Gazundering or as it is more generally known ‘Bid & Chip’ is the term used for the relatively modern times tactic that refers to the action of a buyer who lowers their offer on a previously agreed sale price just prior to exchange of contracts.
This approach is almost unknown in Harrogate because our market is so strong and demand often exceeds supply. In addition there is also a deep seated Yorkshire tradition of honest dealing in property transactions. Many local sellers, if suddenly confronted with a lower offer would refuse it straightaway and what’s more, probably decline to deal again with the buyer even if the original offer was reinstated.
All of the above should not be confused with a legitimate renegotiation following an adverse survey or a search report which may have identified a quite serious unforeseen issue – such as subsidence or a boundary dispute.
The problem for the seller of course is that any delay could collapse their whole selling & buying chain and result in the loss of their dream home. In this situation a dreadful chain reaction can also be set in motion derailing the plans of a dream home of 3 or even more connected but innocent parties.
What can Sellers do to protect themselves ?
Naturally we would say the first and most important thing is to always instruct a highly recommended local high street Estate Agent, preferably Myrings!
It seems that everyone thinks of themselves as estate agent experts thanks to years of property programmes on TV. What the TV programs don’t show is the amount of work involved and expert knowledge required – along with the experience / patience to deal with all the paperwork and recognise early on the behaviour of any buyers who plan to “ Bid & Chip “
This is what Myrings do…
Ø we help to set an early exchange date for contracts – and briskly progress the paperwork to mitigate, where we can , against any last minute change of heart or change in the buyers circumstances.
Ø we press the buyer to have their survey completed quickly – as search times are not quick in Harrogate and in addition some lenders also have large backlogs. If a sale is chain critical, this could mean that the buyer will need to replace the lender they were originally planning to use.
Ø we are optimistic/realistic on purchase prices – and long experience has also taught us to be wary of buyers whose offers/stories don’t quite stack-up.
We seem to be able to recognise a buyer/chancer who offers over the asking price to secure the sale, with the intention to chip down the price as the exchange date looms. Any buyers relying on a lender’s survey will know that a realistic market price is in play or it would have been down valued in the survey – and to try and squeeze the agreed price is sharp practice.
Ø we try to anticipate any major issues – and our inspections normally ensure that there are not likely to be any sizeable shocks in the buyer’s survey. We advise that any small problems that a surveyor may pick up on should always be repaired before the house is put on the market. The three favourites for surveyors to pick up on are damp, chimney pointing and electrical wiring. Large repairs of course can scare off the buyer or provide them with the opportunity to significantly lower their offer.
Ø we try to prevent delays – any hold ups between the solicitors of both parties could give the buyer sufficient wriggle room to lower their offer. We help to ensure that the seller has provided all the information that the solicitor needs and that it gets quickly to your buyer
This is what Myrings don’t do.
We don’t tend to put non-refundable deposit clauses into contracts. If a buyer decides to pull out because the seller won’t drop the price, the seller can certainly keep the initial deposit. However, we take the view that a clause like this will scare away just too many genuine potential buyers.
We hope that the all the above is helpful in better understanding the buying process.
If you wish to discuss the above or are interested in the Property market in Harrogate then please come along and see us and enjoy a free no obligation chat about the services we provide.
