Bully Offers

24 February 2016
Remax-Condos-Plus

It’s not uncommon for a Listing Agent in this Toronto real estate market to list a property at a lower price to get multiple offers. The Listing will usually include a notice that all offers will be presented at a set time 4 or 5 days hence. Then one buyer, through their Agent, decides to jump the Que. They offer well above the list price but make the offer irrevocable for only 24 hours. That is a Bully Offer. Now the Listing Agent must, by law, present this offer to the Seller for consideration. What else should the Listing Agent do?

First, they should advise the Seller that they can accept the offer or reject the offer and wait for the presentation period for all offers at the agreed date. They should also do nothing until the end of the irrevocable period.

Second, the Listing Agent must phone all Buyer Agents who have registered an offer to bring their offer forward and present it at the same time as the bully offer.

Finally, the Listing Agent should also phone every Buyer Agent who has booked a showing appointment. They should tell them about the presence of a bully offer in order to see if they want to move up their showings and bring in an offer.

Sometimes a bully offer is accepted and sometimes a bully offer is rejected. This is where a Seller needs a savvy Listing Agent who can advise and manage the process.