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Gazundering vs Gazumping: Understanding Trends in the Housing Market

Rhino Home Protect 28 August 2023

The housing market is a complex labyrinth of negotiations, transactions and trends that can be challenging to understand. Each twist and turn is filled with unique terminology and jargon that can add to the complexity. Among these, two terms stand out, not just for their unusual names, but for their significant influence on property deals: "Gazundering" and "Gazumping".

These trends have the power to transform what appears to be a straightforward process into a nightmarish ordeal. It's crucial to understand these terms and their possible consequences, as they can shape the outcome of your property buying or selling experience.

Unveiling the Concepts: Gazundering and Gazumping

Gazundering and gazumping represent tactics used by buyers and sellers in property transactions. Each has the potential to add a curveball in the negotiation process. However, they're not as complicated as they might initially appear. 



Gazundering occurs when a buyer, having settled on a price with the seller, decides to lower their offer before the exchange of contracts. This 11th-hour negotiation tactic puts the seller in a precarious position – they must either reluctantly accept a lower price or risk the collapse of the whole deal.

Imagine being a seller in this situation. You've agreed on a price and planned your next move based on that agreement, and then suddenly, the ground shifts under your feet. The buyer wants to pay less, and you're left scrambling to decide whether to swallow the bitter pill of a reduced offer or start the selling process all over again. 

Gazundering is legal in many areas; however, it's often viewed as an unfair practice unless there is a legitimate reason for the price reduction, such as a downturn in the market or issues revealed in a property survey.



If gazundering is a blow to sellers, gazumping is the scenario where the shoe is on the other foot. In this case, a seller, after accepting an offer from an initial buyer, gets enticed by a higher bid from another party. Despite the agreed price with the first buyer, who may have already invested in surveys and legal fees, the seller decides to go with the higher offer. This sudden turn of events can be a harsh blow to the initial buyer, leaving them stranded mid-transaction, nursing both financial loss and disappointment.

Gazumping is also legal in the UK, and it's not uncommon. In fact, according to research by MFS, 31% of UK homeowners have previously lost out on a property due to being gazumped in the last decade.

Tips for Sellers to Minimise the Risk of Gazundering

As a seller, taking proactive measures can help reduce the risk of gazundering and protect your interests throughout the property transaction. Consider implementing the following tips:


  • Choose a Chain-Free Buyer: Whenever possible, give preference to buyers who are not involved in a property chain. These buyers are less likely to encounter issues that could prompt them to reduce their offer, providing you with more stability and certainty.
  • Set a Date for Contract Exchange: Establishing a target date for exchanging contracts can help create a sense of urgency and focus among all parties involved. This forced concentration reduces the likelihood of unnecessary delays and provides a clear timeline for the transaction to progress smoothly.
  • Be Proactive and Communicate Regularly: Maintain regular communication with the buyer and ensure that your solicitor is actively pushing the case forward. Keeping all parties informed and engaged in the process minimises the chances of misunderstandings or last-minute surprises.
  • Be Realistic with the Property Price: Setting a fair and realistic price for your property from the beginning is essential. Overpricing may deter potential buyers, while underpricing could attract opportunistic offers. Striking the right balance helps discourage buyers from attempting to lower their offer later in the process.
  • Choose a Competent Estate Agent: Working with a reliable and experienced estate agent can make a significant difference in managing the selling process. They can guide you through negotiations, handle inquiries, and provide valuable advice on handling potential buyers effectively.
  • Be Transparent About the Property's Condition: Honesty is essential when it comes to disclosing any issues or defects with the property. Being upfront about the property's condition can prevent unexpected surprises during the transaction, reducing the chances of the buyer using such issues as a reason to lower their offer.
  • Plan Your Finances: It's vital to have a clear understanding of the lowest offer you are willing to accept. Knowing your bottom line allows you to be prepared for negotiations and make informed decisions if the buyer attempts to lower their offer. This financial clarity empowers you to navigate the negotiation process confidently.


By implementing these strategies, you can proactively safeguard yourself against gazundering and create a more secure selling experience. While it's impossible to eliminate all risks, taking these steps enhances your position as a seller and increases the likelihood of a successful and mutually beneficial transaction.

Strategies for Buyers to Avoid Being Gazumped

As a buyer, implementing the following strategies can help reduce the chances of facing this frustrating situation:


  • Get Insured: Home buyer protection insurance is a valuable shield against the financial losses incurred if you are gazumped. By obtaining this insurance, you can protect your investment and gain peace of mind during the transaction process.
  • Be Prepared: Preparation is key to demonstrating your commitment as a buyer. Obtain a mortgage agreement in principle before making an offer, and ensure you have all the necessary documentation ready. Being well-prepared showcases your seriousness and readiness to proceed, making it less likely for the seller to entertain other offers.
  • Move Quickly: Time is of the essence in a competitive property market. Moving swiftly through the buying process reduces the window for other buyers to swoop in with higher offers. Maintain close communication with your mortgage broker and conveyancing solicitor, ensuring that all necessary steps are taken promptly.
  • Request the Property to Be Taken Off the Market: When your offer is accepted, politely request the seller to remove the property from the market. This action decreases the chances of other buyers making competing offers and gives you a more secure position.
  • Build a Relationship with the Sellers: Establishing a positive rapport with the sellers can work in your favour. Engage in friendly and respectful communication, highlighting your enthusiasm and sincerity as a buyer. A good relationship can foster trust and make the sellers less inclined to entertain rival offers.
  • Consider a Lock-Out Agreement: A lock-out agreement is a contractual arrangement that grants the buyer exclusive rights to purchase the property within a specified timeframe. This agreement prevents the seller from entertaining other offers during that period, providing you with a level of assurance against gazumping.


Remember, each property transaction is unique, and employing a combination of these tactics can help you navigate the challenges of the housing market more effectively.

Safeguard Your Property Transactions with Rhino Home Protect

Gazumping and gazundering are undeniable factors in the property market, requiring buyers and sellers to be vigilant and well-informed. By gaining a deep understanding of these practices and implementing effective strategies to mitigate their risks, you can confidently navigate the property market and guard your interests.

At Rhino Home Protect, we understand the complexities of the property market and the importance of protecting your transactions. With over a decade of experience in the industry, we've supported countless home buyers and sellers in their property journey.

Our award-winning service, coupled with experienced staff and a customer-centric approach, make us a trusted and reliable choice for your property transaction protection needs. Whether you're a first-time buyer or a seasoned landlord with multiple properties, Rhino Home Protect provides the coverage you need to ensure a smoother and more secure experience in the property market.

Our specialist Home Buyers and Home Sellers insurance policies offer comprehensive coverage, delivering financial security and peace of mind throughout the buying or selling process. So, whether you're a buyer seeking protection against being gazumped or a seller looking for coverage against the uncertainties of gazundering, our tailored insurance policies are designed to meet your specific needs. Don't let unexpected setbacks derail your property journey.

Contact Rhino Home Protect today and discover how our insurance solutions can shield you from the pitfalls of the property market and provide you with the safety and assurance you deserve. 

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