Gazunder

AAA

DEFINITION of '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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Real Property

    Any property that is attached directly to land, as well as the ...
  2. Gazump

    The practice of raising the price of a previously agreed-upon ...
  3. Deed

    A legal document that grants the bearer a right or privilege, ...
  4. Real Estate

    Land plus anything permanently fixed to it, including buildings, ...
  5. Real Estate Agent

    A person with a state/provincial license to represent a buyer ...
  6. Property

    1. Anything over which a person or business has legal title. ...
Related Articles
  1. Top 8 House-Hunting Mistakes
    Home & Auto

    Top 8 House-Hunting Mistakes

  2. 5 Tips For Recession House Hunters
    Home & Auto

    5 Tips For Recession House Hunters

  3. 5 Mistakes That Make House Flipping ...
    Home & Auto

    5 Mistakes That Make House Flipping ...

  4. Selling Your House? Avoid These Mistakes
    Home & Auto

    Selling Your House? Avoid These Mistakes

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center