Browse Definitions:
Definition

gazumping

Contributor(s): Matthew Haughn

Gazumping is what happens when a seller accepts an offer, but backs out of the deal after receiving a higher offer.  More commonly seen in informal and verbal agreements to purchase non-commodity assets, gazumping is a frowned-upon but not necessarily illegal occurance. The first buyer, whose offer is initially accepted but is later rejected in favor of a higher offer, is said to have been "gazumped."

In some places of the world, acceptance of an offer is not legally binding until it is put in writing. The non-binding status of a verbal offer allows the seller to solicit higher offers up to the time a contract is signed or a written bill of sale (BoS) is issued. When the market is bullish and demand is on the rise, gazumping can lead to bidding wars. In real estate, gazumping can be especially frustrating -- not only because of the personal anxiety it creates for the buyer, but also because the buyer may have spent money on surveys and inspections, only to lose the deal.

In gazundering, a similar term, the buyer retracts a verbal offer at some point and then submits a lower purchase price. Gazundering is more likely to occur in faltering bear markets when the economy declines and there is a drop in wholesale prices. Should a seller refuse an offer and wait in hopes of getting a better one, he is said to be gazanging. The terms gazumping, gazundering and gazanging are more commonly used in market segments where offers are often made and accepted verbally, at least initially. They are also used to describe unacceptable practices for website auctions.

This was last updated in October 2017

Continue Reading About gazumping

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

SearchCompliance

  • internal audit (IA)

    An internal audit (IA) is an organizational initiative to monitor and analyze its own business operations in order to determine ...

  • pure risk (absolute risk)

    Pure risk, also called absolute risk, is a category of threat that is beyond human control and has only one possible outcome if ...

  • risk assessment

    Risk assessment is the identification of hazards that could negatively impact an organization's ability to conduct business.

SearchSecurity

  • biometrics

    Biometrics is the measurement and statistical analysis of people's unique physical and behavioral characteristics.

  • principle of least privilege (POLP)

    The principle of least privilege (POLP), an important concept in computer security, is the practice of limiting access rights for...

  • identity management (ID management)

    Identity management (ID management) is the organizational process for identifying, authenticating and authorizing individuals or ...

SearchHealthIT

SearchDisasterRecovery

  • business continuity and disaster recovery (BCDR)

    Business continuity and disaster recovery (BCDR) are closely related practices that describe an organization's preparation for ...

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • call tree

    A call tree -- sometimes referred to as a phone tree -- is a telecommunications chain for notifying specific individuals of an ...

SearchStorage

SearchSolidStateStorage

  • hybrid hard disk drive (HDD)

    A hybrid hard disk drive is an electromechanical spinning hard disk that contains some amount of NAND Flash memory.

Close