Gazundering. It might sound like an excellent word (and it is!) but if you’re buying a property gazundering can be your worst nightmare.
The opposite of gazumping, when another buyer makes a higher offer on a property you’re already in the process of buying, gazundering happens when a buyer lowers their offer just before contracts are exchanged.
Reports suggest cases of gazundering in the UK are on the up as interest rates rise, and some experts claim gazundering is currently happening in 50% of house sales.
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So, if you’re planning a house move in 2022 what do you need to know? How can you avoid being gazundered? This collaborative post reveals all!
5 things to consider when buying a property in 2022
1. Do your research
Before you start scrolling through property websites and visiting estate agents, do your research and work out what you can afford. Once you’ve done that, you’ll know where you can afford to look. Don’t fall into the rabbit hole of looking at dream homes in areas that are out of your price range, then try to find the same thing elsewhere. Only start looking when you’ve established a budget!
2. Get gazundering insurance
Home buyers are at risk of being gazundered right up until the exchange of contracts in a sale. Gazundering is not only stressful and emotionally frustrating, but it can be financially devastating too. There is a solution though: by taking out gazundering insurance, aka home buyer’s insurance, you can claim back conveyancing fees in the event you get gazundered. Cover starts from as little as £69 and includes things like conveyancing fees, valuation fees and mortgage lender fees. That way, you won’t lose money if the worst happens, and you can be safe in the knowledge you’re protected.
3. Be flexible
Experts agree 2021 was a seller’s market, with a high demand for homes but too few properties available. This has continued into 2022, making it important to compromise and be flexible if you want to find your dream home and make your next move. Be realistic, open-minded, and prepared to compromise on some of the things on your wish list.
4. Don’t be afraid to pay the asking price
We all love a deal, but when it comes to buying a property don’t be afraid to make an asking price offer if you’ve found ‘The One’. Estate agents agree that too many buyers lose out on their dream home when they make a low offer in a bid to try and bag themselves a ‘deal’, only for someone else to come in and make an asking price offer to secure the property and take it off the market.
5. Remember buying a home is supposed to be fun!
With gazundering and gazumping continuing to hit the headlines the prospect of buying a property in the current market can seem daunting. But it can be fun too! By doing your research, making sure you’re covered if things go wrong, and not being afraid to go in with an asking price offer it is possible to enjoy the process of buying a home, whether it’s your first or your fifth. Just make sure you don’t do any gazundering!
Are you considering a house move in 2022? I’d love to know about your experience!
This is a collaborative post.
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