If you’ve had an offer accepted recently - are you tempted to gazunder?

[Amtheyest17]

Hello,

If you’ve had an offer accepted recently - have you or are you tempted to gazunder because of market conditions?

With the volatility in the market and house prices coming down. Obviously there is a concern that you could be overpaying for something

Anyone planning to or tempted? I know it’s a shitty thing to do. Not saying we will but we keep coming up against hurdles because of the market and we are starting to consider changing our offer as market conditions are really squeezing us now.

No. My previous buyer tried this and I refused to be bullied into lowering the price. I now have a buyer with exchange imminent at a higher price anyway. I am not in a rush and have no chain so will not be messed around by buyers.

As other posters have said, I'm on the ethical side of purchasing/selling. An offer is agreed and thats the price unless the survey shows otherwise I'm not changing a thing and if the chain collapses so be it. another house will always come up.

Yes prices are dropping right now and rates going up but long term property always bounces back so trying to haggle as price between offering and exchange has changed is a BS argument. Would those supporting this process be happy to pay more in a rising market if house prices went up 15k between agreed price and exchange if the vendor tried to gazump them?

So the reason why it’s crossed my mind is due to the rising rates our affordability isn’t as good and there’s a mortgage shortfall that we have had to borrow cash to plug. We honestly thought we would have no issues with the mortgage and neither did our broker! Also, it’s completely our fault but we are dealing with really awful EA’s who pushed our offer up from what we initially wanted to pay for the house - I think there’s a bit of hurt pride there that may be clouding my judgment.

I think this is fair - it’s an absolute tight rope of a transaction and still a couple of hurdles to get over before we’re on the home stretch. It really is our dream home and If the market was how it was 6-12 months ago there would’ve been no point in us even looking at it as we wouldn’t have got a look in but because of market conditions it’s just within grasp at a little push (and the high chance of complete financial ruin).

This whole thread came about because two friends sent articles today about house prices and said you should consider reducing your offer. So it’s made me panic.

I would tbh, been gazumped so many times. Strangely people are more accepting of that though!

I wouldn't wait till exchange though so technically not gazundering

tbf to the op we really are in uncharted waters

Talking about seeing the opposite behaviour in a rising market, plenty of sellers did this during the covid craziness.

yep & no complaints then!

I think in this case you need to consider 2 things. Firstly, how long the property was on the market for and how likely it is to sell quickly again. Secondly, how gutted you'd be if you lost it.

I think it's perfectly normal to get cold feet at this stage. Often you get carried away, desperate to secure a property, then once you do, reality sets in and you start wondering if you've overpaid or could have got it cheaper. If you really love the house though, sometimes it's just best to take the hit rather than risk losing it.

I did this. Offered asking, mortgage rates were pulled, I went back with a lower offer, fully expecting them to decline but they accepted, I was prepared to walk away,

Assume what you like .

We were gazundered by a pair of immoral bastards in 2022.

Won't bore you with how, but we were very nearly made homeless because of their reckless greed.

I prefer to live my life as a decent human being. There is no situation in which I'd attempt to screw anyone over.

There definitely were plenty of complaints!

Very unhappy, but that's how the process works. It's a commercial transaction with clear rules. I think the correct ethical approach is to play by the rules.

If you introduce other rules which restrict your room for maneuver you will be tactically disadvantaging yourself (although it might be worthwhile for you if your conscience is more important than the money).

And if you expect others in the process to play by your voluntary rules then you have to accept that you may be disappointed.

Obviously this is laudable but it puts you a disadvantage in an environment where everyone else is very happy to screw YOU over.
In my opinion we need better rules governing the house buying process in the UK, there are too many opportunities to take the piss and the piss will be taken when there are large amounts of money at stake.

There aren't really.

The bottom line is that an offer is not binding until people sign contracts. How could it be otherwise ? At some point you need to make a commitment.

If people believe or plan their lives around something being a certainty before a proper legal agreement is made, then it's their problem.

I don't believe there are any alternative systems that are any better. At some point you have to make a commitment, and at that point the offer is binding and it's hard to get round that process.

There definitely were plenty of complaints!

from the sellers?!

Absolutely not. If you’ve offered a price you need to make sure you can afford it. I think offers should be binding, like they are many places.

Just so everyone knows, someone tried to this to me a few years ago.

I just told them to do one.

Our agent called saying they were very upset because they have spent lots on surveys etc...

I said 'good' and found another buyer a few days later.

Don't be an idiot. Honour your agreement.

So you make an offer. And the place turns out to be built over a mineshaft.

Or the searches reveal a giant landfill is going to be built at the end of the road.

Should the offer still be binding ?

This is why its an offer. It's an offer subject to contract. And subject to the house having no hidden "benefits" that are easily revealed, and that are more often than not concealed by the seller.

I'm in the process of renegotiating my offer - and am asking for a sizeable decrease due to the survey. The estate agent is trying to convince me to stay at my original offer so I've said I'm happy to walk if they won't enter into a conversation. I'm the 3rd buyer who has got to this stage with this property so clearly they know there are problems with it!

Is this gazundering? Not really in the traditional sense but sellers need to recognise nothing is set in stone until the purchase is completed and sadly people getting buyers remorse or the survey flagging problems is very common.

Maybe worth adding that sellers who really want to make sure that the buyer is tied into their agreed price can achieve that by using a contract race.

Basically you let people view, provide them with whatever information they want, conduct surveys etc. But you don't take anyone very seriously or give anyone an exclusive opportunity until they name a price and sign on the dotted line at which point a binding contract is formed.

No. As I said, any issues not identical on viewing -structural work, damp, rot etc then negotiate.

leaving it til the last minute and trying to renegotiate hoping the sellers are too far down the chain, or don’t want to spend another 6 months going through the process, that’s shitty.

we planned to exchange this month, but the sellers are still trying to renegotiate. Nothing important, just general condition of the house which you could see on viewing it’s not been touched since the 80’s so will need some modernising.

*buyers!

• identifiable!

There's lots of alternatives - like auctions for example.