'My buyers dropped their offer by £15,000 the day before exchange': Gazundering and how to avoid it

Sarah, a homeowner in England, faced a distressing situation when her buyers dropped their agreed offer by £15,000 the day before contracts were to be exchanged. This tactic, known as gazundering, left her family in a difficult position, facing potential financial losses whether they accepted the reduced offer or refused it.

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It was awful, your heart just drops to your stomach.

Gazundering exploits the fact that in England and Wales, property offers are not legally binding until contracts are exchanged. This process typically takes around 120 days, during which one in three house sales fall through. The Ministry for Housing, Communities and Local Government estimates this costs sellers £400 million annually and impacts the wider economy by £1.5 billion.

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I can't even begin to go through the financial consequences [if we lost the sale].

The Conveyancing Association is urging the government to implement reforms sooner than the planned 2029 date. These reforms aim to shorten the transaction time and provide financial relief to buyers. Sarah, after consulting with her family, decided to put her house back on the market. Fortunately, her original buyers quickly returned, agreeing to the initial sale price.

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Gazundering is actually awful. It's not just a business deal. It's my children's home and the fact that nothing's been done about it is ridiculous.

Beth Rudolf of the Conveyancing Association noted that while gazundering is not widespread, it has seen an increase due to a shift in the property market towards a buyer's advantage. She emphasized the emotional toll such practices take on individuals and families, highlighting that it's more than just a business transaction.

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It's not actually that big, it doesn't happen very often [but] it's started increasing though because of the change in the property market that's made it a buyers' market.