“Gazump” is a term used in British and Australian English to describe a situation where a property sells for more than the agreed price, which can occur in various situations, from illegal to ethically questionable. It is most common in hot real estate markets, while in down markets, a “gazunder” may occur, where a buyer lowers their offer price. The origins of the word are unclear, but it may have Yiddish roots.
The term “gazump”, more commonly seen in British or Australian English, refers to a situation where a property sells for more than the agreed price. There are various situations in which a problem can occur, from situations that are definitely illegal to those that are ethically questionable. Gazumping generally occurs when the market is hot, whereas when the market is down, it is possible to see a gazunder, in which a buyer abruptly lowers the offer price at a critical stage of negotiations.
In a classic gazump, two people agree on a reasonable price for real estate, sign a contract, and begin the lengthy process of inspecting the property and making last-minute negotiations to prepare for closing. Then a third party comes along and offers the sellers more than the agreed amount, and the sellers break the contract with the buyers to take advantage of the higher price. While this practice is not necessarily illegal, it is generally considered impolite, as long as both parties were negotiating in good faith before the problem occurred.
At the more illegal end of things, a buyer could get caught up in a scam where he or she thinks a gazump might be about to occur, prompting the buyer to offer a higher price to avoid losing the property. . This scam is usually perpetrated by an unethical seller requesting assistance in convincing the buyer that someone else is offering more for the property. If a buyer can prove that he or she was pushed to offer more due to a scam, there may be legal consequences for the perpetrator of the scam.
The gazump is most often seen in crushed real estate markets where prices are constantly rising. A seller’s reluctance to enter into a contract may indicate that the seller is expecting a higher price, and should alert buyers to the fact that they may be making a deal with someone who will easily turn them down for a higher price. On the other hand, sellers may feel entitled to put their properties back on the market or accept another offer if they feel that buyers are not acting in good faith, or that buyers are unreasonably dragging their heels.
The origins of this rather interesting word seem to lie in the early 1900s, when it was first used to mean a scam or fraud. This word appears to be of Yiddish origin, like many other colorful words in the English language, such as “schmaltz.” However, a clear link to Yiddish has not been established. “Gazunder” is a portmanteau of “gazump” and “under” dating from the 1980s.
Smart Assets.
Protect your devices with Threat Protection by NordVPN
