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.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

SearchCompliance

SearchSecurity

  • time-based one-time password (TOTP)

    A time-based one-time password (TOTP) is a temporary code, generated by an algorithm, for use in authenticating access to ...

  • Security Operations Center (SOC)

    A security operations center (SOC) is a command center facility for a team of IT professionals with expertise in information ...

  • incident response team

    An incident response team is a group of IT professionals in charge of preparing for and reacting to any type of organizational ...

SearchHealthIT

SearchDisasterRecovery

  • disaster recovery team

    A disaster recovery team is a group of individuals focused on planning, implementing, maintaining, auditing and testing an ...

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

  • business continuity software

    Business continuity software is an application or suite designed to make business continuity planning/business continuity ...

SearchStorage

  • storage class memory (SCM)

    Storage class memory (SCM) is a type of NAND flash that includes a power source to ensure that data won't be lost due to a system...

  • Hadoop as a service (HaaS)

    Hadoop as a service (HaaS), also known as Hadoop in the cloud, is a big data analytics framework that stores and analyzes data in...

  • blockchain storage

    Blockchain storage is a way of saving data in a decentralized network which utilizes the unused hard disk space of users across ...

Close