Gazundering is a real estate negotiation tactic in which the buyer, who has already agreed on the terms of the sale and exchange, lowers their offer at or near to completion. It is done for various reasons including taking advantage of a seller’s desperate need to sell quickly or as an attempt to push down the price if they think it’s too high. Gazundering often leads to further negotiations, where both parties try to reach an agreement that works best for them.
In some cases, gazundering can be beneficial for buyers because they are able to purchase property at lower prices than what was initially offered by sellers. On the other hand, this strategy can greatly disadvantage sellers since they have already invested time and money into researching potential buyers before finding one that accepted their original offer only to have them back out due to lowered demands.
Although there isn’t any legal obligation preventing buyers from using gazundering tactics during real estate transactions, many experts suggest that people should avoid such strategies when possible as it could lead to a breakdown in trust between two parties involved in a deal. In addition, unethical gazundering practices may also result in penalties from professional bodies such as Royal Institution of Chartered Surveyors (RICS).
Overall, while sometimes advantageous for buyers seeking discounts on properties, they wish purchase; ultimately gazundering is viewed as negative practice by most industry professionals and should therefore be avoided whenever possible when engaging with others through real estate transactions.
