What is Gazundering and How to Avoid It – From A Birmingham Estate Agent!

November 28th, 2022

As a seller in today’s world, there are lots of terms to get to grips with. Gazundering and gazumping are just two of the main ones – both of which can cause big problems.

While gazumping mostly affects buyers, gazundering is something that hurts the seller the most and can be extremely frustrating.

If you’re wondering what gazundering is, whether it’s illegal and how you can avoid it when selling your home, here’s everything you need to know about the subject.

What is Gazundering?

Gazundering is when a buyer lowers their offer at the last minute, usually just before you’re about to exchange contracts.

It’s completely different to gazumping, which is when a buyer is outbid at the final hour and a seller accepts. But it’s just as big of a problem. Gazundering can lead to delays in the chain, a loss of money and even a fall through in the sale.

Is Gazundering Illegal?

If the next question you’re asking yourself is ‘Is gazundering even legal?’, unfortunately, yes it’s legal in the UK. The contract for the sale only becomes binding at the point of exchange, so gazundering is allowed by law. But whether it’s ethical is a different matter!

Why Does Gazundering Happen?

There are many reasons why a buyer could offer a lower price at the last minute. It could be for genuine reasons, like the survey showing costly works or they’ve been gazundered themselves and can no longer afford your home.

But it could be for other, less favourable reasons too. Some people gazunder because of a miscalculation in finances, a change of heart, or simply to be sneaky to get a cheaper deal.

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How to Avoid Gazundering

While there’s always a risk of gazundering when selling your home, there are some things you can do to avoid it. Here are Dean Coleman’s top tips on how to avoid gazundering.

1.   Get a Realistic Valuation

One of the best ways to avoid gazundering is to make sure you get a realistic valuation in the first place. If you know about issues with your property, be upfront about them with your estate agent. And don’t worry about losing buyers – there’s a market for everything!

2.   Consider Paying For Survey Issues

Sometimes, you don’t know about issues with your home until the survey. If problems are uncovered, consider whether you’d be prepared to fund the works fully or partially, by doing it yourself or accepting a lower offer. Either of these things could help keep the buyer on your side.

3.   Choose a Good Estate Agent

Choosing a good estate agent is always important. But it could also be the best trick in the book to avoid being gazundered! While an estate agent can’t prevent gazundering entirely, they can help you find a good buyer. They’ll establish how serious a buyer is and won’t pressure anyone into a sale they’re not committed to.

Are You Selling Your Home in Birmingham?

If you’re selling your Birmingham home, make sure you’ve got an expert on your side. Here at Dean Coleman – Bespoke Estate Agent Powered By eXp, our friendly team are here to make the sale of your home go smoothly.

Give us a call on 0758 187 5215 or send us an email at dean.coleman@exp.uk.com for a chat.

Want to know more about Gazundering…click the image below to find out more.

https://deancoleman.exp.uk.com/2022/11/27/tips-to-deal-with-gazumping-in-birmingham/
Tips To Deal With Gazumping In Birmingham

November 27th, 2022

There are few things more frustrating for homebuyers than being gazumped. The chances are you’ll already have spent a great deal of time and money preparing to buy a property, only to have it snatched away from you before exchanging contracts.

If you’re planning to buy a property, here are five tips to help prevent you from being gazumped, and what to do if it does happen to you.

1.   Ask The Seller To Take The House Off The Market

Once you’ve had an offer verbally accepted, it’s worth asking the seller to take the property off the market immediately.

This doesn’t guarantee that you won’t be gazumped, but if the property is no longer on the market it will significantly improve your chances of it not happening.

It’s usually standard practice for a property to be taken off the market once an offer is accepted, and most sellers will be happy to oblige. If they’re not, then it could be a warning sign that they’re still open to a higher offer.

2.   Have a Mortgage In Principle

It’s always a good idea to have funds in place before making an offer on a property as it can help to speed the whole process up, and that’s usually a good thing for buyers and sellers.

If you have your mortgage in principle, it shows the seller that you’re a serious buyer and that you’re able to move relatively quickly, compared to a buyer who hasn’t got the funds in place.

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3.   Have a Conveyancer In Place

As with the mortgage in principle, it’s a good idea to have your conveyancing solicitor in place before starting the buying process.

Again, it can help to speed the whole process up, and it demonstrates to the seller that you’re a serious buyer who’s looking to get things moving as quickly as possible.

Finding a conveyancer that you want to use can be a time-consuming process, so before making an offer on a property, ask friends, family and your estate agent for recommendations, and check reviews so you can find someone you’re happy with.

4.   Get To Know The Seller

Sometimes the personal touch can go a long way. Building a relationship with the seller and showing a genuine interest in their property, along with your future plans for it, may help persuade them not to accept a higher offer in the interests of fairness.

Of course, there are no guarantees, and a higher offer may be more attractive, but having a friendly relationship with the seller can make a big difference.

5.   Ask The Seller To Sign a Lock-In Agreement

A lock-in agreement, or exclusivity agreement is a binding contract that prevents the seller from negotiating with another buyer during a fixed time period.

Both parties will usually pay a deposit, and if either side breaks the agreement then the deposit is forfeited.

