Property prices are at an all-time high, and whilst buyers seem to be more than willing to pay the inflated prices for their next home, there are still those out there who want to try and bring down the amount that they are going to pay and not always in the most honest way,
The idea of gazundering or "price chipping" has been around for some time. However, it has dipped over the past few years. Now, perhaps due to the rise in house prices, it has seen a resurgence, and it is not good news for those looking to sell their properties.
What is Gazundering?
Gazundering is when the buyers of a home will offer a price, only to find a way to bring that price down as much as they can as close to the sale as possible. They will give various reasons for the price to be reduced, and they are citing issues to be there, when sometimes they may not even be a problem.
Some of the common reasons to chip away at the price of a property before sale include: dampness, roof issues or perhaps even the electrics in the property.
How much of a problem is it?
The answer is that if you are the property seller, then price chipping can become quite a significant issue for you. It is thought that it has been happening in around 50% of all sales of homes in the UK, and, in many of these cases, the cost of the property has dropped by thousands of pounds. Putting the seller in a difficult position, causing them more stress than they already have and losing them money.
Why is it happening?
The idea of price chipping isn’t a morally good one. However, it is not illegal. This means that there isn’t much that can be done about it. The main reason it has become something happening could be linked to several reasons.
The first is that the market is starting to swing in favour of the buyer rather than the seller. The interest rates are rising, and the cost of living crisis is also significantly impacting people's lives.
Sellers are also in a position where they want to sell their home, meaning they could feel they need to accept any offer just to get it done. Otherwise, they may need to start the process again and find another buyer for their property.
We don’t know how long the property market will look like it does right now, but one thing is for sure, we hope that price chipping starts to calm down and that sellers are getting a fair price from buyers for the property that they are selling.