In-Deed, the new conveyancing service launched by ex-Countrywide boss Harry Hill, has coined a new phrase for the property market in the launch of a new consumer video today, fronted by Phil Spencer.
It warns of the dangers of ‘gazanging’ – described as a new phenomenon in the property market where sales fall through, not because of gazumping or gazundering, but because sellers change their minds and decide to stay put.
According to In-Deed, more than 54,000 home buyers (19%) had sales fall through in the first half of this year because of ‘gazanging’ – a 20% increase on the previous half year.
The firm, which earlier this year was the first conveyancing business to launch on AIM and was instantly valued at more than £11m as it stated its ambition to take market share, says gazanging is now more likely to affect buyers than gazumping.
Uncertainty about the property market and an under-supply of suitable homes are major drivers of gazanging.
More than a quarter (28%) of sellers who opted to stay put say that they could not find a suitable property to purchase, whilst 12% said they got cold feet because they were unsure about what would happen to house prices.
Nearly one in six (16%) also said they were frustrated with the whole home-buying process, and became fed up with conveyancing delays and complications.
So, what does Phil advise? EAT has arranged for the video to be shown on our site. You can find it here:
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Comments
What on earth is this all about? This is not a new phenomenon. It certainly doesn't need a new word. Quite often sellers decide not to sell after a sale has been agreed for a wide variety of reasons. Different agency terms in different parts of the country allow for this to be dealt with in different ways. Most of the time we do the work and don't get paid. Its just a fact of life!
Instead of fees becoming applicable on exchange of contracts, make your fees applicable on acceptance of an offer! That way if the vendor tries to pull the plug on the deal or drags his/ her feet month after month and the buyer walks, then the vendor gets hit with a big fat invoice.
Works for us and this has saved us dozens of sales this year alone!!
I've heard it all now - make up a word that means absolutely nothing to describe a practice in buying and selling that even this old codger has never heard of, and can't even understand Phil Spencer's helpful definition of. PS no doubt took In-Deed's money, laughed all the way to the bank having first told the In-Deed directors how good they looked in the King's new clothes!
I really don't think St Kirstie would have fallen for such tosh!
Big T (the Gathunderer).
@PeeBee
Don't know. I've lost count.
Offers should become legally binding once accepted in writing. Then there would be no gazumping, gazanging, gazundering.
[Gazumping/Gazundering is a] "crap way for people to behave."
Couldn't agree more. It's a shame that people no longer feel able to honour an agreement.
As for gazanging, is it supposed to be a play on the word changing? Agreed again, totally ridiculous and pointless!
Hmm, I was going to have a cup of coffee but I've gachanged my mind and think I'll have a nice pot of tea instead.
When I first heard the term "gazumping" I was just a strip of a lad and thought it was a funny word.
Then I became an agent and whilst acting on my owners' behalf found out what a pain in the arse it could be:
Buyer 2 "I'll offer you £2,000 more"
Owner "I'll take it"
Buyer 1 "You Bastard!" and so on in a big circle until finally someone throws their toys out of the pram.
Then you get to exchange and the buyer says "Now about the price..."
Then the market got bad and you "Gazundering" was invented.
An equally stupid word, and a similarly crap way for people to behave.
Buyer "I want to buy your house"
Owner "I want more than it's worth"
Buyer "Hmmmm! Ok, but subject to survey!"
Then you get to exchange and the buyer says "Now about the price..."
But GAZANGING?
Apart from the word being utterly ridiculous, I mean seriously... that is really taking it to the next level.
But not being able to find a suitable next property is surely just one of those things. Horrid for everyone involved, but essentially unavoidable in these troubled times.
Perhaps agents worried about it should charge a listing fee, or talk about "Plan B's" to their clients...
blackpoolagent: please tell - how many times is 'gazumping' seen in Blackpool?
In-Deed – they have only been around 10 minutes have they completed that many transactions to provide such information?
Conveyancing requires signed original documents – to meet a strict/tight deadline is it quicker to post them out to a remote conveyancer after waiting a few days for them to arrive or is it quicker to pop into your local conveyancers office and sign the documents on the same day that they are produced?...I know what I think is quicker.
Nice free advert though.
@anon
Gazumping is legal in England and Wales but rarely seen in Scotland, where offers become legally binding once accepted in writing.
So the message is to speed up the legal side - the conveyancing!
What, by getting all the legal documents together quickly, perhaps even up front if you're really serious about selling, so that your buyer can move to exchange of contracts quickly?
And let's put them all in one easily accessible bundle for all interested buyers to see......
Isn't it funny how Phil advocates the speeding up of the conveyancing process in every way but avoids the one word/phrase that he (or was it just Kirstie) was so against. Home Information Pack ;)
Not that I disagree with him, I just wonder whether some common sense thinking 2 years ago would have seen the industry in a very differenty place today.
In a word fantastic. So now Mr Hill understands the importance of pushing through the conveyance as quickly as possible. Just like CPL then.
"The law should be changed and all these practices should be outlawed everywhere in the UK."
What practises? Pulling out before a contract is signed you mean?
Before contracts are signed and exchanged there is nothing for the law to enforce. I don't see how on earth you could enforce what is essentially a conversation before that.
Note the ltille "advertorial" Phil throws in right at the end for conveyancing services. Anyone know why?
The '3G' that gives a bad name to our profession.
The law should be changed and all these practices should be outlawed everywhere in the UK.
Just wondered if it was compatible with EU legislation? Any international lawyers around?