x
By using this website, you agree to our use of cookies to enhance your experience.
STAY CONNECTED!
    
newsletter-button

Agent cracks down on gazundering

10 October 2008
Written by rosalind renshaw

Leading London agent Cluttons has moved to cut down on gazundering by imposing strict timeframes on property sales.

The firm is implementing strict turnaround times for potential purchasers to secure exchange as quickly as possible and reduce exposure to gazundering.
 
When a purchaser makes an offer, Cluttons introduces these timeframes in which the sale must proceed:

1) A solicitor must be instructed that day

2) A survey, if there is to be one, should take place within seven days

3) A written mortgage offer must be in place within 14 days

4) Exchange must take place within 21 days of the receipt of contract papers

5) The agreed price is non-negotiable, regardless of surveyor’s report
 
James Hyman, partner for residential sales, said: “Demanding tight deadlines puts the seller back in control and separates the wheat from the chaff in terms of buyers. A buyer commissioning a survey within seven days shows an immediate financial commitment. If they aren’t prepared to move quickly and agree to the seller’s terms, then it is likely they were never serious buyers in the first place.
 
“By setting out this framework, the buyer is aware that there is no room for further price reductions. If, in spite of this, the buyer does try to come in with a lower offer just before exchange, the seller can walk away knowing they have not wasted months trying to secure the sale.”

Comments

  • icon

    we covered this story and have had a flood of feedback ... most of it suggesting that Cluttons would have a hard time implementing this ... agents, of cousre, work for buyers so they have to do their best to sell their place and get a good price. Not so sure this is the way to do it, though.


    http://www.findaproperty.com/displaystory.aspx?edid=00&salerent=0&storyid=22625

    • 14 October 2008 04:25 AM
  • icon

    most agents cannot be choosy in this market with few offers, good idea cluttons but would cluttons stop a sale if survey not done in 7 days? do all their clients request this? I think not. sounds good but not always the best for their clients, each sale is individual and cannot be rigid.

    • 13 October 2008 11:38 AM
  • icon

    Offer made & accepted, solicitor instructed, survery carried out, contracts exchanged and completed and moved in. It took 35 days all thanks to www.mypropertyhero.co.uk

    • 10 October 2008 03:01 AM
  • icon

    Brightmove, the Scottish system is not the answer. You make is sound simplistic that the buyer makes an offer and the seller accepts. Except the real worl is that the buyer has a survey done, makes an offer and the owner may not accept. The same buyer surveys and offers on another property and still not accepted. So a buyer can spend lots of money on surveys and have nothing to show for it.

    • 10 October 2008 12:56 PM
  • icon

    @Scott... the agent works for the vendor, not the buyer.

    • 10 October 2008 12:22 PM
  • icon

    And please tell us all how you intend to get a buyer to agree that "the agreed price is non-negotiable, regardless of surveyor’s report"? Sorry, but can't see it working.

    • 10 October 2008 11:32 AM
  • icon

    We ask all potential purchasers with nothing to sell for a non refundable deposits of £5000 (terms to be confirmed by their solicitors). Out of three offers last week we received 2 deposits and had one offer withdrawn by someone who clearly had a gazundering agenda. The offers that were made were at least 10% below the asking price and the buyers were happy to oblige to secure their 'bargain'. It protects our business as well as our vendors and flushes out unscrupulous buyers early on. A little more difficult if in a chain obviously but most interest at the moment is from people with nothing to sell.

    • 10 October 2008 10:50 AM
  • icon

    The practice of gazundering is abhorrant! The same legal system as used in Scotland ie buyer makes an offer, Vendor accepts and a deposit is paid - is the best solution. Government is too busy to listen!

    • 10 October 2008 10:46 AM
  • icon

    re cluttons gazundering idea - best of luck, but it won't work.

    • 10 October 2008 10:39 AM
  • icon

    Sounds like a great idea to protect your clients' interests. Good luck, we hope it helps.

    • 10 October 2008 10:35 AM
  • icon

    And that would also apply if house prices shot up overnight, you would not want the extra commission? I think not

    • 10 October 2008 10:34 AM
Breaking News
MovePal MovePal MovePal