Buying A Home: Learn About Bully Offers

John Manneh January 31, 2014

In the hot seller’s Real Estate market that we are experiencing right now, a bully offer is a common tactic that is used  to secure the home you want when buying a home.

What Is A Bully Offer

A bully offer is when a home is listed for sale with an offer date that is four to seven days later, and a buyer offers the seller an amount they just can’t refuse before that offer date. If this happens, the seller is able to accept that offer in advance of the offer date.
Listing agents for that home by ethics have to notify every agent that is shown the property to give those buyers an opportunity to also offer. However, the challenge is that these bully offers often come in on weekends, and often with very short time periods, so it is still tough to react.
Bully offers are not necessarily always accepted  by a seller i they feel that they can wait until the offer night to get the same amount or possibly more. If a bully offer is not accepted then the agent does not bother contacting all the agents that have shown the property, and the marketing period just continues on as normal.

How To Prepare Yourself For Bully Offers

I you know that you are going to offer on a home and you are not planning to bully offer, have your bank draft of 5% deposit ready incase someone else put in a bully offer. This way, all your agent has to do is type up the paperwork, and if all the banks are closed you are not scrambling or stuck having that deposit.
If you have any more questions about bully offers or then home offer process, contact us through our Facebook page. 

 

Join The Conversation