seem to mind about gazundering? I know of several BTL gazunderers (who are buying to let, not gazundering BTL landlords).

I think its to do with the fact that it highlights the current state of the market, buyers know people are desparate to sell so why not do it. If the market was as good as the VIs make it out to be then gazundering wouldnt be here because people would be offering asking price or above. sellers have got away with gazumping for years so its nice to see that the boot is definately on the other foot now.

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How come none of you seem to mind about gazundering? I know of several BTL gazunderers (who are buying to let, not gazundering BTL landlords).

For me it highlights double standards. I`m not advocating it, merely pointing out the bleating hypocrisy of agents who allow and in some extreme cases promote gazumping. Often there can be a legitimate case for lowering initial offers and agents will simply place this in the area of gazundering, for example a poor valuation, or a lower valuation based on certain works that need to take place before mortgage approval. Do not forget in a falling market completion times always get stretched, agents will blame everyone else for this...

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'The body said increased access to information on property prices.....'

Thank you houseprices.co.uk etc. Looks like buyers are getting really savvy now they aware of these websites and using them as a tool in their research. Word must be getting round.

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I think there are two kinds of gazundering

(1) Buyer makes a higher offer in order to secure the sale, knowing full well at that time that when the documents are ready, they will change the offer to a lower amount and have a good chance of getting the money off.

(2) Buyer makes the higher offer in good faith, offer is accepted, then later on the buyer gets cold feet concerning the risk level they are about to take on, due to lots of bearish HPC-esque news coming in. Mitigates the risk by changing the offer at the last minute.

Obviously it's impossible to distinguish between the two with telepathically reading their intentions. However, I find it hard to criticize the ethics of the buyer in the second case. After all, they are merely pulling out of the deal (which cannot really be criticized) then re-bidding for the property at a different figure.

One would expect more "type (1)" gazundering in a rising market, because competition between buyers is an incentive to offer more to secure the deal. In a falling market, where there is less competition between buyers and lots of bearish news, I would guess gazunderers would be more "type (2)".

frugalista

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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