In a world of business especially one where everyone tries to outdo the other a lot of terms and terminologies often comes along with the business. A good example of such a phrase is Gazumping. This is a very common word used in business but one whose meaning remains unknown to many people. So, what is Gazumping and how does it work.
Well, put simply, gazumping refer to the practice or act a seller of a certain good or even service accepting a higher offer for a property or service even after agreeing to sale the same property to another buyer at a lower price. Gazumping when it happens can result in devastating consequences on both the seller and the buyer both financially and emotionally. In many areas where this practice has been used, it has resulted in great anger and disappointments in the affected people.
Gazumping Can Result in Financial Loss
Financial loss or its implications is one of the known perils gazumping when it occurs. One of the greatest risks of gazumping is financial loss. This is in fact the immediate consequence that comes up whenever there is a business that has been concluded in this manner, it results in unprecedented financial loss. Buyers who had made the decision to buy a product or property often find themselves financially constrained whenever another buyer gazumps them to a deal. When this happens, it results in great financial loss or setbacks many of which take some buyers time to recover from.
Gazumping Results in Emotional Distress
If you have ever asked yourself what it gazumping and what it does this one is for you. Gazumping has a very high potential of delivering emotional distress to the buyer. The anger and disappointment that follows once a buyer realizes that they have been gazumped to a deal is just unimaginable. In many cases many of the affected people are often left feeling unworthy, angered and dejected.
Gazumping Can Result in Waste of Time and Effort
Gazumping is not an easy process as it might appear on the outside. It is a time consuming process with loads of stress attached to it. Investing a lot of time trying to acquire something only to miss out on it in the last minute can leave someone feeling like they wasted their time and efforts for nothing. Buyers invest a considerable amount of time in the process of trying to buy a property which includes viewing and even negotiating for the property. When they lose out on it in the last minute that often leaves them feeling dejected with a colossal amount of their time gone to waste.
Gazumping Possess a Damage to Some Business Relationships
Gazumping has the ability to damage relationships between buyers and sellers in some cases. If a seller gazumps a buyer in the last minute, this can lead to a sense of distrust and resentment in the end. Such a simple action can have a severe impact on the existing relationship between the buyer and the seller and might affect their future business transactions.
Gazumping Can Result in Legal Implications
While this is not so common, gazumping can sometimes result in legal implications. While there are county variations in the specific laws governing gazumping, there are provisions in the law which state circumstances under which the buyer might take some legal actions on the seller in the event of a gazumping action. These situations can include things like a breach of contract and many others envisioned in the law.
Conclusion
The question of what is gazumping can be best answered by what gazumping is and some of its perils. The text above takes an in-depth look at what gazumping is and some of its perils to the buyer.