Gazumping and gazundering: what they are and how to protect yourself

The short answer

In England, Wales and Northern Ireland, an accepted offer on a home is not legally binding. Neither the buyer nor the seller is committed until contracts are exchanged, which is often weeks later. Gazumping is when a seller who has accepted your offer accepts a higher one from someone else before exchange. Gazundering is the reverse: a buyer lowers their offer shortly before exchange, often when the seller is committed to a purchase of their own.

Both are lawful, if unwelcome. The best protection, for buyers and sellers alike, is to reach exchange of contracts as quickly as possible.

Gazumping

A seller can accept another offer at any time before exchange, and an estate agent must pass on every offer it receives to the seller, in writing, until contracts are exchanged, unless the seller has said in writing that they do not want to hear about offers of that kind. So even after your offer is accepted, others can still make theirs.

If you are gazumped, you can usually only match or beat the new offer, or walk away. Money already spent, such as a survey and the legal work done so far, is not usually refunded. With Keyfolio, every law firm on our panel, other than a firm you choose instead (your quote page says whether it does too), works on a no completion, no fee basis, so if you walk away you pay no legal fee for your purchase, only the disbursements already paid out for you.

Gazundering

A buyer can lower their offer at any time before exchange too. It tends to happen late, when the seller has found a home and fears losing it, or when a survey or valuation comes in below the price. A lower offer after a survey finds a real problem is a fair renegotiation; a lower offer with no new reason, timed to put pressure on the seller, is gazundering.

If you are gazundered, you can accept, negotiate, or refuse and look for another buyer. Ask your estate agent how strong the buyer's position is, and your conveyancer how a delay would affect your own purchase.

How buyers can protect themselves

You cannot stop a seller accepting another offer before exchange, but you can make it less likely:

• Have a mortgage agreement in principle and your deposit ready before you make an offer
• Instruct a conveyancer as soon as your offer is accepted, and reply to their questions promptly
• Ask for the property to be taken off the market once your offer is accepted; the seller may agree, though they remain free to change their mind
• Ask your conveyancer about an exclusivity agreement, sometimes called a lock-out agreement, in which the seller agrees not to deal with anyone else for a set period; it cannot make the seller sell to you, but it gives you time
• Keep in touch with the estate agent, and be ready to move quickly to exchange

How sellers can protect themselves

Most gazundering happens close to exchange, so the shorter the time between an accepted offer and exchange, the better:

• Price realistically, so a survey or valuation is less likely to call the price into question
• Ask the estate agent about the buyer's position: whether they have a mortgage agreement in principle, a buyer for their own home or the money ready
• Instruct a conveyancer before you accept an offer, and fill in the property information forms early
• If you are buying as well, keep both sides of the chain moving; see property chains explained

Next steps

The sooner the legal work starts, the less time there is for anyone to change their mind. Get an instant conveyancing quote to see your costs in full, and the guide to how long conveyancing takes explains where the weeks go.