In the fast-paced landscape of Ontario real estate, you’ve likely seen the common sales strategy: a new listing hits the market with an attractive price and a note that says, “Offers will be reviewed on Tuesday at 7:00 PM.” This is a clear signal that the seller is hoping to generate a flurry of interest, culminating in a multiple-offer situation—or a full-blown bidding war.

But what if you, as a determined buyer, don’t want to wait and compete with the crowd? What if you want to force the seller’s hand and end the competition before it even begins? This is where an aggressive, high-stakes strategy known as the “bully offer” comes into play. It’s a pre-emptive strike designed to be so compelling that the seller simply cannot afford to wait. This guide will explain what a bully offer is, what makes one successful, and the significant risks involved.

Defining the “Bully Offer”

A bully offer, also known as a pre-emptive offer, is a formal Agreement of Purchase and Sale submitted by a buyer before the seller’s scheduled date for reviewing offers.

The term “bully” doesn’t imply rudeness or aggressive behaviour. Rather, it refers to the overwhelming strength of the offer itself. The goal is to present a bid so strong in its price and terms that it effectively “bullies” the seller into abandoning their original plan of waiting for a bidding war. The buyer is essentially telling the seller: “This offer is likely better than anything you’ll get on offer night. Take it now, or risk losing it forever.”

The Anatomy of a Winning Bully Offer

A bully offer cannot be timid. To be successful, it must be exceptional and address every potential seller hesitation. It typically has four key ingredients:

1. A Phenomenal Price: The offer price must be significantly over the asking price. It needs to be high enough to make the seller and their agent seriously question if they could achieve a better result by waiting. This isn’t just a few thousand dollars over asking; it’s a number designed to make their eyes widen.

2. A Firm, No-Conditions Offer: The most powerful bully offers are almost always firm offers in Ontario. This means there are no conditions for financing, home inspection, or anything else. By removing all conditions, the buyer provides the seller with absolute certainty. A conditional offer rarely has the strength to succeed as a pre-emptive bid because it leaves the seller with uncertainty—the very thing a bully offer aims to eliminate.

3. A Substantial Deposit: A large deposit, often 5% or more of the offer price, demonstrates immense financial strength and commitment. It signals to the seller that the buyer is serious and has the resources to close the deal.

4. A Very Short Irrevocable Period: A bully offer must force a quick decision. The irrevocable period—the time the seller has to accept the offer—is typically just a few hours. This is a critical part of the strategy. It gives the seller enough time to review the offer with their agent but not enough time to “shop” it around to other potential buyers to solicit better bids.

The Rules of Engagement: How Bully Offers are Handled

The process for handling pre-emptive offers is strictly regulated in Ontario to ensure fairness.

First, a seller can provide their listing agent with written instructions (OREA Form 244) to hold off on reviewing any offers until the specified date. If such a signed direction exists, the agent is prohibited from presenting your bully offer to the seller, and your attempt will be unsuccessful.

However, if there is no such written instruction, the listing agent is obligated by a code of ethics to present all offers to the seller as soon as possible. When they receive a bully offer, they must immediately notify every other party who has expressed an interest in the property (i.e., any agent who has booked a showing or inquired about the property). This notification informs them that an offer has been received and is being presented to the seller.

This can have two outcomes:

  1. The seller accepts your incredible offer, and the house is sold to you.
  2. Your offer triggers other buyers to quickly submit their own offers, effectively moving the “offer night” up and creating the very bidding war you hoped to avoid.

The Risks for the Bully Buyer

While the reward is winning the house, the risks of this strategy are significant.

  • You Might Overpay: You are essentially negotiating against yourself. You have to guess what number will be “too good to refuse,” and you could end up paying tens of thousands more than what might have been necessary to win in a standard bidding war.
  • It Can Backfire Spectacularly: If the seller rejects your offer, you’ve shown your hand. The seller now knows what a serious, top-dollar buyer is willing to pay, and they can use your offer as the new “floor” when negotiating with others. You may have just set the starting price for the competition.
  • You Assume All the Risk: Because most bully offers are firm, you are taking on all the immense risks of waiving your financing and inspection conditions. You must be absolutely certain about your mortgage pre-approval and have ideally conducted a pre-offer home inspection to mitigate this risk.

A bully offer is a high-risk, high-reward tactic for confident and well-prepared buyers. It is an advanced strategy that should only be deployed with the guidance of a seasoned real estate agent under a Buyer Representation Agreement (BRA). They can help you analyze the market, gauge the seller’s potential motivation, and craft an offer that is strong enough to succeed without needlessly overpaying. It can be the key to avoiding the chaos of offer night, but you must be prepared for the price of admission.