Buying or selling a property can feel like a high-stakes emotional and financial rollercoaster and two practices in particular tend to heighten the anxiety: gazumping and gazundering. Both occur late in the transaction process and can significantly alter the agreed price, often leaving one party feeling blindsided. Understanding how these practices work is essential for anyone navigating the property market.
Gazumping happens when a seller accepts a higher offer from a new buyer after already agreeing (verbally) to sell to someone else. This often occurs in competitive or rising markets, where demand outstrips supply and sellers are tempted by better financial terms. While legal in many jurisdictions, gazumping can cause buyers to lose survey fees, legal costs, and valuable time.
On the other hand, gazundering occurs when a buyer lowers their offer just before contracts are exchanged, typically after surveys or searches have been completed. Buyers may justify this by pointing to newly discovered issues or changing market conditions. For sellers however, gazundering can feel like unfair pressure especially when they are close to completion and may already be financially committed elsewhere.
Both practices introduce uncertainty and mistrust into property transactions. Because agreements are often non-binding until contracts are exchanged, buyers and sellers remain vulnerable during the negotiation period. This legal gap creates space for last minute renegotiations that can destabilize even well advanced deals.
The risks of gazumping and gazundering are not purely financial; they also carry emotional costs. Buyers may experience stress, disappointment, and frustration after investing time and hope into a property. Sellers meanwhile, may feel manipulated or forced into accepting less favorable terms to avoid starting the process again.
There are ways to reduce exposure to these risks. Buyers can move quickly with surveys and legal checks, request exclusivity agreements, or ensure their finances are fully in order to strengthen their position. Sellers can set clear timelines, choose buyers carefully and be transparent about expectations to minimize surprises late in the process.
Ultimately, gazumping and gazundering highlight the importance of preparation, communication, and professional advice in property transactions. While neither practice can be completely eliminated under current systems, awareness and proactive planning can help buyers and sellers protect their interests and navigate the process with greater confidence.
