What Is a Bully Offer?
A bully offer is mostly popular among buyers seeking to secure a property quickly without getting into a competitive bidding war with other potential buyers.However, does the acceptance of a bully offer always benefit both sellers and buyers? How can a real estate agent protect you ( the seller ) against bully offers so you can have the option to consider other offers? In this article we will explore everything you need to know about bully offers from the perspective of sellers and buyers. Let’s delve into the details!
What is the Bully Offer Strategy? Definition of the bully offer strategy
The strategy for the bully offer is very simple. The buyer makes an offer on a property and sets a tight deadline for the seller to respond, creating a sense of urgency. Typically the offer is higher than the asking price, making it more attractive for the seller.
Can you make an offer before the offer date? Is it Allowed?
As a buyer, You have the option to make an offer before the specified offer date; however if the listing broker has set a specific deadline, the seller will typically wait until that deadline to evaluate any other offers received When a buyer submits an offer with a strict deadline, they are committed to that particular property until the deadline stated in the promise to purchase or offer to purchase. If the seller does not respond to it within that time frame , the offer will expire. However it can be revived if the seller responds later, either with an acceptance or a counter offer. At this point, the buyer is no longer bound by the commitment and can choose to accept the offer or let the deal go.
How to avoid Bully offers?
This will primarily depend on the listing agent representing the seller in the transaction. In quebec as per law, the seller’s agent must give equal opportunity to all the buyers. So therefore It is recommended that the real estate agent should set a deadline for offers every week as soon as there is a scheduled visit for the property in question. Letting all the buyers officially know about the deadline to submit offers would prevent sellers from getting into a bully offer situation and be under pressure of selling their property without considering possible other offers .
Why would you accept a bully offer? Are bully offers good?
Accepting a bully offer, despite its controversial nature, can be an appealing option for sellers in certain circumstances. Here are a few reasons why sellers might be tempted to accept a bully offer:
- Quick Sale: Bully offers often come with a fast timeline, allowing sellers to close the deal quicker than usual. This can be advantageous for sellers who are looking to conclude the transaction as quickly as they can to avoid the potential uncertainty and delays that will come with the traditional process.
- Avoiding Multiple Offers: In competitive real estate markets like Quebec, multiple offers can create a stressful and time-consuming situation for sellers. Rather than choosing among many offers , Accepting a bully offer will eliminate the stressful bidding war process.
- Higher Price: Bully offers, by their nature, are often tempting and higher than the listing price. By accepting a bully offer, the seller does not need to wait for other buyers .
- Convenience and Reduced Hassle: Accepting a bully offer simplifies the selling process for sellers, as they can bypass the traditional steps involved . This convenience factor is quite appealing for the sellers who want to minimize the time and effort spent on the selling process.
- Buyer Incentives: Bully offers may also come with additional incentives from buyers, such as flexible closing dates, waiving certain conditions, or offering a larger deposit. These additional things in the offer can make it more appealing and influence the seller’s decision.
Can you counter a bully offer?
You definitely can. If the price and the conditions in the offer does not satisfy you enough, you can always counter it .