If you’ve been keeping up with the real estate market (and if you’re thinking about selling your home, you probably are), then you’ve probably heard of bully offers. What are they exactly? Simply put, it’s when a buyer brings the seller an offer before the offer presentation night, so that they can avoid being stuck in a bidding war and potentially losing the home when all the offers come in. If the seller accepts it, then the buyer purchases the property ahead of everyone else even having a shot at it.
So, if you’re selling your home, and you get presented with a bully offer, should you accept it? Maybe, maybe not. Here’s what you should know:
When It Might Make Sense
Personally, I would only advise my clients to accept a bully offer if it’s substantially over the asking price. Assuming the home is priced at market value, a bully offer would have to be at least $50K over the asking price for me to recommend to my clients that they at least look at it.
When To Avoid It
If it’s not much higher than the asking price, then it makes sense to turn it away. Why? You have a much better chance of getting more money if you have an offer presentation night. But be careful not to get too greedy. I’ve personally presented a bully offer to a seller on my client’s behalf, which the sellers turned down, only to have the home sell for less than our bully offer on the offer presentation night after my clients decided they no longer wanted to bid on it.
Leave It to a Professional
In the end, it’s up to you whether you accept a bully offer or not, but the best advice I can give you is that you should check with your real estate agent. A good, professional real estate agent with a lot of experience should be able to tell you if the bully offer is worth considering or turning away.
Have your own experiences with bully offers? If so, I’d love to hear about it in the comments below.