What does Gazundering mean?

Gazundering is a term which works in the favor of the buyer of a property as opposed to gazumping which works in the favor of a seller. Gazundering is the action undertaken by the potential buyer, who tries to impose a new offer (definitely lower bid) for the property. This can be done only before the exchange of contracts, which in English property law is the legally binding phase of a transaction. It may sometimes work, as the seller might accept this lower price, in order not to have to wait any longer until the property gets sold.

For example, if the price of the property you initially agree to is say £250,000, right before the exchange of contracts you state your final offer as being £240,000 or you will back out from the arrangement. Now, if the seller is constrained by the circumstances he might actually accept this offer and the exchange of contracts happens with this new price being annotated.

This is an action which the buyer undertakes especially when the real estate market fluctuates, and the real estate prices generally drop, and his offer is very likely to be accepted by the seller who in order not to undertake the risk of prices dropping even more, accepts the deal.