Chandler Man – Favstocks.com

The normal real estate system is facing some new issues since the Toronto housing sector has intensified. Many home shoppers are being caught off guard by a maneuver known as a bully offer, that has become a prevalent way to seize properties off the market in advance of a bid date. This situation has placed Realtors in a dilemma of how to effectively serve their clients while retaining consumer faith in the bidding process undamaged.

The bully offer tactic is a consequence of the bidding system presently favored to bring attention to a property by publishing a low price and opening the home for showings, however not entertaining offers until a specified date. If one of the interested buyers puts in a bully offer – which is usually higher than the moderate list price – the stipulation is that the offer be agreed to before the bid date specified on the listing.

The home owner recognizes their opportunity to move their property fast and often accepts the bully offer to cut steps out of the current sales plan. For buyers in Toronto who have spent countless hours hunting for houses and Toronto condominium listings coming across a bully offer can upset your plans.

The purchasers that respected the offer date have not been pleased when they learn that a bully offer has been signed on a home that they had been waiting to bid on. Objections have been raised, and as a consequence new policies are currently in effect for home owners contemplating bully offers.

This kind of scheme is used mostly in Toronto but purchasers of homes in other nearby regions are also seeing it. If a bully offer is made and the vendor wants to accept it, the Realtor has to call all the bid candidates and let them know a bully offer has been made so they can have the chance to make a counter bid. Despite the fact the concept is good, the reality is that most potential buyers are not able to drop what they are doing to rush to the agent’s office with all forms filled-out for a bid with such short warning. As a result, the complete multiple offer process is voided if the bully offer goes undisputed and is accepted by the home owner.

Some real estate professionals do urge their clients not to accept a bully offer, however to wait until the scheduled offer presentation because there could be a higher offer tabled by other purchasers. This method has been advantageous in a lot of transactions, however the allure of taking the bully offer and fast tracking the sale is often too tempting to turn down. The would-be buyers who are left out in the cold in spite of following the rules spelled out by the seller are beginning to be irritated by the rise in bully offers.

The bottom line is that bully offers are creating damage to the entire housing market by undermining consumer confidence in the offer procedure. Realtors are having to put intense consideration into how they can revamp the policies to keep it fair while representing their clients’ best interest.

A solution for potential purchasers might be to turn to the Wasaga Beach real estate market and steer clear of the Toronto region however that is clearly not workable. As long as the real estate glut in Toronto is affecting the bid process, purchasers are going to have to stay on their toes to counteract any bully offers that impede their opportunity to bid.

Any reputable Realtor should advise their purchasers not to be bullied into making an offer that is higher than the present market value for any property.

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Contact the Jeffrey Team for more information  –  416-388-1960

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