The real estate market has been as unpredictable as many things in the past year. For months now we have experienced a strong demand from buyers in the market. And there continues to be a shortage of homes on the market for sale. The properties that do enter the market often sell in a matter of days, often for full or above asking price.
The competitions can be fierce and depending on the sales strategy of the home, some sellers may price their home at or perhaps below market value to promote a competition. Taking this approach, the sellers are hoping for multiple offers on their home and ultimately a higher sale price.
Along with a pricing strategy, often you will see offers being held back for one particular day and time. On this date and time, all the offers will be presented to the sellers all at once. Then the seller can compare all the offers and pick the best that suits their needs.
Even though an offer date and time is set, sometimes buyers elect to try and get ahead of the competition, and present an offer in advance of the offer date. Typically these offers are attractive with a short time for sellers to decide on this offer, and are called “bully” offers.
Some buyers elect to use a bully offer, as they feel the property will go into competition, and they want it! The buyer may feel this will entice the seller into selling early, and give them hope their offer will win. That doesn’t always work though. Not to mention leaving those buyers who followed the offer presentation date rules, frustrated.
If a bully offer is presented, it means the seller will not have the option to consider all the offers at once. And in this case, the seller may feel the pressure. For this reason, sellers don’t always like this option. And in a competitive market, sellers often want to see what they can get in a competition instead of entertaining a bully offer.
A bully offer is a buyer’s technique that is used, and if you are considering this approach, your REALTOR ® will be the best person to advise you. It is a bold move, and may or may not work, depending on your situation.