fbpx

To Bully or Not to Bully

Picture of Jane Pinzhoffer

Jane Pinzhoffer

Share this story:

To Bully or Not to Bully

Have you ever seen a listing that states a seller may or may not accept a bully or preemptive offer? If you’re unfamiliar with these terms and in the market for a new home, it’s important to understand what they mean.

What is a bully offer?

A bully offer, or a preemptive offer, is the same thing. The term “bully offer” comes from a buyer bullying the seller into considering their offer before a scheduled offer review date. The buyer is usually gambling that they stand a better chance of getting the home with less competition today. Bully offers are usually over the asking price with few to no conditions. The hope is to persuade the seller to accept the offer without seeing competing bids.

Getting more than one bid on a property isn’t uncommon in an active market. And signs point to this being more common again as we head into the spring market. In this scenario, a seller wants to increase the chances of getting multiple offers. Sometimes it’s because it’s hard to gauge how much a buyer will pay for a unique home or a home of limited supply.

Bully offers typically come with a short irrevocable period to push the seller to respond quicker.

However, there are some very distinct pros and cons that both buyers and sellers should be aware of when considering a bully offer.

Bully Offer Pros and Cons for a Buyer

From a buyer’s perspective, the obvious benefit of a bully offer is eliminating the competition and getting the house you want. In a seller’s market, the stress and time-consuming effort of searching for a home can take a toll. A bully offer may avoid this. After all, every time you lose out to a higher bid in a Seller’s market, a new precedent is set for valuing the next property –the sooner you get in, usually the better.

The con is the risk of overpaying. You’ll never know if you would have had any competition. You may have paid thousands of dollars more than you needed. Ultimately, you’ll never know. It comes down to how badly you want the house. A Realtor can help you determine the home’s fair market value and whether it’s worth making a preemptive offer.  Afterall, a house is only worth as much as somebody is willing to pay for it –how much are you willing to pay? And, is it enough to convince a Seller to skip the offer presentation?

Pros and Cons for the Seller

From a seller’s perspective, the pros are in having negotiating power. Bully offers tend to be condition-free, well over your original asking price, and, perhaps, your expectations. All of this, combined with a favourable closing, may be enough to motivate you to accept the offer to avoid further inconveniences of showcasing your home.

The cons are that if you’d waited until the scheduled presentation date, you could have ended up with something better –or not! Perhaps no offers come on the offer night, or few, or none at a price that intrigues you.

Bully offers are a tricky scenario and a gamble. From both buyers’ and sellers’ perspectives. The bully offer has been known to instill uncertainty, buyer’s remorse, seller’s remorse and regret.  Rely on the guidance of your real estate agent to provide insight into their analysis of the amount of showings you’re receiving, the feedback they’ve received, their expectations for offer night, etc.

If you’re looking for a Milton Real Estate Agent or are planning a move in Oakville, Burlington, and surrounding Regions call the KT team at 1 (800) 617-0090 or hit us up on Insta with a DM.

LISTEN | THE REAL ESTATE PODCAST

Read | REAL ESTATE BLOGS

Buying, Selling, or Leasing?

Contact KT today for a no obligation conversation.

Inspired? Confused? Comment.

Read More

Add Your Heading Text Here

Compare

Open House Terms & Privacy Agreement

for KT Open Houses

  1.  

1. Visitor Etiquette: All visitors are required to maintain a respectful and safe environment in our client’s property by adhering to the following etiquette guidelines unless otherwise directed by a representative of The KT Team:

  • Footwear: Please remove footwear upon entry to help preserve the property’s cleanliness.
  • Washroom Facilities: Visitors are kindly asked to refrain from using washroom facilities.
  • Personal Belongings and Furniture: For privacy and safety, please avoid touching personal belongings or opening furniture not part of the sale. Examples include dressers, media consoles, and most free-standing furniture.
  • Food and Beverages: Outside food and beverages are prohibited while touring the property.
  • Furniture: To respect our client’s space, please avoid sitting or lying on any furniture.
  • Pets: Pets are not allowed within the property.
  • Children: Parents and guardians are responsible for ensuring children follow these guidelines.

2. Visitor Tracking and Safety: To ensure the safety of our clients’ property and personal belongings and the security of our real estate agents, all visitors are required to provide accurate and complete contact information. This information is used to track attendees and ensure accountability.

3. Digital Communications and Follow-Up: By providing your contact information, you consent to receive digital communications from our real estate team, including information about this property, future open houses, and other relevant real estate opportunities. These communications may include marketing or promotional messages, and we aim to keep them relevant to your interests.

4. Opting Out: You may opt out of receiving digital communications at any time by contacting us directly at the contact points below or following the unsubscribe link provided in messages. Opting out will remove you from future marketing communications, although we may retain your contact information for internal records related to visitor tracking.

KT Realty
229 – 336 Bronte Street South
Milton ON L9T 7W6
info@kormendytrott.com
1 (800) 617-0090

4. Prospecting and Sales Activity: Our real estate team may use your information for prospecting and follow-up purposes. We ensure these communications are conducted respectfully and aim to provide opportunities aligned with your interests.

5. Privacy and Data Protection: We respect your privacy and are committed to protecting your personal information. Your details will not be shared with third parties, except as required by law or for purposes directly related to the safety of open house events.

6. Acknowledgment: By submitting this form, you acknowledge that you have read, understood, and agreed to these terms and conditions. You agree to adhere to any additional requests or instructions the real estate agents provide to maintain a safe and secure environment during your visit.