How does a bully offer work?
If you don’t work in the real estate industry, a bully offer, also known as a pre-emptive offer, will probably go over your head. That’s totally fair, but if you want to be an educated seller and get that $$$, you’ll want to stay informed.
A bully offer is an offer from a buyer to a seller to purchase a home listed for sale before the seller has said they will start accepting offers.
For example, if you listed your St. Clair W home for sale on Thursday, you’d probably want to let the listing run over the weekend and start accepting offers the following Tuesday. A bully offer would come in anytime between listing the home and the official day of accepting offers.
This decision to “hold offers” until a specific date is a great strategy. It allows the most buyers to see the home and increases the sellers’ chances of getting a bidding war and possibly driving the selling price up.
Once a bully offer is submitted, you as the seller can choose to accept it, start negotiation, or stick to your original plan and see what happens once other offers start flowing in.
But WHY is it called a bully offer?
When a buyer submits a bully offer ahead of time, they typically offer a great price and then give the seller a small window of time to respond so they can’t go and find competing offers elsewhere. By doing this, the buyer is trying to (nicely) bully the seller into accepting the offer.
Should you accept a bully offer?
That’s totally up to you! There’s no right or wrong answer. As the seller, you would work with your agent to determine whether or not the bully offer is worth your while. Most agents and buyers will know that to get you to accept a bully offer; it will have to be a good one, which typically means above asking price!
As the seller, you must know the market value of your home ahead of time. This will help you make an informed decision and be able to decipher different offers and their value!
How to make a bully offer – home buyers
If you’re a buyer wondering how to make a bully offer, real estate bully offers are no different from a regular offer. The only difference is that you’re sending it in early and trying to avoid competing with other buyers.
While the seller does not have to deal with your bully offer, their agent is required to tell the seller of your offer and notify all other interested parties.
We hope you found this blog useful in explaining what a bully offer is. As a seller, it’s important that you know how the process works and that you understand the value of your home based on research and evidence.
If you have any questions about the home selling or buying process, book a free consultation call with us by clicking HERE!