Gazumping, gazanging and gazundering may sound like a fun new tongue twister, however if you hear them when buying or selling a house, it’s highly unlikely you’ll be amused. Buying or selling a house is a stressful experience: a lot of time and effort goes into finding a house you want to buy and securing an offer, or conversely, finding a buyer for your house and accepting an offer, so it’s especially heart-breaking if something out of your control stops the transaction going ahead.
Find out more about each of the terms and what they mean for you below:
- What is gazumping?
- What is gazanging?
- What are you risks as a buyer?
- What is gazundering?
- What are your risks as a seller?
What is gazumping?
Gazumping is the term used when the seller accepts your initial offer on a house yet goes on to accept a higher offer from a different buyer.
What is gazanging?
Gazanging is the term used when a seller decides they no longer want to sell their house at all and pulls out of the house sale last minute.
As a buyer, how are you effected by gazumping and gazanging?
Both terms directly affect the buyer in the chain. Meaning if the seller changes their mind, you could be left with emotional and financial stress. The purchase of a property isn’t legally binding until you have exchanged contracts, and therefore, although unethical, gazumping and gazanging can be done without any repercussions to the seller.
Can you stop being gazumped and gazanged?
Unfortunately, there’s nothing much that can be done when being gazanged, as ultimately if the seller decides they no longer wish to move, they are within their rights to take the property off the market. The same goes for being gazumped, however, to protect your time and financial investment there are a couple of things you can do. You can request the house is taken off the market as a condition of your offer, additionally it’s a good idea not to pay for any searches or surveys until the property is off the market, as your risk of financial loss will be reduced.
What is gazundering?
Unlike the other two terms, gazundering effects the seller in a property transaction. It is the term for when the buyer of your property drops their offer price late into the conveyancing process, just before you’re about to exchange contracts.
As a seller, how are you effected by gazundering?
This can be highly frustrating for sellers as they’ll have to decide if the time and money already contributed towards the sale of the house is worth losing the buyer. It can be an incredibly hard decision, as it’s also not guaranteed you will be able to find another buyer at the same price. If you’re in a chain, the decision could impact whether you’re able to continue with your ongoing purchase, and so it really is a big one to make.
If you’re selling your house and need a conveyancer to act on your behalf, you can get a personalised quote using our online calculator. For help on the conveyancing process, watch our video on how the conveyancing process works.