BY RON BARLAY
Bully offers have almost become common place in the real estate market this spring. Indeed, bully offers are occurring throughout many desirable neighbourhoods across the GTA, including parts of Mississauga and as the industry continues to be competitive, with low inventory levels in particular, bully offers are sure to continue.
What is a bully offer? In the current real estate market, most homes that are for sale are listed on MLS. Some listings include a date when offers will be reviewed by the sellers and their agent. This is usually one week from the time the home is listed.
However, when buying a home, a person may not want to wait until this date to submit an offer and they will provide one earlier than that listed date. This “bully offer” by the potential buyer/buyers is usually made in order to avoid competition and to avoid a bidding war. However, the “bully offer” is only successful if the seller accepts it.
How common are bully offers? As a real estate agent representing the seller, we have been provided with a number of bully offers this spring. Bully offers do seem to be on the rise.
In some recent cases, our sellers did accept the bully offer, as the offers were significantly more than the listing price and there were no conditions attached. In other instances the sellers did not wish to accept the bully offer and instead they choose to wait to see all the offers.
When a bully offer is registered, the listing agent has a legal obligation to contact all professionals who had shown the property during the listing period to make them aware that a bully offer has been made. This provides the opportunity for other potential buyers to counter with different offers.
Whether it is favourable to accept or reject a bully offer depends on the seller, the seller’s circumstances and the home. As real estate agent, I have assisted many sellers (and buyers) with bully offers. Making the right decision can mean more money for the seller or the right dream home for the buyer.
Whether you are buying or selling your home, you should have a dependable agent on your side. The real estate market is constantly changing, and bully offers are now more common in the industry.