I’ve talked about Bully Offers before (Be True to Your Word. Say No to Bully Offers.), but apparently they really rankle me because I keep wanting to talk about them.

Quick refresher: Bully offers are also sometimes referred to as pre-emptive offers or early offers. They work like this: A new home comes on the market on Day 1. The sellers stipulate that they won’t look at offers until Day 7. On Day 2, a buyer makes them an offer with a price that’s so much higher than list price that the sellers feel bullied into accepting it for fear of never seeing that price again. Bully Offers don’t contravene any rules that govern our industry. They’re perfectly acceptable because the rules are designed to allow buyers and sellers to make and review offers at any time. It’s just that Bully Offers rankle ME.

Most of the time, Bully Offers lay dormant in the recesses of my brain, but every now and then when I hear a story they come back to life. I’ve heard two such stories in the past week or so. Neither one of which involved my clients, but they came from very reliable sources so I believe they’re true.

In the first story, Seller A listed her home for $1,000,000. She said she’d look at offers on Day 7. She received three Bully Offers before Day 7. They were all for above $1,000,000. Her reply: “Thanks but no thanks. I’ll look at offers on Day 7.” She received multiple offers on Day 7 and accepted the highest one which was for $1,300,000 from a buyer who hadn’t made a Bully Offer. Things worked out well for Seller A.

Seller B wasn’t so fortunate. He received Bully Offers, but didn’t accept them because he wanted to wait for offer day. Sadly, the buyers who made the Bully Offers decided not to offer on offer day. He ended up receiving only one offer and sold his house for less than the price of the Bully Offers.

Can you guess why Bully Offers bother me? It’s because I think they’re wrong. Not wrong in the sense that they violate any rules of conduct that govern our industry, because they don’t, but morally wrong.

Nowadays, when a new listing comes out in central Toronto it often contains the words “Offers gratefully reviewed on Tuesday May 19. Sellers reserve the right to consider pre-emptive offers.” Do you know what that means? It means “We won’t look at offers until Tuesday May 19 so you have a few days to see our home and decide if you’d like to buy it unless someone makes us an offer before Tuesday May 19 that we like in which case we may accept it.” Keep in mind as I said before that this doesn’t violate our real estate rules in any way. But remember – there are rules and then there’s The Golden Rule – Do Unto Others As You Would Have Them Do Unto You – and I believe Bully Offers violate The Golden Rule. I can’t call them dishonest, but that’s the word that comes to mind when I think of them.

If someone tells you they won’t look at offers until May 19, shouldn’t they wait until May 19 to look at offers? Or if they’re willing to look at an offer before then, shouldn’t they tell you they’ll look at offers anytime? Isn’t that the way you’d like to be treated if you were buying a home? So why do some people forget about this when it comes time to sell their homes?

When I meet with clients to discuss selling their homes, one of the things we talk about is Bully Offers. I explain the pros and cons to them, share my opinion with them and then leave it to them to decide whether or not they’d like to review Bully Offers. I’m their agent and follow their instructions even if I don’t agree with Bully Offers because they’re still acting within the rules. Almost every single one of my clients instructs me that they will not accept a Bully Offer. They say that if they’re telling people they won’t look at offers until offer day then the right thing to do is to wait until offer day.

When buyer clients want to make a Bully Offer, I explain the pros and cons, share my opinion and let them decide if they’d like to proceed with a Bully Offer. It’s my job to follow their instructions and do the best I can to help them achieve their goals.

I’m not implying I’m perfect because if a client instructs me to proceed with a Bully Offer I follow those instructions. And I’m not casting aspersions on any sellers, buyers or Realtors who engage in Bully Offers because they don’t contravene any rules. It’s just that they violate my own personal code of conduct. All I can say is this: Whether you’re a buyer, a seller or a Realtor, ask yourself this question when it comes to Bully Offers: Are you okay with following the letter of the law or would you prefer to bask in the glow of The Golden Rule?

In 1995 I started Advocate Realty because I wanted to make sure things were done in a certain way. I’m a very particular guy, as you probably know. At times like these, I find myself wondering “Hmmm, maybe it’s time to create a whole new real estate system so I can make sure things are done in a certain way.” For a start, I’d require all properties to be on the market for seven days before offers could be reviewed. This would ensure that sellers get maximum exposure for their properties and buyers have enough time to make an informed decision. But that’s a subject for another day.