BROWSE

Gazunder

What is 'Gazunder'

A colloquial term used in the United Kingdom for the practice of a buyer lowering his real estate purchase offer below his previous offer when the transaction is already well under way. A gazunder typically happens when the market is weak and/or when the seller is coming from a position of weakness. "Gazundering" is not illegal, but many people consider it unethical. The seller may be forced to accept the lower price if it is a better option than continuing to pay the carrying costs on the property or continuing to hold it in a declining market.

Explaining 'Gazunder'

In a related practice called gazumping, a seller coming from a position of strength will raise the sale price of a property above the price that was previously agreed upon when the transaction is already well under way. A seller may gazump if he thinks the buyer will remain committed to the purchase even at a higher price or if he has received competing bids and can fall back on another offer if the first buyer walks away. Gazundering and gazumping are not possible in the United States, since contracts formalizing a property's purchase price are signed at the beginning of the real estate transaction.


Further Reading


Organizational and Economic Foundations of the Management of the Investment Programs at the Stage of Their Implementation
link.springer.com [PDF]
… of the manager the joint venture was under the threat of liquidation, and JSC “GAZ” under the threat of … 1281-2018-6-1-4. Accessed 12 Dec 2018CrossRefGoogle Scholar. Shpilevskaya, EV: Economic security of … Fascicle of The Faculty of Economics and Public Administration, no …

The Beginnings of Banking in North WalesThe Beginnings of Banking in North Wales
www.jstor.org [PDF]
… of the manager the joint venture was under the threat of liquidation, and JSC “GAZ” under the threat of … 1281-2018-6-1-4. Accessed 12 Dec 2018CrossRefGoogle Scholar. Shpilevskaya, EV: Economic security of … Fascicle of The Faculty of Economics and Public Administration, no …

The Administrative System of Cities in Kosovo during the XVI-XVIII centuriesThe Administrative System of Cities in Kosovo during the XVI-XVIII centuries
hrcak.srce.hr [PDF]
… of the manager the joint venture was under the threat of liquidation, and JSC “GAZ” under the threat of … 1281-2018-6-1-4. Accessed 12 Dec 2018CrossRefGoogle Scholar. Shpilevskaya, EV: Economic security of … Fascicle of The Faculty of Economics and Public Administration, no …

Agrarian Change from Above: The Southern Rhodesia Native Land Husbandry Act and African ResponseAgrarian Change from Above: The Southern Rhodesia Native Land Husbandry Act and African Response
www.jstor.org [PDF]
… of the manager the joint venture was under the threat of liquidation, and JSC “GAZ” under the threat of … 1281-2018-6-1-4. Accessed 12 Dec 2018CrossRefGoogle Scholar. Shpilevskaya, EV: Economic security of … Fascicle of The Faculty of Economics and Public Administration, no …

Bunušu in Ugaritian societyBunušu in Ugaritian society
search.proquest.com [PDF]
… of the manager the joint venture was under the threat of liquidation, and JSC “GAZ” under the threat of … 1281-2018-6-1-4. Accessed 12 Dec 2018CrossRefGoogle Scholar. Shpilevskaya, EV: Economic security of … Fascicle of The Faculty of Economics and Public Administration, no …



Q&A About Gazunder


What is gazundering?

Gazundering is when a buyer lowers his offer below the previous offer.

What does "better option" mean?

It means that one choice is better than another choice. For example, paying carrying costs on the property would be worse than accepting an offer at a lower price because you'd have less money left over after closing escrow.

What does "coming from a position of strength" mean?

A person coming from a position of strength has more power and leverage in negotiations.

Why might a seller accept a lower price than previously offered?

The seller may be forced to accept the lower price if it's better than continuing to pay carrying costs on the property or continuing to hold it in a declining market.

Is it illegal to gazunder?

No, it's not illegal.