Monday, October 11, 2010

Ah diddums!

Gazundering back as house prices tumble

Up to 25% of purchasers are attempting to renegotiate the price downwards at the last minute... Andrew Montlake, of mortgage broker Coreco, said gazundering was rife because of the current market conditions. 'We work very closely with agents and a number of them have reported a rise in the number of cases of gazundering in recent months,' he said. 'Buyers know that they hold all the cards at the moment so the conditions for gazundering are ideal. For sellers, of course, this type of activity causes considerable difficulties and distress.'

Posted by mark wadsworth @ 10:44 AM (2418 views)
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10 thoughts on “Ah diddums!

  • I bought a house recently* and I had absolutely no qualms about gazundering and saved myself a few grand in the process. After all, the seller would have dropped my offer in an instant if he’d got a better one, so why should I behave differently?

    —-
    * I know, I know, prices are likely to fall steeply soon. But I bought a home, not an investment, and it fitted my current circumstances.

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  • Would it be resonable to assume that there will be as much gazundering on the way down, as there was gazumping on the way up?

    Frankly both seem slimey to me. An extreme offer in the first place is different to agreeing something and then trying to stretch it. Oh, and blaming it on the estate agents is not an excuse I will try to hide behind.

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  • Would it not be reasonable to agree a price on the understanding that contracts are exchanged within 2 months? If it takes longer the price alters to match the rate of increase/decrease.

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  • mark wadsworth says:

    I was once gazundered (to the tune of £500, so fair enough) but I’ve never been gazumped AFAIAA.

    But it once happened to me that negotiations had dragged on for so long that the vendor hiked the price by £2,000 (again, fair enough it was a rising market at the time). I blame the solicitor who spent SIX months writing to the wrong address to get hold of insurance details.

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  • mark wadsworth says:

    And what I want to know is what to we call this latter practice – “Gazupping”?

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  • Just driven past a house near me which has been on the market for almost 2 years. It now says Sold – similar required. You gotta love their optimism. And this is about the 5th time it’s “sold”.

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  • mark wadsworth says:

    Timmy 6, methinks you misread that sign the previous four times it went up.

    What it actually said was “Sold – identical house in identical location required” and hey presto, guess which house went back on the market a month later?

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  • Good.

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  • This is great stuff. Comments on the article are entertaining. Quite a bit of thou-shalt-not gazunder… wonder if these thoughts are consistent with their attitude to gazumping during the so-called ‘good times’??

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