What’s a Bully Offer in Real Estate?

In the world of real estate, there are a lot of terms that can be confusing for first-time buyers and sellers. One such term is “bully offer.” So, what is a bully offer in real estate? And under what circumstances should you make or accept one? In this blog post, we’ll discuss what makes a bully offer and the pros and cons of using this strategy.

What Is a Bully Offer?

Simply put, a bully offer in real estate is a pre-emptive offer. It’s an offer made on a property before the seller’s offer presentation date. The ultimate goal of a bully offer is to get the seller to accept the offer before other buyers have a chance to submit theirs.

Don’t let the language fool you – a bully offer is a perfectly legitimate way to buy a property. It’s not necessarily made with the intention of intimidating or “bullying” the seller. Instead, it’s an offer that’s made in an effort to get ahead of the competition.

Should You Make a Bully Offer?

Now that you know what a bully offer is, the next question is whether or not you should make one. As with any real estate decision, there are pros and cons to consider. Let’s explore some of the top ones below.

Pro: You May Be Able to Negotiate a Lower Price Overall

If there are multiple offers on a property, the seller is likely to go with the highest bidder. With a bully offer, you’re essentially putting your best foot forward and making an offer that’s hard to refuse. By doing so, you may be able to avoid a bidding war, allowing you to negotiate a lower purchase price overall.

Con: There’s a Risk the Offer Will Be Rejected

While a bully offer can sometimes be successful, there’s also a risk that it will be rejected outright. If the seller has their heart set on a certain price or they’re not interested in negotiating, they may not even entertain your offer. It could be a total waste of time and resources.

Should You Accept a Bully Offer?

Let’s now discuss the other side of the coin – whether or not you should accept one.

Pro: You May Be Able to Negotiate a Higher Price

If you receive a bully offer, it’s likely that the buyer is willing to pay more than the asking price. This means that you may be able to negotiate a higher purchase price by counter-offering.

Con: You Could Miss Out on Better Offers

If you accept a bully offer, you’re essentially taking that property off the market. This means that you could miss out on better offers from other interested buyers.

The Bottom Line

A bully offer in real estate is a pre-emptive offer made on a property before the seller’s offer presentation date. It certainly has its pros and cons, but it’s ultimately up to you to decide whether or not this is a strategy that you’re comfortable with. If you’re unsure, the best thing you can do is consult with your real estate agent for guidance. They’ll be able to advise you on whether or not a bully offer is right for your situation.

Still need a real estate agent on your side? We’d be happy to help! Click here to contact Hawkins/Ryerse Real Estate Group, and get in touch with a member of our team today.