Every conveyancer will tell you they dreamt up the word “Gazanging”.
Gazanging is a new problem faced by over 50,000 home buyers each year. It is the term used to describe when a seller abruptly pulls out of a house sale usually towards the end of the process. This leaves the buyer with costs which cannot be recovered such as solicitors costs, mortgage fees and general expenses. In most cases it also leaves the borrower with a mortgage offer which they then need to quickly find a property for before the offer expires.
This usually occurs when sellers who don't really intend to sell but rather intend to see how much they could realistically get enter the market. In some cases a seller will inflate their property price in the hope a buyer will come and make an offer. At this stage the seller should inform the buyer that they really do not intend to sell but this rarely happens and eventually ends up leaving prospective buyers & first time buyers out of pocket.
So what can you do to avoid gazanging as a first-time buyer?
The first step when you meet a serious seller is to ask them t take the property off the market and off all marketing websites. This is a stipulation most serious sellers will adhere to. In some cases and for good reason a seller will not agree to this until you can prove serious intent to them.
A good conveyancer will also go a long way to reduce the chances of gazanging happening to you. This is because they will be fast and will carry little costs of the sale didn't go through.These are referred to as no sale no fee conveyancers.Over 15% of sellers get nervous with slow conveyancing and this can contribute to the likelihood of gazanging. It worth noting that regardless of how fast your conveyancer is, if you are in a chain: hene your seller is waiting on their conveyancer to check the home they want to buy or waiting on the conveyancer of their sellers home to check another home. This will of course be completely out of your hands..
Over 30% of sellers will usually not find an “appropriate home” to move into, so it is worth asking the seller what plans they have in regards to that and how far they are. This will allow you to gauge their level of seriousness.
Look for a property where the seller will not need to buy – some real estate agents now advertise properties with no onward chain separately. This could include:
repossessions – but they usually want a quick exchange
executor's sales, where the owner has died
owner emigrating or moving into a nursing home
buy a new house – fewer new homes are being built, but it is often possible to buy properties that are already completed, rather than having to wait months for builders to finish them.
buy at auction – the sale date is fixed