In most areas of life, being a bully is not a great idea. But in real estate? It might actually pay off! Yup, you heard me right—being the bully or being bullied can be the winning strategy…sometimes. So let’s break it down: when does it make sense to throw your weight around, and when should you let yourself be pushed around? Let’s dive into the world of bully offers from both the seller’s and the buyer’s perspectives.

What Exactly Is a Bully Offer?

Before we get into the details, let’s clear up what a bully offer even is. First off, you can only be a bully if the seller is holding off on reviewing offers until a specific date. They list the property (usually below market value) and announce they’ll review offers in, say, a week. This tactic is designed to spark competition and drive the price up, creating a little bidding war.

For example, a house might be listed at $1,599,000, but the seller is secretly hoping for $1,650,000. It’s basically an auction, and the best offer wins. However, if you’re a bully, you don’t want to wait for offer night—you want to make your move early and take that house right off the market before anyone else even gets a chance to blink.

Should Sellers Entertain a Bully?

As a seller, the big question is this: Will I get a better deal if I wait for offer night, or should I grab the bully’s offer while it’s hot? Also, you’ve got to wonder: if I take the bully’s offer, will anyone else swoop in at the last second with an even better deal?

Rejecting a bully offer could mean you’ll see them again on offer night… but not always. Sometimes, they’ll feel snubbed and take their business elsewhere. And if they do show up on offer night, they might lowball you if the competition isn’t as fierce as they expected. It’s all a game of risk and reward.

So, how do you decide? Simple. Check how many people have toured the house. Is interest lukewarm, or do you have showings lined up all week? If foot traffic is low, that bully offer might be the best thing on the table.

And pro tip: a bully offer needs to be strong—no conditions, a hefty deposit, and ready to close the deal. Once you open the door to a bully, you can kiss offer night goodbye. The moment you notify other agents about the bully offer (yes, you have to do that), your original offer night is toast. However, don’t be shocked if another buyer rushes in with their own bully offer at the last minute.

Should You Be a Bully as a Buyer?

So, you want to be the bully? Make sure you do you right! But before you go flexing those real estate muscles, here are some key things to consider:

1. Talk to the Seller’s Agent: Get the inside scoop on what it would take for the seller to accept a bully offer. Some sellers are open to it; others are like, “Nah, I’ll wait for offer night, thank you.”
2. Do Your Homework: Make sure your offer lines up with the property’s value and can pass an appraisal. Getting a desktop appraisal beforehand is smart. Oh, and have that deposit ready to drop immediately.
3. Move FAST: Time is not your friend here. You want to give the seller as little time as possible to shop your offer around to other agents. The whole point of a bully offer is to outmaneuver your competition before they even know what hit them!
4. No Strings Attached: If you need to add conditions to your offer, it’s not a bully offer—it’s just an offer. And in this game, the fewer strings attached, the better.