What’s a “bully offer”?

This one is important for both buyers and sellers to understand. When the market leans to the sellers side heavily, often sellers will consider holding out on offer presentations until a certain date and time in order to gain as much interest as possible, and create a multiple offer situation (or “bidding war”).

A “bully offer” (more correctly called a pre-emptive offer) essentially ignores that deadline, and forces the listing agents hand to present that offer to their seller. For example; A listing on Lasalle Blvd is priced at $400,000 and is holding off on any offer presentations until the following Sunday. A buyer agent has an interested buyer and decides to submit an offer above asking without conditions on the Wednesday before the deadline. The listing agent then has the obligation to present that offer to the seller. The seller doesn’t have to accept and can continue to hold offers as originally planned, or they can accept that offer and forego the holding period.

All this considered, the seller must make the decision to review “bully offers” if the situation arises. Often they will simply not consider them, under any circumstances, leaving the buyer and buyers agent with no option but to submit on the determined date.

It can be confusing, but don’t worry, we are here to answer any questions. So reach out if you have more!

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