What is gazundering?
What you say after someone sneezes? It is rather a funny word that has a meaning that is anything but. Gazundering is an underhandedhttps://www.property-net-malaga.com unethical – but unfortunately not illegal – technique used by some quick house buyer companies. What is ithttps://www.property-net-malaga.com and how can you protect yourself as you navigate the sale of your home?
What is Gazundering?
A bit like a ‘bait and switchhttps://www.property-net-malaga.com’ gazundering involves extending an initial offer to a homeowner and then dropping the price after a sale has been agreed upon. For examplehttps://www.property-net-malaga.com let’s say that a house buyer offers you £150https://www.property-net-malaga.com000 for your house. If you put it on the market with an estate agenthttps://www.property-net-malaga.com you may be able to get £200https://www.property-net-malaga.com000 – but you factor in the cost of agent feeshttps://www.property-net-malaga.com solicitor feeshttps://www.property-net-malaga.com repairshttps://www.property-net-malaga.com renovationshttps://www.property-net-malaga.com valuationshttps://www.property-net-malaga.com staginghttps://www.property-net-malaga.com waiting etc.https://www.property-net-malaga.com and decide it is more beneficial for you to accept this offer.
You have been promised a fast sale and you are looking forward to these funds in your accounthttps://www.property-net-malaga.com so you accept the offer.
Then ‘all of a sudden’ the cash buyer informs you that for Xhttps://www.property-net-malaga.com Y and Z reasonshttps://www.property-net-malaga.com they cannot possibly buy it for more than £110https://www.property-net-malaga.com000.
What Do You Do?
In many cases people accept the lower offer. They have already invested this time and effort into selling their house and working with this company. They do not want to go back to square one and start all over again.
Do not forget that many times people are in a vulnerable situation. They need to sell quickly to avoid repossessionhttps://www.property-net-malaga.com to cover the cost of a down payment on a new househttps://www.property-net-malaga.com to relocatehttps://www.property-net-malaga.com to pay for other expenses… The list goes on and on. And… because they are in this positionhttps://www.property-net-malaga.com they agree to what is nearly half of what they could get on the market if they had the luxury of waiting.
Unscrupulous house buyer companies know this and engage gazundering as a strategic technique. They did not ‘all of a sudden’ realise that the property was worth less; they planned on changing their offer from the beginning. This is usually pre planned and pre orchestrated. By keeping you on the hookhttps://www.property-net-malaga.com so to speakhttps://www.property-net-malaga.com for weekshttps://www.property-net-malaga.com they plan on you essentially being forced into the agreement.
Againhttps://www.property-net-malaga.com while completely and egregiously unethicalhttps://www.property-net-malaga.com not to mention dirtyhttps://www.property-net-malaga.com gazundering is not illegal. There aren’t any explicit laws protecting those who have been in this situation. Unfortunately they are left between the proverbial rock and a hard place.
So then it is up to us to protect ourselves. What can you do to avoid gazundering?
7 Steps to Avoid Being the Victim of Gazundering
In our book even if gazundering is not illegalhttps://www.property-net-malaga.com a house buyer who subjects homeowners to this situation is undoubtedly victimising them in a sense. When considering using a quick sale company:
- Research the House Buyer Thoroughly.
Put on your sleuth hat and do some investigatinghttps://www.property-net-malaga.com starting with the buyer’s website. Is it professionalhttps://www.property-net-malaga.com well designed and easy to navigate? Complete with contact detailshttps://www.property-net-malaga.com including a physical address and working phone number? Does it contain company registration details? Is there clear information regarding their terms of businesshttps://www.property-net-malaga.com procedures and code of ethics? Do they offer resources relating to the quick house sale processhttps://www.property-net-malaga.com FAQs and other relevant content?
- Look at Reviews. Thanks to the internethttps://www.property-net-malaga.com we can search for reviews for virtually every producthttps://www.property-net-malaga.com service and company. Take the time to play Google Detective and see what your peers are saying about this house buying company. If the reviews are negativehttps://www.property-net-malaga.com it is a clear red flag – but be equally cautious about reviews that seem too good.
- Ask the Right Questions – and Demand Proof.
For example:
- How long have you been in business?
- Are you a member of The Property Ombudsmanhttps://www.property-net-malaga.com The National Association of Property Buyers (NAPB)https://www.property-net-malaga.com Royal Institute of Chartered Surveyors (RICS) and/or the Chartered Trading Standards Institute Consumer Approved Code scheme?
- What is your complaint process?
- Can I see proof of your financial status (make sure that buyers have the capital to invest in properties; unfortunatelyhttps://www.property-net-malaga.com some do not)?
- Can I have proof of recent purchases and the contact details for the sellers? Legitimatehttps://www.property-net-malaga.com reputable companies will be happy to provide this information to you. If they do not give it to youhttps://www.property-net-malaga.com walk away. If they dohttps://www.property-net-malaga.com follow up.
- Be Wary of Incomplete Valuations.
If the valuations carried out by the company seem less than comprehensivehttps://www.property-net-malaga.com be very sceptical in regards to proceeding. Without a proper valuationhttps://www.property-net-malaga.com they cannot extend a fair offer. They don’t care because they plan on dropping that offer down later.
- Do Not Jump On an Offer. Take your time to consider the offer; unethical buyers are counting on you to act out of desperation without taking the time to review the facts or the documents/reports related to the valuation of your house.
- Do Not Sign an Agreement. Signing an agreement or a contract with a house buying company is never a good sign. The language usually obligates you to use their services for a certain period (e.g. six to 12 months). You are stuck with them essentially. If they reduce their offerhttps://www.property-net-malaga.com they can prohibit you from selling with someone else.
- If It Sounds Too Good to Be True… It probably is. If an offer seems unexpectedly highhttps://www.property-net-malaga.com you may be tempted to count your blessings and then accept. Unfortunately it may be that you counted too soon. Offering a high price may be a signal that you will experience gazundering. This is another reason it’s important to know the value of your house before going into any sales situation.
When you choose a reputable companyhttps://www.property-net-malaga.com you do not have to add gazundering to your list of concerns. Protect yourself and go with a house buyer with a sterling reputationhttps://www.property-net-malaga.com integrity and the capital you need for a quick sale.