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Market rates for buying property in Toronto and the GTA are once again at the lowest they’ve ever been historically. Properties are in high demand, and prices are soaring.
In this highly competitive real estate market, we see some sellers listing their property under ‘holding an offer date.’ This allows them to accumulate multiple offers from potential buyers and drive up the selling price with a bidding war.
Some buyers, however, may aggressively pursue their target with the singular focus of a lion on the hunt. Enter a new approach: bully offers.
How Do Bully Offers Work?
The idea of a bully offer is to make the seller an offer they can’t refuse. It is a high-pressure sales strategy where a prospective buyer submits an offer on a property before the listed offer presentation date. By throwing down an offer with a very short, specific deadline, determined buyers try to goad an unwary seller into making a snap decision.
Bully offers do hold a certain appeal; they usually come at quite a good price with no conditions on the purchase. If you receive a bully offer, consider it carefully. You, the seller, can do one of three things: accept it, negotiate it, or stick to your guns and reject it.
So what role does the agent play here? First of all, a real estate agent is obligated to let the seller know about any and all offers made on their home, including bully offers. They must also notify any other interested parties who are considering buying the property. If a bully offer deadline doesn’t allow your realtor to inform other buyers, it’s probably not going to work.
Playing the Market
Bully offers are not exactly the most ethical way to play the property game, but in a housing market as competitive as Toronto, the most aggressive will often end up on top. Buyers willing to take a risk may find a bully offer serves their purpose. Conversely, the seller might be ready to entertain a high-stakes gamble, and a bully offer can do just that.
Tools of the Trade
Both buyers and sellers can make the most out of this savvy strategy. Sellers will profit from a bully offer with a firm, sky-high price. If viewing traffic to the property is slow and a bidding war unlikely, accepting a bully offer may be the best bet. Conversely, high-rolling buyers are in a position to snap up desirable properties without much competition.
How to Make Bully Offers Work For You
If you like to drive a hard bargain, a bully offer could be your ticket to success. As a seller, you can make the most out of a bully offer by knowing what you’re working with and whether the offer is worthwhile. If you understand the true value of your property, nobody’s going to push you around.
If you would like to learn more about bully offers and how you can make them work for you, reach out and connect with us today. The best decision is an informed one!
email firstname.lastname@example.org or call (416) 458-9252 to learn more.