Buying a home can be an exciting, yet daunting task. As a buyer, you want to ensure that you are getting the best deal possible. Unfortunately, the process of buying a property is not always fair. Two practices, in particular, gazumping and gazundering, take advantage of buyers who are not aware of their rights. Knowing these two terms can help protect you from getting taken advantage of during the home-buying process.
What is gazumping?
Gazumping occurs when someone has already agreed to buy a property and another individual offers more money for it. This is an unethical practice but unfortunately, one that still happens today. The seller may accept the higher offer even though they have already agreed to sell at the lower price, leaving the original buyer with nothing. This can be an especially frustrating experience for buyers, as it often happens at the last minute when they are ready to close on a property.
What is gazundering?
Gazundering is similar to gazumping in that it’s also an unethical practice; however, instead of offering more money for a property than what was initially agreed upon by both parties – gazundering involves offering less money right before closing on the sale. This practice forces sellers into accepting a lower price than originally agreed upon or risk losing out on a sale altogether – leaving them in a difficult position.
How can you protect yourself from gazumping?
The best way to protect yourself from being gazumped is to negotiate with the seller as quickly as possible before any other potential buyers have had a chance to make an offer on the property. It’s also important not to waste any time when making offers – if you don’t feel confident about your offer then don’t make it at all! Additionally, you should consider getting pre-approval for finance so that you can move quickly when making offers on properties that interest you. Finally, remember that communication is key – keep lines of communication open between yourself and the seller so that everyone involved knows exactly where they stand at all times. This will help reduce misunderstandings or miscommunications which could lead to potential problems down the line!
How can you protect yourself from gazundering?
The best way to protect yourself from being gazundered is by doing your research beforehand. Make sure you have looked into all aspects of buying or selling properties before entering into negotiations or agreeing on a purchase price so that nothing comes as a surprise later down the line! Additionally, ensure both parties understand what is expected throughout the transaction process – this includes understanding what items need repairs/upgrades before completion of the sale (if applicable), who will be responsible for paying certain fees associated with buying/selling (e.g., Stamp Duty Land Tax) etcetera).
Can home buyer’s insurance protect from gazumping and gazundering?
Home buyer’s insurance can provide invaluable protection from gazumping and gazundering. Whether it’s a buyer trying to gazunder, which typically involves them attempting to reduce the contract price at the very last minute, home buyer’s insurance provides buyers peace of mind knowing that if such situations do arise, their costs will be covered. This type of insurance also protects from other legal issues that can arise in the home-buying process. Home buyer’s insurance is an effective way for buyers to be reassured and have a negotiated purchase price protected regardless of any changes which occur after an exchange of contracts.
Gazumping and gazundering – protect yourself
When buying your dream home or investment property, it’s important to be aware of your rights and know what to look out for during negotiations so that you don’t become the target of unscrupulous practices like gazumping or gazundering. It’s also helpful to find yourself a reliable real estate agent who will have your best interests at heart throughout this process and make sure nothing untoward happens along the way. Being aware of these two practices will help protect you from becoming another victim of unfair selling tactics when buying your next home!
Last Updated on June 26, 2023 by Lucy Clarke