Updated: Aug 20, 2021

When the purchaser of a property reneges on an agreement to buy and tenders a lower price than previously agreed. This usually occurs when prices are falling and properties are difficult to sell. It exploits the fact that if the seller does not accept the lower price they will have to bear the delay and costs involved in finding a new buyer at, possibly, an even lower price.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.