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Key takeaways:
- Both gazumping and gazundering are legal in England and Wales.
- Timing is crucial - gazumping happens early in the process, whilst gazundering occurs just before exchange.
- The financial impact hits both ways - buyers lose money on fees, while sellers face reduced offers.
- Property chains increase the risk and impact of both practices significantly.
- While neither can be completely prevented, quick progression to exchange and good communication help reduce risks.
Property sales and purchases can take unexpected turns, and two terms often cause confusion and concern: gazumping and gazundering. Put simply, gazumping happens when a seller accepts a higher offer from a new buyer after already accepting yours.
Gazundering is the opposite – it’s when a buyer lowers their offer just before the contract exchange, leaving the seller in a difficult position.
Both scenarios create stress and uncertainty during property transactions – let’s break down the two terms a little more. Understanding them can help you possibly avoid them.
What is gazumping?
Picture this, after months of searching, you’ve found your ideal home. The seller accepts your offer of £300,000, and the conveyancing timeline begins. Three weeks into the process, another buyer views the property and offers £315,000. The seller accepts this higher offer, leaving you back at square one, wasted time, wasted money – this is gazumping.
The practice is particularly common in a seller’s market, where property demand outstrips supply. Rising house prices and competitive urban areas create perfect conditions for gazumping, as buyers compete aggressively for limited properties.
When does gazumping typically happen?
Gazumping most often occurs during the early stages of conveyancing, but it can happen any time before the exchange of contracts. It’s more common in the early stages as the sellers may still have the property on the market, meaning viewings still happen. The likelihood gradually decreases as the conveyancing process progresses, but the risk is still there.
Is gazumping legal?
Gazumping is completely legal in England and Wales. Until contracts are exchanged, no binding agreement exists between buyer and seller - regardless of verbal agreements or accepted offers. While this might feel unfair to buyers, the law allows sellers to accept any offer up until the point of exchange.
Guide: How to make an offer on a house.
What can I do to avoid gazumping?
While neither gazumping nor gazundering can be completely prevented, several steps can reduce the risk. For buyers, moving quickly through the conveyancing process is essential - the faster you reach exchange, the less time there is for other buyers to gazump. Consider taking out homebuyer's insurance to protect against lost fees and ask the seller to take the property off the market once they accept your offer.
What's the impact on buyers?
Being gazumped creates both financial and emotional strain for buyers. The consequences can be far-reaching:
- Lost money and sunk costs: Surveys, conveyancing fees, and mortgage arrangements are typically non-refundable, often amounting to thousands of pounds wasted.
- Time and effort wasted: Weeks of conveyancing progress vanish, forcing a return to property searching and viewing, usually having missed other opportunities.
- Chain complications: For buyers also selling, gazumping can collapse their entire property chain, threatening both their sale and their onward purchase.
- Disruption: Last-minute rental extensions, cancelled moving plans, and disrupted life arrangements add extra stress to an already difficult situation.
Understanding these impacts highlights why taking preventative measures against gazumping is so crucial during the property buying process.
What is gazundering?
Imagine selling your property. A buyer’s offer of £280,000 was accepted two months ago, and the process has been moving forward smoothly. However, the day before the exchange, they suddenly reduced their offer to £260,000. With your onward purchase depending on this sale, and the chain at risk of collapse, you face a difficult choice of whether to continue the sale or not – this is gazundering.
When does gazundering typically happen?
Unlike gazumping, gazundering typically happens at the very end of the conveyancing process, often just days before the planned exchange of contracts. The timing is deliberate – the buyer waits until the seller has invested significant time and money in the process, usually when moving dates are set and the onward property chain is in place. This last-minute pressure creates maximum leverage for the buyer to negotiate a lower price.
Gazundering becomes more prevalent in a buyer’s market, where property prices are falling or stagnant. Economic uncertainty and a declining market may tempt buyers to attempt a last-minute price reduction, knowing sellers may be anxious to complete their sale.
Guide: What’s completion day?
Is gazundering legal?
Like gazumping, gazundering is legal in England and Wales. Buyers can adjust their offer at any point before the contract exchange without breaking any laws. While estate agents and property professionals consider it poor practice, there's nothing legally preventing a buyer from reducing their offer - even at the last minute.
What can I do to avoid gazumping?
Sellers can protect against gazundering by keeping clear records of all property maintenance, having necessary certificates ready, and being upfront about any issues. This transparency reduces the chance of buyers finding reasons to lower their offer later. Building a strong relationship with your buyer through regular communication can also discourage last-minute price reductions.
What’s the impact on sellers?
Gazundering creates a particularly stressful situation for sellers, often forcing them to make difficult decisions under pressure. The consequences can be significant:
- Financial pressure: A sudden price reduction can threaten the seller's ability to proceed with their onward purchase or leave them with a shortfall in their moving costs and next deposit.
- Chain collapse risk: When sellers are part of a property chain, a reduced offer can threaten multiple transactions. This puts immense pressure on the seller to either accept the lower price or risk their entire chain collapsing.
- Time and costs lost: Months of legal work, searches, and preparations may be wasted if the sale falls through, with most of these costs being non-refundable.
- Moving plans disrupted: Schools, jobs, and other life arrangements often depend on completing by a certain date. Gazundering can force sellers to either accept unfavourable terms or face significant disruption to these plans.
The last-minute nature of gazundering often leaves sellers feeling trapped between accepting a lower price or facing the prospect of starting the entire selling process again.
How common are gazumping and gazundering?
While not every buyer or seller experiences them, the risk exists in almost every transaction until contracts are exchanged. Cities and popular areas tend to see more cases of gazumping due to higher property interest, while gazundering often occurs in property chains where completion pressure is highest. And don’t forget, if your buying and selling a property, you could be prone to both.
Location, property type, and price point offer no immunity - these practices can affect any transaction. The simple reality is that until contracts are exchanged, buyers can reduce their offers and sellers can accept higher ones from new buyers. This remains true whether dealing with a studio flat or a country estate.
Frequently asked questions
Can I insist on a holding deposit to prevent gazumping or gazundering?
While holding deposits exist in rental markets, they're rarely used in property sales. Some buyers offer them to show commitment, but sellers generally can't require them, and they don't create a legally binding agreement to complete the sale.
Is gazumping different in new-build properties?
New-build properties often operate differently, with developers typically requiring reservation fees and offering fixed-price agreements. However, until contracts are exchanged, even these arrangements aren't legally binding.
Can estate agents prevent gazumping or gazundering?
Estate agents must act in their client's best interests. For gazumping, they're legally required to pass on all offers to the seller. With gazundering, they can advise against accepting a reduced offer but can't prevent the buyer from making one.
If my survey reveals issues, is this different from gazundering?
Requesting a price reduction based on genuine survey findings differs from gazundering. This is considered legitimate price negotiation, especially if supported by evidence of necessary repairs or structural issues. However, the timing and approach of these negotiations matter - raising concerns immediately after the survey rather than waiting until just before exchange demonstrates good faith.

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