Sometimes in the GTA real estate world, you can see (bad) Realtor mistakes coming and try to stop them happening.
But unfortunately it is not always possible to stop a bad Realtor being bad.
This is what happens in this story below where I’ll illustrate 2 key mistakes made by a Realtor we dealt with – that probably cost his seller client thousands of dollars.
The Background To The Story
One of our Realtors was working with a buyer client and this particular buyer client loved the units in a certain building. So the Realtor set them up with a specific property match for that building.
Now it should be noted, picking one building to focus your buying decision around could lead to a long waiting game – so they were also set-up with reports of other similar properties.
Low and behold though,that very week a place was listing in the building! The client was excited, so our Realtor looked at the details and started to do the preparation that a good Realtor should do.
Stopping Bully Offers
If you have been involved in the current GTA property market (and beyond the GTA now) you will know that bully offers are starting to become more common. It makes sense – we are in a ‘sellers market’ and one of the tools available to buyers to counteract this is making a bully offer.
A bully offer – if you didn’t know what it was – is where you make an offer very quickly after a place has been listed and in advance of any scheduled ‘offer day’.
You are basically trying to beat everyone else to the property. For this reason, you usually need to make an offer significantly above asking price.
However, if you are a good Realtor – you can anticipate this in advance and take actions to stop this.
In this case, our Realtor reached out to the selling Realtor and specifically told them to inform him if there were any bully offers on this listing.
Now – under real estate rules and regulations in Ontario – this selling Realtor is now required to inform the buying Realtor if there are any bully offers.
This is a great tactic if you are sick of losing out to bully offers – simply ensure that the selling Realtor informs your own Realtor of any offers for every property you are interested in.
A Bad Realtor Makes A Huge Mistake
So despite all the above preparation – our buyer Realtor trying to cut off the seller accepting a bully offer – guess what happened?
If you happened to guess that the selling Realtor took and accepted a bully offer without telling our Realtor then you’d be right!
Unfortunately even though this Realtor has made a huge (and illegal) mistake, there isn’t much that can be done about it – other than filing a complaint with the regulatory body.
You see, one of the great things about using Realtors to both buy and sell a home is that they have to follow the rules. And in this case the rules are clear: the selling Realtor has a legal obligation to tell the buying Realtor of any bully offers. This is the kind of protection that people trying to sell their home by themselves don’t get or even know about.
However, in this case the selling Realtor was so bad that this didn’t even matter.
So not only did he make this mistake but he also made a second huge mistake that any good Realtor would not make and that it…
You Should Almost Never, Ever Accept A Bully Offer
Especially in the current GTA market! This is simply the sign of a lazy, bad Realtor – they want to get their commission and move on without evening having to bother hosting an Open House or make any efforts to get the best possible price for their clients (i.e. do their job!).
Anybody willing to make a bully offer, is usually also willing to make the same offer a few days later – or on the offer day. So the odds of you ‘losing’ their offer are close to zero.
And then there is the fact that other people may be willing to pay more than the bully offer – except you are silencing them and not giving them the chance to speak up by accepting the first offer!
It is a classic negotiation mistake: never accept the first offer.
The Moral Of The Story: Some People Make Large Mistakes Without Even Knowing They Are Doing So
One of the reasons to use a good Realtor to either buy or sell a home is that you don’t even know the mistakes you might make. In fact, you could go through the whole transaction thinking you did a great job – without realizing that you either paid or lost tens of thousands of dollars because of some mistakes you made.
Unfortunately, dealing with a bad Realtor will not stop you making these mistakes. In fact, a bad Realtor is almost the equivalent of trying to do it yourself – they don’t even know what they don’t know.
In this case, the Realtor made 2 huge mistakes – firstly accepting a bully offer and secondly not informing other potential buyers about it – that probably cost his seller tens of thousands of dollars.
Don’t be like this seller. Don’t use a bad Realtor. At GTA Real Estate Pros we will set you up with a good Realtor in just 90 seconds at: