What is Gazundering?
Gazundering, is a situation whereby potential homebuyers looking to take advantage of a housing downturn, cut the price of properties at the last minute of negotiation or exchange. It is a phenomenon occurring in the current credit crunch climate. Take this example of a buyer knocking off £250,000 from a £3m home on the day of exchange.
What does it mean to be Gazundered?
Well simply being at the receiving end of a transaction i.e. a seller of property in these trying times of the credit crunch. As it is currently a buyers’ market, most sellers face the risk of being Gazundered at the last minute of transactions. Read this sellers’ rather pathetic account of how he was Gazundered by his own agent.
Why is it done?
Simply to squeeze a deal off desperate sellers wishing to cash in on their homes before further price drops
What is the impact?
It is simply helping to correct house prices via the forces of demand and supply. Gazundering is reaching new extremes especially in London’s £1m – £5m homes market, with estate agents reporting hundreds of thousands of pounds being slashed from offer prices just hours before exchange.
Gazundering 101 for International Property Investors
International property investors, should take advantage, grab bargains, gazunder!. There are bargains to be found in markets currently facing the heat. Be on the lookout for properties in London, Spain, New York, the U.S & UK at large, most of Europe. If you are a cash buyer, you are at the advantage. Partner with experienced agents to implement a gazundering strategy.
How to prevent Gazundering
To be honest there isn’t much you can do as it is simply the impact of a macro economic effect hitting the housing market. If you however insist, read this guide on how to avoid getting gazundered.
photo credits: pansonaut [via flickr]