Real Estate

Listing with: No offers will be reviewed until....."

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  • Jul 20th, 2020 12:42 pm
[OP]
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Mar 28, 2005
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Cornwall, Ontario

Listing with: No offers will be reviewed until....."

I lately see a lot of listings which include this type of comment in the description:
As per Sellers directions - no offers will be reviewed until July 21st, 2020 at 6 PM
What is that all about?
I don't ever recall seeing that type of comment before - almost sounds as if the seller is expecting people to bid on the property.
Seems to have started with COVID-19 which I assume affects open houses and showing of real estate.

BTW - this is in Cornwall, Ontario, not exactly a hot housing market
18 replies
Sr. Member
Jan 22, 2012
645 posts
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Bradford
Common in Toronto and in hot markets.
It’s to try and produce multiple offers and get above asking price. With more people moving away from Toronto, and it being a sellers market, more listings will do this.
My friend listed today and had 18 showings booked by noon and will wait for a few days for offers.
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Nov 5, 2018
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Sellers market.
Called the bottom.
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Jan 6, 2002
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It's meaningless.. An offer can be put it at any time, and the agent has to present it to the seller and have them reject it if they don't want it. Standard bully offer dance clause: "we won't review offers until <date>. But of course if we get an offer we like before <date>, of course we will review us. Come at me, bro!"
Si Tacuisses, Philosophus Mansisses
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Sep 2, 2009
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hoob wrote: It's meaningless.. An offer can be put it at any time, and the agent has to present it to the seller and have them reject it if they don't want it. Standard bully offer dance clause: "we won't review offers until <date>. But of course if we get an offer we like before <date>, of course we will review us. Come at me, bro!"
Mostly meaningless. Without the seller signing a Form 244, the agent has to present all offers. With the form signed, the agent could selectively not present certain offers; at that point it would depend how 'good' the bully offer is.

I have seen listing that specifically state that bully offers will be ignored (this was even before COVID).
[OP]
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Mar 28, 2005
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Thanks for the comments.
I actually had to look up the meaning of a "bully offer" - last time I sold and then bought a house was 5 years ago. at that time, at least in Montreal and Eastern Ontario, there was no such thing.

Reading something like:
As per Sellers directions - no offers will be reviewed until July 21st, 2020 at 6 PM
actually turns me off as a buyer.
Deal Guru
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Jun 26, 2005
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As someone pointed out, a buyer can counter this by putting in a good offer and say.

Tell me yes or no within 24 hrs, and I will NOT be at there on July 21.

Seller now has to gamble, think... hmmm will there be better offers on July 21 ? If no, then this is the best I'm gonna get.

My realtor has told me lots of buyers got the house days before their fake July 21 deadline. Sellers cancels July 21 before it happens.

That's a bully offer
[OP]
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Mar 28, 2005
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I just feel I'm being manipulated which turns me right off.

Are people really that desperate to get a house?
I can't imagine that one would get a bargain that way - the buyer probably overpays

Everytime I sold and bought a house (5 years ago) there was a fair amount of back and forth on various things.
Member
Jan 27, 2018
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It's also part of the psychology on the seller agent on the seller to get a deal done. I got you all possible offers possible by X date (which is mostly true), this is fmv and best price (which may not be true), sell your house (so I can pocket your commission).

We need more transparency in the whole process (e.g., 50yrs ago, stock/commodities/livestock/produce) was traded w/o transparency, and the ppl that benefited were trading houses (agents) and the losers were the actual buyers/sellers. We need legislation reform to open up and make the whole process standardized and transparent.
[OP]
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Mar 28, 2005
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It's the timing that really gets me.

Brand new mls listing on July 17 and they expect all offers to be in by the 21st?

If the seller accepts one of them, the agent just made a ton of money for minimum work.

What is the current situation re the obligation of the seller to accept an offer.
I remember reading if the seller's agent brings a customer who is willing to pay the asking price (or more) and has no conditions, the seller has to accept that offer, or if not, still pay the agent their fee.
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Feb 19, 2019
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krs wrote:
I remember reading if the seller's agent brings a customer who is willing to pay the asking price (or more) and has no conditions, the seller has to accept that offer, or if not, still pay the agent their fee.
That's not correct, the seller is under no obligation to accept any offer and no commission is payable.

If the deal has been reached and the buyer or seller breaches the contract, that's a different story.
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Jan 2, 2012
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krs wrote: What is the current situation re the obligation of the seller to accept an offer.
I remember reading if the seller's agent brings a customer who is willing to pay the asking price (or more) and has no conditions, the seller has to accept that offer, or if not, still pay the agent their fee.
There is zero obligation for seller to accept any offer.
In addition to the offer date way, another strategy is to list the home $100K+ LESS than what you actually want. Aim is to get more people to viewings, and hope some start a bidding war to drive the price up higher to your actual desired price and beyond. Obviously if someone offered the fake asking price, seller is under no obligation to accept it.

For offer date strategy, this has been commonplace in the GTA for many many years now while it's been a sellers market.
[OP]
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Mar 28, 2005
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Not what it says here for instance:
However, if an offer is made for the full asking price, and the seller refuses, and the sale never happens, the selling realtor can now expect full commission on it, as he did find a buyer for said house, at full price, and it is up to the owner to pay them.
https://forums.beyond.ca/archive/index. ... 83553.html

(BTW - This is just the first google hit that comes up...from someone whose dad was in the business.)

Makes sense to me - the selling agent has met his/her obligations and should be paid for that.

Otherwise the seller could just put the house on the market for $100K less than market price to see how high the bidding will actually go, then not sell (never had any intention of selling, just wanted to test the market) and the agent is left out in the cold after having spent effort and money on the listing.
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krs wrote: Not what it says here for instance:


https://forums.beyond.ca/archive/index. ... 83553.html

(BTW - This is just the first google hit that comes up...from someone whose dad was in the business.)

Makes sense to me - the selling agent has met his/her obligations and should be paid for that.

Otherwise the seller could just put the house on the market for $100K less than market price to see how high the bidding will actually go, then not sell (never had any intention of selling, just wanted to test the market) and the agent is left out in the cold after having spent effort and money on the listing.
Actually there is something also here that states the same: https://www.remonline.com/court-rules-c ... must-paid/

The key point though is wording of the Buyer Representation Agreement. The BRA would need to specifically state the agent is owed commission upon receipt of an offer at asking price, not for a firm sale. I don't think such wording exists in most residential real estate BRAs, though I'm sure an agent who deals with BRAs more can advise better. Personally I as a seller would never work with a realtor who demanded this.
[OP]
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Mar 28, 2005
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rob444 wrote: The key point though is wording of the Buyer Representation Agreement. The BRA would need to specifically state the agent is owed commission upon receipt of an offer at asking price, not for a firm sale. I don't think such wording exists in most residential real estate BRAs, though I'm sure an agent who deals with BRAs more can advise better. Personally I as a seller would never work with a realtor who demanded this.
Aren't the BRA's pretty much standardized?
Last house I sold was in Montreal and the impression I had was that the agreement with the real estate agent was not only standardized, but there was a limit on what kind of additional clauses one could add.

That was in Quebec - they have stronger consumer laws than Ontario.
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Mar 15, 2005
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krs wrote: I lately see a lot of listings which include this type of comment in the description:


What is that all about?
I don't ever recall seeing that type of comment before - almost sounds as if the seller is expecting people to bid on the property.
Seems to have started with COVID-19 which I assume affects open houses and showing of real estate.

BTW - this is in Cornwall, Ontario, not exactly a hot housing market
Holding offers means they want either a bidding war with a captive crowd or potentially looking for a bully offer prior to review
Deal Addict
Dec 25, 2005
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This strategy sometimes backfires on sellers. My anecdotal evidence is that I once put a "bully offer" on a house that was well over asking and had no conditions. I was told "thanks but no thanks, the seller is waiting until the specified offer date". I moved on to other properties and didn't put in another offer on the offer date. I later saw that the property sold to someone for quite a bit less than I had offered (and with conditions, I believe).

I've also seen the rather awkward situation where the seller gets no offers (or at least none they deem acceptable) and you see the property continue to be listed well after the "offer date".
Jr. Member
Aug 21, 2017
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"Ton of money for minimum work" - that's what realtors do these days. Just look at how many realtors there're in this forum lol.
krs wrote: It's the timing that really gets me.

Brand new mls listing on July 17 and they expect all offers to be in by the 21st?

If the seller accepts one of them, the agent just made a ton of money for minimum work.

What is the current situation re the obligation of the seller to accept an offer.
I remember reading if the seller's agent brings a customer who is willing to pay the asking price (or more) and has no conditions, the seller has to accept that offer, or if not, still pay the agent their fee.
[OP]
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Mar 28, 2005
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Cornwall, Ontario
Nukey wrote: I've also seen the rather awkward situation where the seller gets no offers (or at least none they deem acceptable) and you see the property continue to be listed well after the "offer date".
I have been looking at properties for several months now - looking for something very specific - and I have not seen any property selling very quickly here in Cornwall.
Some are on the market for months, then the listing disappears and comes back a few months later.
When I check if that property was actually sold, it turns out that it wasn't - the seller just took it off the market.

I'm going to check this particular one I posted about - not that it meets my criteria, just to see if it actually sells in the next few weeks.

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