Before I explain bully offers, let's talk about the two selling strategies a home seller has.
The first option is to list the home or the condo at market value, and then wait for the offers to come in, and then you can negotiate from there. That's pricing the property at market value, or a little bit higher, and then negotiating.
The second option is under pricing it. Let's say the market value is $500,000, then the seller lists it for $449,000 and they hold back offers. That strategy is designed to generate a lot of interest, and then the seller would look at all offers on one specific date, which is the offer presentation date.
In some cases, the seller's might entertain preemptive offers, or bully offers. In these specific cases, a buyer could say, "You know what, I'm not going to wait until next week to present my offer. I really like this home. I really like this condo and I've lost out on multiple offers. I'm a little bit frustrated. This is a place that checks off all my criteria and I'm just not going to wait. I'm going to go in early."
They put in a pre-emptive, or a bully offer.
A bully offer is an offer that is provided, or given to the home seller, prior to the set offer date.
I hope you found this explanation to be helpful, and please, if you have any questions about the home buying process, feel free to connect.