Now I know with the market being as crazy as it is, a term you will hear come up very often is “bully offers”.
The term refers to what I think of, as going all in at the poker table. The plan is the beat out all other offers before any buyers can make a play at the property. Get in fast and go in strong. On the plus side, buyers get the house they want – sellers get great money for their property. Is seems like a win-win.
But here’s the rob; sellers could potentially be missing out on other buyers that have yet to view the property.
The buyer putting in the bully offer could potentially be over paying and may have come up with cash money if there is a gap between the appraised amount for the property and the purchase price.
What also happens with bully offers is that properties are selling for way over asking, fueling higher prices in that area. Another great reason for the general disdain for these types of offers. As an agent who has worked both sides of bully offers, the most important factor is ensuring your client’s interests are always protected.
For a buyer, make sure they don’t over pay and for sellers make sure you call every other agent who has been through the house because maybe there could be another offer on the table.
With Toronto being a hot market, I don’t see these types of offers disappearing but would advise both buyer and sellers to beware the bully.