A bully offer is when the seller has set a date for accepting offers and you decide to make an offer prior to that date.
Picture by Placid Casual
Why do buyers sometimes make bully offers? Generally, but not necessarily always, buyers will make a bully offer when they have been looking for a long time, lost many houses in competition and wish to put an end to their search or they simply love the house and have to have it. Why do sellers accept bully offers? Usually the price is substantially higher than the asking price and the seller feels “a bird in the hand is better than two in the bush.” If he waits for the offer date he may not get as high a price. On the other hand he could wait for the offer date and maybe get more money. This dilemma is often the primary reason some sellers do not accept bully offers.
As a buyer there are disadvantages to consider when proceeding with a bully offer. You may be paying more for the house than you actually have to. If you wait for the offer date there may be no other interested buyers. If that were the case you will probably have overpaid drastically for the house. On the other hand there could be multiple offers on the offer date and you could be outbid by another buyer. The uncertainty of this situation is typically the reason buyers make bully offers.
In this circumstance we will be guided by “Our Guarantee” to “act with skill, care and diligence.” We will always be the level headed ones in the room. Before we advise you on a bully offer we analyze the situation carefully keeping your goal in mind – procuring the house but at the lowest possible price. We will advise you based on our analysis of the situation and our instinct as to whether you should wait for the date set for offers or “go for it beforehand.”