Bully Offers.. good or bad?
Many real estate experts in Toronto think that bully offers should be banned by the province. Their reasoning…that these bully offers give a specific group of home buyers a significant and unfair advantage.
If you don’t know what a bully offer is, it’s simply an offer submitted by a buyer ahead of a seller's established pre-set offer acceptance date, a move almost always intended to avoid competing with other buyers offers and put some early pressure on the seller into accepting the bid.
Many real estate professionals in the GTA agree that banning the practice would help to ensure that all interested buyers are able to make a fair offer on a home and allow sellers to carefully consider all bids, not just a single bid.
This suggested change is part of a long list of changes that have been submitted last year through the GTA area realtors association who have asked the province to review the entire Real Estate and Business Brokers Act which was put in place way back in 2002.. saying the legislation needed to be updated to allow for more transparency for buyers and sellers.
The association is also asking the government to ban escalation clauses in offers, which are designed to defeat any competing purchase offer by automatically increasing that offers purchase price by a certain % over the next highest submitted offer. Also being requested are more education programs that require in-class training to help raise professional real estate standards. Today most of the courses provided to realtors are done online and are offered in a simple watch and click style curriculum.
This type of higher class education would allow for much more specialization for real estate agents, allowing them to be recognized as experts in specific areas such as specialists in condominiums, industrial and rural, or waterfront properties each of which require a much different type of knowledge and overall expertise.
Remember, If you are looking for help buying real estate in the GTA, selling or investing in real estate... myself and my real estate team are here to help. We specialize in real estate in Aurora, real estate in Newmarket, real estate in Richmond Hill and real estate in Vaughan, but we do cover the entire GTA. We also help with investing in real estate in pre-construction condominiums or new home subdivisions.