Deal or no deal: Brits divided over gazundering

Six out of ten people (58%) think gazundering is unethical yet, if pushed, 94% of the nation would force the price of a house down at the last minute, according to a new study by leading personal finance site Fool.co.uk.

With house prices falling 3% in the last quarter, buyers are looking to exploit the market. The findings show that one in six people (16%) have experienced gazundering and this looks set to rise if prices continue to fall month-on-month.

However 45% of Britons believe gazundering should be made illegal. One in four homeowners believes the practice is so underhanded that, if someone tried to gazunder, they would refuse to sell to that buyer at any price, even at their original offer.

So buyers should beware: there is a 24% probability that if you try to gazunder a seller, you will lose the opportunity to buy the property entirely.

94% of people would gazunder if a survey of a property they were buying revealed expensive repairs were needed

A third of people (34%) would carry on the gazundering chain if their buyer gazundered them

29% think it is acceptable to gazunder if a property fell in price between the offer and the exchange

When the price is wrong

Many buyers (94%) would have no qualms about reducing their offers on a property if extensive repairs were needed which they were not previously aware of. However if a property was to fall in price between the offer and exchanging contracts, almost half (49%) believe that it would be unethical to gazunder.

Carry on regardless

While nearly half (45%) thought gazundering should be illegal, the same number of people would still sell to a buyer who gazundered them. 34% would pass on the gazundering up the property chain and gazunder themselves. However a principled 33% would not pass it up the chain.

Donna Werbner, Property Expert at Fool.co.uk says: "Falling house prices create a terrible moral dilemma for buyers. If they don't gazunder, they could potentially find their property has fallen in value before they have even bought it.

"But, if they do gazunder, there's a one in four chance they could lose out on the sale altogether, as 24% of sellers would refuse to sell to a gazunderer at ANY price, even at their original offer.

"People may think the practice of gazundering is unethical or even immoral. But homeowners have benefited from astronomical increases in house prices over the past decade, and are trying to sell at the peak of the market. If the seller's property is no longer worth the amount that has been offered, then maybe holding the other party to the original offer is not all that honourable or admirable either.

"It all boils down to what you value more highly: your morals, or more cash in your pocket."