Much like its cousin gazumping – which is the scourge of home buyers everywhere – gazundering is something all home sellers fear.
Whether you realise it or not, you’re at risk of being gazundered right up until the exchange of contracts stage of your property sale. Gazundering can derail your whole transaction and leave you thousands out of pocket.
Being gazundered is frustrating and financially devastating. But now there’s finally a solution – enter Rhino Home Protect and our unique gazundering insurance package.
What is Gazundering?
Imagine you’re selling your home. You receive a few offers, so you accept the highest one before raising a celebratory glass of bubbly.
Not so fast. A few days before the exchange of contracts, your agent contacts you with some bad news. The buyer has reduced their offer – and it’s now well below asking price. You’ve fallen victim to the dreaded gazundering.
At this point, you’re left with a choice. Do you continue with this particular buyer and lose out on a better price for your home? Or reject their offer and put your house back on the market, losing upfront conveyancing fees you’ve already shelled out for – which can total thousands?
This is where Rhino Home Protect’s Home Seller’s Protection Insurance comes in. With this cover, you can claim back conveyancing fees up to £1,650 should you get gazundered.
How common is Gazundering?
We can’t truly know how common gazundering is as no official statistics exist. We do know that 1 in 4 house sales in the UK fall through before completion, and gazundering is a key reason for this. There were over 200,000 properties sold in the UK from 2020 – 2021, so that’s a lot of scope for gazundering.
So, unfortunately, it’s pretty likely that either you or someone you know will be gazundered at some point.
Is Gazundering illegal?
Gazundering is not illegal in England. This is because a property transaction is not legally binding until the exchange of contracts – and gazundering happens before this.
There are no legal or financial repercussions to the buyer for gazundering you – which means you’re at constant risk of it happening up until exchange day.
Is Gazundering ethical?
We’re not ones to wade into a debate, but many people consider gazundering to be an unethical practice. They think that buyers should adhere to a form of ‘gentleman’s agreement’ and stick to their original offer.
However, we’re living in tough times. If people find themselves in a situation where they must make a financial decision, they’re going to make it in the best interests of themselves and their family.
Plus, people’s circumstances change, and sellers sometimes find themselves unable to honour the original amount they’ve offered.
We’d like to think that few people gazunder deliberately – but whether you’ve been victim of an unavoidable gazundering or a sneaky, shrewd move - the result is the same.
You as the seller are left with the unpleasant choice of accepting a lower amount or losing thousands of pounds in upfront fees.
What is Home Sellers Protection Insurance, aka Gazundering Insurance?
Home Sellers Protection Insurance exists to protect sellers against losing out financially if their sale fails due to reasons beyond their control. This includes gazundering – but also cases such as:
- Your buyer has an adverse search on their property which stops them from being able to sell up and honour the purchase of your home
- The cost of any defects or irregularities to the structure of the property you are looking to sell where repair work is valued at over 10% of the buyers accepted offer
- You are also covered if the individual buying your property can no longer proceed with the purchase due to a notice of redundancy, a relocation package which falls through or even if they pass away during the purchasing process.
If you’re covered with Home Sellers Protection Insurance, you can claim back conveyancing fees up to £1,650 if the sale falls through.
How can you prevent being Gazundered?
There’s nothing you can do to guarantee you won’t be gazundered. The buyer isn’t obliged to honour their original offer at any point until exchange of contracts – meaning you’re left vulnerable to gazundering right up until the exchange date.
The only thing you can do is protect yourself against the financial losses associated with gazundering – and other things beyond your control which threaten your sale – by taking out Home Sellers Protection Insurance.
Who is at risk of being Gazundered?
Gazundering can – and does – happen to just about anyone who is selling a property. Nobody is safe – unless they’re covered by Home Buyer’s Protection Insurance, that is!
Do I need Gazundering Insurance?
It’s not a legal obligation, but when you consider the likelihood of your sale falling through – 1 in 4 – it makes sense to cover your upfront fees.
Conveyancing fees are pricey and usually run into the thousands. If the selling process throws up a curveball – whether that’s gazundering, adverse survey results or something else beyond your control – it’s smart to have insurance to protect you.
Having your offer accepted can feel like the happy ending in searching for a new home, but sellers, beware! Your offer isn’t set in stone until completion day, and until then, you’re at risk of being gazundered.
Is Gazundering Insurance worth it?
The answer is yes. When you consider how likely it is that your house sale will fall through – and how much it’ll cost you if it does – it’s clear how having gazundering insurance in place would benefit you. Cover can be arranged in minutes from as little as £69, and should you need to make a claim for those costly conveyancing fees in the event of being gazundered, you’ll be glad you safeguarded your cash.
Why choose Rhino Home Protect for your Gazundering Insurance?
At Rhino Home Protect, we’re specialists in protecting sellers against gazundering, as well as against other things which can go wrong with a house purchase that are beyond your control.
Rhino Home Protect are award-winning industry leaders in both Home Sellers Protection Insurance and Home Buyers Protection Insurance.
We insure around 15,000 property transactions every year, and our customers trust us to be 100% open, honest and upfront.
Get a quote today, or contact one of our friendly team to find out more.
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