This Birch Cliff Heights home sold in 5 days over the asking price. An aggressive marketing plan and beautiful staging accomplished a sale 18% over the list price while other homes are lingering on the market. While we had a 7 day marketing period planned, demand for this home was high, resulting in 3 'bully offers' after 5 days.
What's a bully offer in Toronto Real Estate?
Also referred to as a pre-emptive offer, a bully offer is when a buyer attempts to put an offer in to buy a property before the published offer review date. As a listing agent, I expect that a bully offer is:
- condition free
- an irresistible price
- meets as many sellers desires as they can (like meeting a preferred closing date)
As a home buyer, how do I make a successful bully offer?
As a buyer, your realtor should talk to the listing agent to see what the sellers expectations are to put together a strong offer. They should set a collaborative environment from the start to try and get you the home. Ideally, the offer would be strong and fast, to avoid competition. Understand, like this house, it may attract other offers, so to avoid having to bid incrementally and get your offer accepted, you may need to bid at the top of your budget.
As a Seller, what does a good listing agent do in a bully offer situation?
A bully offer will set a series of actions in motion. A good listing agent will give the other showing agents a heads up to let them know an offer may be in the works. This way they can see if other buyers would like to offer early as well. The Real Estate Council of Ontario (RECO) has rules in place for offers to make the process as transparent as possible. These rules include:
- changing the offer review date in the MLS listing to indicate a pre-emptive offer has been registered
- notifying all interested parties of this change (including agents that have shown, have showings booked, or have called to indicate interest)
- all agents with offers are notified of the offer count
- a sellers agent must disclose any discounting that may affect the sellers net
- a sellers agent must disclose a multiple offer situation