As gazumping hits buyers, gazundering hits sellers, and is the practice of a buyer demanding the seller to reduce the property’s price to secure a definite sale. Gazundering is usually done during contract negotiation and frequently timed to prevent the seller from rejecting the lower price, as a rejection could jeopardise the sale. Gazundering usually happens when the property market is experiencing a downturn.
From the Yiddish gezumph, meaning to cheat or overcharge, it describes the practice of a seller accepting an offer from one potential buyer but then accepting a higher offer from another buyer. In England and Wales, until contracts have been exchanged, the sale agreement is not legally binding and even though the original buyer may have spent considerable sums on the conveyance process, they have to either offer a higher price or risk losing the purchase. You can take out gazumping insurance where for a one-off premium of around £100 you’re covered for search fees, surveys etc up to £1,500 if you are gazumped by more than £1,000.