Both buyers and sellers have questions about them. In many cases, they also have misconceptions. The truth is, bully offers aren’t about forcing anyone to take action against their will. In fact, they can be a useful tool for buyers seeking an advantage—and just one more (potentially profitable) option for sellers who are open to them.
If you’re wondering whether you should make or accept a bully offer, here’s what you should know…
What is a bully offer?
Let’s start with the basics: what is a bully offer, exactly? This is how it works. In many cases, home sellers want to compare all of their bids at one time. To make that happen, they’ll set a date for when they’ll start considering offers (and refuse to look at any that come in beforehand).
A bully (or pre-emptive) offer is a bid that’s made before the designated day and time. From a buyer’s perspective, the idea is to make sellers think twice about waiting before they make a decision. While it’s a persuasive tactic on the part of the purchaser, it can wind up benefiting both parties—if it’s done right.
Advice for buyers
If you fall in love with a home that other buyers want, putting forth a bully may help you secure it. The key is making your offer as compelling as possible. Bid as much as you comfortably can, include a generous deposit if possible, and remove all conditions. If you’re comfortable moving forward without making your purchase contingent on an inspection or the ability to lock down financing, make sure all of your ducks are in a row.
Since creating a competitive edge is the goal, be sure to put an expiry date on your offer. Simply put, you want it to seem so profitable, straightforward, and agreeable that no seller can resist. At the same time, a deadline will make acceptance seen time-sensitive (which will increase your chances of success).
Advice for sellers
If you’re wondering whether or not to accept a bully offer, remember that it comes down to risk versus reward. Consider how much interest your property may (or may not) have generated already. Since there’s always a chance you’ll get more if you wait until the date you’ve set, you should only give serious thought to highly-attractive offers.
Of course, some sellers are steadfast in their desire to ignore all potential buyers before offer day. One way to avoid temptation is to instruct your agent not to show you any preemptive bids. If there is a specific sum that you would readily accept, know what that number is from the outset. Understanding your priorities will help you make a more informed decision!
The bottom line
Whether you’re a buyer or seller, a bully offer could lead to your ideal real estate outcome. Fortunately, a skilled local agent can help you weigh your options. Based on their neighbourhood knowledge and selling expertise, they can ensure that you make the decision that’s right for you!
Ready to take the first step towards your real estate goals? Get in touch to learn how we can make the process simple and successful!