What is gazundering?
What you say after someone sneezes? It is rather a funny word that has a meaning that is anything but. Gazundering is an underhanded, unethical – but unfortunately not illegal – technique used by some quick house buyer companies. What is it, and how can you protect yourself as you navigate the sale of your home?
What is Gazundering?
A bit like a ‘bait and switch,’ gazundering involves extending an initial offer to a homeowner and then dropping the price after a sale has been agreed upon. For example, let’s say that a house buyer offers you £150,000 for your house. If you put it on the market with an estate agent, you may be able to get £200,000 – but you factor in the cost of agent fees, solicitor fees, repairs, renovations, valuations, staging, waiting etc., and decide it is more beneficial for you to accept this offer.
You have been promised a fast sale and you are looking forward to these funds in your account, so you accept the offer.
Then ‘all of a sudden’ the cash buyer informs you that for X, Y and Z reasons, they cannot possibly buy it for more than …