Understanding Multiple Offers in Toronto
Multiple offers—when several buyers submit bids simultaneously—have become common in Toronto's desirable neighbourhoods. While less frequent than the 2021-2022 frenzy, competitive situations still occur regularly for well-priced, well-located properties. This guide shares strategies to help you win.
When Multiple Offers Happen
Multiple offers typically occur when:
- Property is priced strategically (sometimes below market)
- Location is highly desirable
- Condition is move-in ready
- Listing hits market at peak times (spring, early fall)
- Days on market are limited (often 'offer date' set)
Preparation is Everything
Get Pre-Approved (Not Pre-Qualified)
A full pre-approval with conditions removed shows sellers you're serious and capable. Get this done before seriously shopping.
Know Your Budget—Including Your Max
Before entering competition, know your absolute ceiling. Emotional bidding beyond your means leads to regret.
Assemble Your Team
- Realtor: Experienced in negotiations, knows the market
- Mortgage broker: Can pivot quickly if needed
- Lawyer: Available for quick turnaround on reviews
Making Your Offer Stand Out
Price: The Foundation
In competitive situations, price remains paramount. Strategies include:
- Odd numbers: $1,257,500 beats $1,250,000 in ties
- Market analysis: Understand comparable recent sales
- Escalation clauses: Rarely used in Toronto but discuss with your agent
Deposit: Show Commitment
- Standard deposits are 5% of purchase price
- Larger deposits (10%) signal strong commitment
- Certified cheque or bank draft preferred
Conditions: Evaluate Carefully
Conditions give you exit rights but weaken your offer:
- Financing condition: Often waived with solid pre-approval
- Inspection condition: Consider pre-offer inspection instead
- Sale of property condition: Almost always rejected
Waiving conditions is risky. Never do this without understanding the implications.
Closing Date: Flexibility Wins
Accommodating the seller's preferred timeline costs you nothing but can tip decisions. Ask your agent to find out seller preferences.
Pre-Offer Inspection Strategy
To remove the inspection condition while protecting yourself:
- Before offer date, arrange inspection ($400-$600)
- Inspect the property before submitting offer
- Submit firm offer with confidence about condition
Risk: You pay for inspection on properties you don't win. But this investment often provides competitive advantage.
Writing Compelling Letters
Buyer letters can influence sellers emotionally. While effectiveness varies:
- Keep it brief and genuine
- Connect with the property (why this home?)
- Share a bit about yourself (without oversharing)
- Avoid anything that could lead to discrimination claims
On Offer Night
What to Expect
- All offers presented simultaneously or in order received
- Sellers may accept, counter, or ask for improvements
- Process can take hours
- You may be asked to 'improve' your offer
If Asked to Improve
Sellers sometimes give all bidders opportunity to improve. Decide in advance:
- Your improvement ceiling
- Whether you'll participate in multiple rounds
- Walk-away point
Bully Offers (Pre-Emptive Offers)
A bully offer is submitted before the scheduled offer date, usually irresistible enough that the seller accepts immediately.
Bully Offer Requirements
- Significantly above expected price
- Firm (no conditions)
- Short irrevocability (24-48 hours)
- Accommodating closing date
Sellers aren't obligated to present or accept bully offers. Success rate varies.
When to Walk Away
Sometimes the right move is not bidding:
- When price exceeds your comfort zone
- When too many conditions must be waived
- When the process feels wrong
Another property will come. Overpaying or taking unacceptable risk isn't worth any single home.
After a Loss
Losing bids is frustrating but normal. Learn from each:
- Ask your agent for feedback from listing agent
- Understand where your offer fell short
- Refine strategy for next time
- Don't let emotion drive overpayment on next property
Contact us to develop a winning strategy tailored to your target neighbourhoods and budget.
