Bully offers can be an effective strategy when a property is holding off offers until a specific date in the future. If you have fallen in love with a house and don’t want to get into another bidding war on the offer date. There are some tips and strategies to get your bully offer accepted.
Tips for Bully Offer Success:
Surprise the Seller – don’t reveal your cards in advance. Bully offers are most successful when the seller is surprised by your offer. However, in Ontario Realtors are legally required to notify any buyers that have shown interest in the property that they have received a bully offer.
- Make Offer Tempting to Seller – offer price needs to WOW the Seller and ideally have no conditions. When submitting an offer with no conditions it is critical that you are pre-approved and have discussed the property with your mortgage broker, and ideally had a home inspection prior to making an offer to reduce the likelihood of running into surprises on closing.
- Closing Date is Ideal Date for Seller and Inclusions and Exclusions as Well – have your Realtor ask listing agent what date would be ideal for the seller and confirm inclusions and exclusions while you are at it.
- Submit Offer Early – submit an offer as soon as possible after the property is listed. There really isn’t any point in submitting an offer the day before the offer date.
- Give Seller a Short Time Period to Consider Offer – a strong bully offers usually expires in a couple of hours otherwise listing agent is given time to drum up competing offers.
- Work with a Realtor Who is Experienced with Bully Offers – this is an advanced negotiation tactic and requires your real estate agent to have or form a strong relationship with the seller’s agent and has experience making bully offers work.
- Bully Offers are About Increasing the Chances of Getting the House not About Getting a Deal – only make a bully offer when you are in love with the home or if you are so frustrated with bidding wars and really what the house.
In a hot real estate market when supply is low and prices are continuously going up buying a home may be the ultimate objective and paying a little over the market today may in a couple of years feel like the smartest decision you make.
The Greater Toronto Area has been very competitive for many years. Given the current low mortgage rates and the migration numbers coming into Ontario the GTA continues to see demand outstripping supply and the projection is that the short supply of housing will continue for a number of years.
Are you thinking of selling or buying a home want to work with a Realtor that has a successful track record of implementing real estate strategies that work – reach out