How we protect Swindon Homeowners from Gazundering

Estate Agents, unfortunately, tend to rank low in terms of public trust and reputation – something that here at The House Group, we truly try our best to turn on its head. The peculiarity of both gazumping and gazundering, however, is that they are driven by individual buyers and sellers, not estate agents.

People might tell themselves that agents encourage gazumping because it means earning a higher fee, but that is a misconception.

Admittedly, our job is to achieve the best price for people selling their property in Swindon, but gazumping is definitely not what we encourage to achieve that.

Firstly, if a higher offer is accepted, it means starting the legal process all over again, and that takes weeks.

Secondly, whilst it is technically true that estate agents will earn a higher fee if the sale price increases, realistically, that extra 1-2% of fee earned on an extra £10,000, £20,000, or even £50,000 of sale price is not enough to move an agent’s needle. It’s a few hundred pounds – nice to have, but not nice enough to be worth the reputational risk and human hurt.

And thirdly? Frankly, anyone can reduce their offer at any time, so who is to say the higher gazumping offer will remain the same by the time the sale is ready to go through?

And that brings us neatly to gazundering – gazumping’s less well-known sibling.

Gazundering: the bane of a buyer’s market

Gazundering, in simple terms, is the act of renegotiating an agreed price by lowering their offer on a property after the sale has been agreed, often just before exchange, to pressure the seller into accepting less.

It can happen at any point, but the problems arise when it occurs towards the end of a transaction – especially if it is approaching exchange of contracts (or even on the day of exchange itself).

Sellers can feel so held to ransom and helpless to do anything else that they agree.

And it is gazundering, rather than gazumping, that might be about to make its way into headlines you will see.

In a recent property industry article, Osbornes Law, a London-based law firm, claimed that gazundering is becoming more common again, given the current softer state of the market, with buyers attempting late-stage price reductions, often citing surveys or wider uncertainty just before exchange.

Staggeringly, their claim is that this now affects 90% of transactions.

Sure enough, with a figure like this quoted, it was only a matter of weeks before it made its way from the pages of the property industry press to major publications such as The Times and the Standard, where members of the public, rather than just estate agents, would see it.

Of course, it’s a narrative that is bound to get attention, and potentially cause concern.
But it is not one we recognise ourselves in our day-to-day work.

This doesn’t mean gazundering never happens. It does.
But it is far less common than those headlines imply – and, crucially, it’s rarely a surprise in well-managed transactions.

What we’re actually seeing on the ground

Locally, here in Swindon, we see our own agreed prices overwhelmingly honoured through to exchange. Most buyers act in good faith, and most transactions progress exactly as they should.

That 90% figure is just not one we recognise personally, at least not here in Wiltshire – so that is the first thing to reassure you about if you are thinking of selling your home in Swindon.

When we do see renegotiation on our own sales, it is usually less a case of gazundering and more likely due to unforeseeable issues raised by surveys – and this will be in less than 50% of sales.

In those cases, where a buyer is looking at an unexpected financial loss to set things right, there might be a conversation to be had and a decision to be made – and that, realistically, is good estate agency.

That said, gazundering in the form described earlier – a deliberate act to lower the purchase price during a vulnerable moment for the seller – isn’t unheard of in the industry (or it wouldn’t have a name at all).

Where issues do arise in general estate agency, rather than here at The House Group, they tend not to come out of nowhere. They are usually the result of:

• unclear expectations early on
• slow or fragmented communication
• a deliberate lack of disclosure up front
• a lack of active oversight once a sale is agreed

In other words, gazundering isn’t often a market problem.
It’s a process problem.

And good estate agents plan for it.

How we protect people from gazundering in Swindon

Our approach is built around some simple principles:

• Honesty and transparency, not swagger and complacency
• Prevention beats reaction
• Communication is key
   

Here’s what it looks like in practice.

1. Structure from the start
We outline our expectations by setting out clear milestones early in the process: surveys, mortgage offers, the stages we expect to reach in the legal process, etc. It means that everyone understands what ‘good progress’ actually looks like. Structured deals are harder to derail late on, especially once the buyer is engaged and financially committed (i.e. with ‘skin in the game’).

2. Transparency from the start 
If there are problems with the property, we want to be clear about them from the start – at the point of listing and during viewings, not when the offer comes in. If that is a 20-year-old flat roof and it's high time it was replaced, we will broadcast that.

It means the buyer has that information to consider when making their decision about what to offer. If a survey later says, ‘the flat roof needs replacing’, the buyer has no grounds to come back and ask for money off as a result. But usually, they won’t feel the need to, either. They appreciated the honesty in the first place, and they aren’t surprised that the surveyor has confirmed what we told them.

3. Active sales progression
We don’t wait for issues to land in our inbox. Regular contact with solicitors, brokers and buyers allows us to spot potential friction early, while there’s still room to resolve it.

4. Open, transparent communication
Sellers are kept informed throughout. Not just when something goes wrong, but as a matter of course. It avoids rushed decisions and removes unnecessary pressure.

We ask the buyers uncomfortable questions. We’re human, so we know life can get in the way, but we are also professionals, and we have a job to do to see a transaction through its core phases.

If we feel a buyer is hiding, making excuses or manufacturing problems or delays, that is a warning sign we will discuss with our sellers straight away. We won’t leave things to chance.

5. Ongoing market awareness
We keep a close eye on market sentiment and local conditions during the transaction, not just at the valuation stage. If the mood of the market shifts, we’ll be aware and advise accordingly.

6. Sensible contingency planning
We maintain contact with previously interested parties. It is not to create uncertainty, but to ensure our sellers are never left exposed if circumstances change, if we can help it. If a buyer does try to reduce the agreed price without justification, knowing we have other interested parties on hand is a huge advantage in that negotiation.

The bottom line

Gazundering makes for dramatic headlines – but it remains unlikely in well-managed transactions.

If it does rear its ugly head, our sellers aren’t left exposed or scrambling.

We have a clear plan and are there to offer informed advice. We don’t want anyone to lose money, but we also sometimes help sellers see the full picture.

A bad roof revealed in a survey, that will cost £40,000 to fix? The seller didn’t know, we couldn’t have known, but after a survey the buyer, the seller, and we do all know.

So, do we truly think it is still worth the same price? If we do, then fine – let’s dig our heels in.

But if we don’t, and given the need to disclose it to any future buyers, should we not consider this new offer on its merits?

An attempt to renegotiate due to genuine new information from a survey is not, realistically, true gazundering.

Gazundering, in the shape that sellers really worry about, is the deliberate attempt to reduce an agreed purchase price unfairly, at the stage that a seller is feeling pressure. This is why it is important to be open about issues before the offer comes in, be clear on target milestones from the outset, be in constant contact during the transaction to spot red flags, and to maintain contact with other potential buyers who could offer a safety net if gazundering is attempted.

When it comes to selling homes, the course is rarely smooth – but this sort of scenario can be just a bump in the road, not a roadblock. Nevertheless, it pays to give yourself the best chance to avoid it.

Our best advice? Always work with an estate agent who can reassure you that they have robust processes and a plan in place. Just like we do.