By Aleksandra Oleksak, The Real Estate Chick
Multiple offers are the name of the game in today’s Toronto real estate market. With low inventory levels and high competition, being a buyer is not an easy task. If you are tired of losing at multiple offers, there might be another option…introducing the bully offer!
What Is A Bully Offer
Most properties are on offer deadlines, meaning the seller and the seller’s agent do not want to look at any offers until a certain date. On that date, all buyers and their agents will then show up and present their best offers. If you’re tired of the anticipation, waiting, competing with a large pool of buyers and really want the property, you can try to bring in a bully offer. A bully offer is an offer that is brought to the seller before the offer deadline.
Some Things To Consider
Just because you want to bring a bully offer to the seller, does not mean the seller needs to accept. The listing agent must inform their seller that you would like to bring a bully offer forward and it is up to the seller to decide if they want to consider it or not. If the seller does decides they want to go ahead with the offer, it is the responsibility of the seller’s agent to call all the agents who have shown the property and let them know a bully offer is coming to the table.
That being said, you may still be competing against multiple offers, but there is a chance other potential buyers who have seen the property may not be able to make a fast decision and this is where the advantage of a bully offer comes in to play. Keep in mind, the amount of buyers who have seen the property will not be the same amount as if you had waited for the offer deadline. This is where you have the advantage of decreased competition.
Tips On Bully Offers
Just because there may be decreased competition in a bully offer scenario, does not mean it is a buyer’s opportunity to score a deal. The seller is aware of the worth of their home, and when you bring a bully offer to the table, it is best to be strong. Your offer should be more or less the same offer you would bring on offer night, but you have the instant gratification of being able to present it sooner and with less competition. Do not let this opportunity pass if you get the chance, and do not play games with the seller as they may reject your offer and tell you to come back on offer night.
If a property comes on the market with an offer deadline, but your schedule does not permit you to see it right away, have your agent book the appointment immediately for the day that you are available. That way, if someone brings a bully offer to the table, your agent will be notified because they have an appointment booked. At this point it gives you the chance to rearrange your schedule and see the property quickly before it is gone.
Bully offers present a small window of opportunity for a buyer, however, they don’t always work. At the end of the day, the seller is in the driver seat and if you want their home, you have to play by their rules. In today’s market, I see bully offers happening more and more often. If you are a prudent buyer, don’t think you have a week to check out a certain property. It may be gone before you know it.
Aleksandra Oleksak is Her City Lifestyle’s “Real Estate Chick,” and a Toronto real estate professional with Sage Real Estate. As @RealtyQueenTO, her real estate blog has been named one of the top 50 real estate blogs in Canada.