Mastermind for May 30th. More on Bully Offers
Happy Hump Day. I hope you are getting through it with flying colours. With this weather, what’s not to like? For us at Bosley Real Estate, Wednesdays are Mastermind Days. We believe in the power of inter-office discussions so much that we actually hold two per week, one Uptown and one Downtown. Great discussions every week, so if you missed today, you missed some great conversations follow-up discussions about Bully offers. So let’s get started.
If you are a buyer these days, chances are you are feeling the fatigue of the chase. It is getting tough out there and I have talked about some interesting ways buyers are trying to get any added advantage. This post will touch on one. One such advantage, potential as it may be, is to have your agent try to submit an offer ahead of the offer date. This is known as a Bully Offer. You have to know your stuff to either make a Bully Offer or to present one to your clients. The discussion at Mastermind today centred around whether or not you disclose the contents of the offer before presenting. Lets say an agent wishes to submit a Bully Offer. The listing agent asks what the terms are but the buying agent doesn’t want to say. We have been taught not to talk price before the presentation but Bullys are a little different. Our group agreed that they would communicate the details of the offer to the client before presentation. Here’s the thinking on that. If I have a listing and you call me with a Bully Offer, I want to know that it is worth my client’s time. If the house is $499k and your Bully is for $640K I will go to the end of the Earth to get this information to my clients. For a Bully of $520K I will still try to find them but I probably won’t recommend that they take the time to look at it. We also talked about agents who say they can’t get in touch with their clients. Do you actually expect me to believe that your clients cannot be reached? Today? Seriously? No phone? Seriously? That just doesn’t fly (unless they are actually flying, but most likely they will touch down in the next few hours). So when they say they can’t be reached, what the agent is really saying is “I don’t really want to work tonight to get the best price for my client”.
The take away on this is pretty simple and goes back to something that I focus much of my energy on. Give your clients all the possible scenarios when you list their home. Let them know that the house might not sell on offer day, it might sell in multiple offers, or they might get a Bully offer. Outline the disadvantages and advantages of each situation and let them decide what to do. If the clients categorically do not want to look at offers BEFORE the date set for offers, have them put it on paper. Scan it and send it to your phone so that you can forward it to potential Bully Offer agents. Simple. Yes, it is a lot more work, but you need to be prepared for any eventuality.