Gazumping
Gazumping is when a seller accepts a higher offer after already agreeing a sale. Gazundering is when a buyer cuts their offer just before exchange.
Gazumping happens when a seller has accepted an offer from one buyer, then accepts a higher offer from someone else before contracts are exchanged. The first buyer loses the home and any money they have spent on the purchase so far.
It is legal in England and Wales, because an accepted offer is not binding until exchange of contracts.
Why gazumping can happen
Between an accepted offer and exchange, a home is sold subject to contract. Estate agents must keep passing new offers to the seller during this time unless the seller tells them not to. If a higher offer arrives, the seller is free to take it.
Gazumping is more common in busy markets, where several buyers compete for the same homes and prices are rising.
Gazundering
Gazundering is the reverse. The buyer lowers their offer shortly before exchange, knowing the seller may be reluctant to start again. It is also legal before exchange.
Gazundering is more common in slow or falling markets, or where the seller is under pressure to move, for example because they are part of a property chain.
A price can also be renegotiated for genuine reasons, such as a survey that finds repairs are needed or a mortgage valuation below the agreed price.
Reducing the risk
Buyers and sellers sometimes agree that the home will be taken off the market once an offer is accepted. Some sign an exclusivity or lock-out agreement, which gives the buyer a set period to exchange. Moving quickly with conveyancing also shortens the time in which either side can change the deal.
What it means for sold prices
Only the final price is recorded. If a home is gazumped, the sale to the second buyer is the one that goes into Price Paid Data. If a buyer gazunders, the lower figure is the one recorded.
As an example, if a seller agrees £250,000 and the buyer cuts the offer to £240,000 the week before exchange, a completed sale would show £240,000. These figures are only for illustration.
Scotland is different
In Scotland a sale becomes binding much earlier, when the formal offer and acceptance letters are concluded. House Price Monitor covers England and Wales only.
| Gazumping | The seller accepts a higher offer from another buyer |
| Gazundering | The buyer lowers their offer before exchange |
| Legal in England and Wales | Yes, both, until contracts are exchanged |
| Price recorded | The final completed price only |
Related terms
Sold subject to contract · Under offer · Exchange of contracts · Property chain · Conveyancing · Asking price