This is definitely the best way to avoid being gazumped, but it’s also the least common, and a lot of sellers are likely to be reluctant to sign it. There are still no guarantees either, but as the seller stands to lose a large sum of money through their deposit, it’s arguably the most effective way to prevent gazumping.

How To Deal With Being Gazumped

Despite your best efforts, sometimes being gazumped is an unfortunate and unavoidable part of the home buying process. If this does happen to you, there are a couple of things you may be able to do to stop your purchase falling through.

  • Gazump Your Gazumper!

If you have the funds to go back in with a higher offer this is likely to be your best chance of getting your purchase back on track.

However, make sure you can actually afford to go higher. If your initial offer is at your maximum, or close to it then don’t overstretch yourself financially.

And also be aware that you may end up in a bidding war. The other buyer may have a lot more room to move financially, so you could find yourself paying well over the odds, or being ultimately outbid anyway. Just make sure you have your finances in order before entering into a bidding war.

  • Sell Yourself

This is where being prepared comes in handy. Even if another buyer can come up with a higher offer, you may still be in a stronger position than you think.

For example, if you’re a first-time buyer then you’re chain free and potentially able to move very quickly. Perhaps you’re able to be more flexible with completion dates than the gazumper, or you have your mortgage in place and they don’t. Whatever your USP is, be sure to highlight why you’re an attractive buyer.

Dean Coleman – Bespoke Estate Agent Powered by eXp is your local property expert for the Birmingham area.

Call us on 0758 187 5215 or email dean.coleman@exp.uk.com to find out how we can ensure your sale or purchase runs smoothly.

https://deancoleman.exp.uk.com/2022/05/09/the-conveyancing-process-explained-home-sellers-in-birmingham/
Do I really need a for sale sign when selling my Birmingham home?

October 24th, 2022

Not everyone loves a for sale sign outside their home, and as you venture around Birmingham you will see a variety of property boards, but, as common as they are, not everyone wants to have a for sale sign outside their home. People have a variety of reasons they are not a for sale sign fan – they may not wish for their neighbours to know they wish to move, or potentially risk having random strangers knocking on their door. Yet there are many advantages to having a for sale sign that you may have overlooked, which is why Dean Coleman – Estate Agent Powered By eXp, would like to share with you the value of having a sign when you’re selling your Birmingham home.

Powerful marketing tool

In such a competitive property market like we have been seeing, not just Birmingham but the whole country for the last year or so, one of the most powerful tools we have is the for sale sign. With the advances in technology and a variety of ways to search for property online, over 90% of buyers will begin their search for a new home there. However, not all buyers are actively looking for a home, and we regularly receive calls from potential buyers who have seen a for sale sign outside a property that is of interest.

These buyers may have had their eye on your home for some time, or have fallen in love with the street where you live. Moving has been a niggle and not a impulse, but when they see the house that has caught their attention and been hard to forget, that niggle starts to grow into action and before they know it they are making a call to us.

It starts with a chat

It isn’t only us who are in love with property and know which new properties have come onto the market in our area. Once a board has gone up, it doesn’t go unnoticed. It’s not just friends and family that start to talk about your move, but neighbours and people within your community, as well as passers-by, could spread the word. Word-of-mouth marketing is organic: your home can be mentioned in a chat with a friend, who then mentions it to a neighbour, who then jumps on the internet to have a look. Conversations about property are a valuable way of reaching potential buyers and helping them to find their dream home; you never know, the next conversation could be about yours.

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Can help to sell more quickly

Having a variety of marketing tools including the for sale board can help sell your home more quickly. The more awareness we can create for your property, the more potential buyers we can reach, which in any kind of property market is going to be an advantage. At Dean Coleman – Estate Agent Powered By eXp, we are not in business to list as many homes in the area as possible so that our boards become an eyesore. When we value your home, the figure we present is what we know can be achieved to get your home SOLD. We will always negotiate to get you the highest possible sales price, but no one wants a for sale sign gathering dust outside their property because their house was on the market at an unachievable figure.

It’s a visible marker

Not every property is easy to find, house numbers can often be obscured or missing, street lighting not effective, and streets can feel hidden. You want any potential buyer arriving at a viewing feeling positive and excited, not frustrated and annoyed because they have spent the last 20 minutes struggling to find your home. A for sale sign clearly indicates where your property actually is, making find you for a viewing an easier and calmer experience for buyers.

Is this what you want?

Sometimes, unknowingly, we can put obstacles in our own way to delay or prevent things we are not exactly sure off. If you are against having a for sale sign when selling your home, you need to ask yourself why? Could it be you are not ready to move and, if so, you may find you unwillingly continue to place obstacles during the sales process making the experience not fun for anyone. If you are questioning if you should have a for sale sign, ask yourself, is this move something that I really want?

No one puts Baby in the corner

This famous Dirty Dancing quote is perfect to stress to you that when you are selling your home you want it to be seen, to shine and sparkle in the spotlight. A for sale sign is a wonderful way to make sure that your home receives the attention it deserves, and you could soon be dancing your way to a sale.

If you are ready to sell your Birmingham home, call me on 07581875215, seven days a week.

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