In real estate, especially in a sellers real estate market you’ll likely hear the term “bully offer”. It’s also referred to as a “pre-emptive offer” and it’s intention is for a buyer to cut the line to get a house that you want. Of course, this strategy is only relevant in a strong sellers market, not a balanced market like we find ourselves in for 2025.

What is a bully offer?

A bully offer is an offer made in advance of a scheduled offer date. It’s an aggressive attempt by a buyer to bypass the offer date and get a contract with the seller by making an irresistable offer on the property.

An example of a bully offer

As home buyers, you see a new home that you really love. It has all the colours, the layout is perfect. It’s within your budget and in your ideal location. But there is one problem: they’re holding offers and reviewing all offers on in a week. Crap. You just want the house and you don’t want to compete for it.

Your mind swirls: everyone you know will be looking at this house for the next week.  There will be open houses. Twenty people will put offers and it will likely sell way above your budget.

Unless you submit a bully offer and try to lock up the house before the offer day….

There are some rules of engagement with bully offers

One of the key things we advise our client in negotiation is to consider the other parties position (in this case, the seller). They’ve worked hard to get their house ready to sell. It’s been stressful. It’s been costly.

If they are holding offers in anticipation of a bidding war and selling over the asking price, you need to make your offer very attractive. There are no “deals” to be had when you are trying to push your way  to the head of the line.

So, as the buyer, you need to consider the sellers position. Logistically it makes no sense for a seller to accept a bully offer that has conditions of inspection and financing for 5 days.

A bully offer in real estate shouldn’t have offer conditions (or contingencies for US readers)

An effective bully offer needs to be “condition free” (otherwise known as a firm offer) if the buyer is serious about buying the house.

Think about this: A seller puts their house on the market on Thursday and reviewing offers on Tuesday.

On Friday, you (the buyers) put in a bully offer but don’t have your finances in order.

Therefore,  you ask for a 5 business day financing condition and home inspection in order to make an informed decision.

This doesn’t make any sense. If the seller was to accept your conditional offer, they would now miss out on any offers. On Tuesday, they may receive condition- free offers.

From the sellers perspective, this is not a good idea.  They could be missing out on a better offer from interested parties.

And besides, what happens if you, as the buyer, can’t get the right mortgage sorted out with your mortgage broker?

The way conditions are written, buyers can walk away for any reason related to financing without penalty.

This could even mean they walk away just because they couldn’t get the mortgage rate they wanted.

The house would go back on the market and the seller would lose all leverage in a hot market.

The home seller original plan of a holding offer strategy is completely ruined. They would have been better to just reject you and wait until offer day.

A bully offer in real estate has to be equal to, or better than the selling price that the seller would get on offer day

If a seller receives a bully offer in advance of their set offer day, they have to weigh the risk. Such as, do they accept your offer before the offer presentation date and move on?

Or do they think that perhaps there has been a lot of interest from potential buyers.

It may be in their best interest to wait it out until offer day. They may receive something better than the list price from all the interested buyers.

Many buyers think that bully offers may save them money. But that’s not what a bully offer is.

In fact, it’s the opposite- you’re likely not getting a lower price than asking.

You need to give the seller a premium to market value. Or, what they think they may get on offer day as an incentive to accept your offer.

Otherwise, what’s the point of even presenting a bully offer?

What you can do is give them little time to reply to your bully offer- sometimes 2 hours or less.

You don’t want to give the seller’s agent or sellers enough time to shop your offer around to other agents to get competing offers.

What’s the advantage of a seller to review a bully offer?

As mentioned above, it’s stressful and quite inconvenient to sell your home. In fact, many consider selling and moving among the most stressful times in a persons life.

A seller has to prepare to put their house on the market for 7 days. During that time, they deal with having to leave on a moments notice for a showing.

Additionally, keeping the house impeccable the entire time. Strangers walking through the house, traffic for your neighbours. It’s a lot to take on.

It’s possible that the seller is thinking “perhaps an amazing offer comes in early! I can just be done, sell my house and I can move on with life!”

Does a seller have to accept a bully offer?

No. Just because a buyer wants to submit a bully offer doesn’t mean a seller has to accept it. Especially in today’s market of regular listing cancellations, the seller always has the final call.

The buyers Realtor should do a bit of pre-work here to figure out the sellers position. This likely means getting in touch with the listing agent.

There’s no point in even discussing a pre-emptive offer if the seller has given clear instructions that they won’t review it.

In the Ontario Real Estate Association, , there is a form 244- Sellers Direction.

This form outlines just this- the sellers specific instructions and direction on offers.

Sometimes, the seller will outright say on this form: “pre-emptive offers will not be considered”.

This form is used in real estate transactions and signed by the sellers.

This ensures that everyone understands the situation and that no one has an unfair advantage over someone else.

How do I submit a bully offer?

Talk to your Realtor. They should be able to guide you in the right direction so that you can submit an effective bully offer.

Remember: a seller doesn’t have to accept it. So, if you present it, you’ve just played your hand to them about how interested you are.The best way to lock up a house? Work with  Guelph Real estate agents who know the local market.

If you have further questions, feel free to contact Beth and Ryan Waller with Keller Williams Home Group Realty