Gazundering - the new property craze

Gazundering is back

The recent down-turn in the property market is revealing some of the steps buyers will go to, to get the property they desire.

One property owner has told me she was asked by her purchasers to drop by £7,000 on the day of exchange of contracts and risk the loss of the sale, which she did - so now the property is back on the market.  Unfortunately this caused a great deal of stress for the owner as she had already packed up and was ready to go.

Unbelievably, builders are now themselves being hit by this menace - where buyers are gazundering after they’ve exchanged contracts.  People who’ve bought newly built homes are threatening to walk away at the last minute, losing their deposit in the process, but perhaps saving themselves from the threat of negative equity further down the line.  When buying off-plan, you may have to wait 2 years before the property is built, a time when you are looking for appreciation in the capital value of the property.

This is an unusual case because if you withdraw after exchange of contracts not only do you lose your deposit but could also end up in court for breach of contract.

Are you a victim or a perpetrator of gazundering?  Tell us your story.