What Actually Works in a Multiple-Offer Situation
Here’s something a lot of buyers don’t realize: winning a bidding war and winning well are two very different things. I’ve seen people win multiple-offer situations and immediately regret it because they overpaid by $80,000 in a panic. And I’ve seen people lose offers they should’ve won because their agent didn’t present the offer properly.
The GTA market has shifted quite a bit. We’re not in the COVID frenzy anymore where every listing in Vaughan or Markham was getting 15 offers. There’s more inventory now, which means more choice for buyers. But multiple-offer situations haven’t disappeared — they’ve just become more targeted. The well-priced properties in desirable pockets of Toronto, Richmond Hill, Thornhill, and Aurora still attract competition. So you need to be prepared.
Start with the boring stuff (it’s the most important)
Before you even think about competing on a property, you need to get pre-approved. Not pre-qualified — pre-approved. There’s a difference. Pre-qualification is a casual conversation with a lender. Pre-approval means they’ve actually pulled your credit, verified your income, and given you a number you can rely on.
Why does this matter in a competitive situation? Because when you’re sitting at my kitchen table at 9 PM trying to decide whether to offer $975,000 or $1,010,000, you need to know — with certainty — what you can actually afford. Not “probably.” Not “I think so.” You need a hard number. And you need to have had a real conversation with your mortgage broker about what your monthly payment looks like at different price points.
I work with some great mortgage brokers — guys like Jeff Mudrick and Constantine Polyakov who’ve been on my podcast — and they’ll tell you the same thing. The worst time to figure out your budget is in the middle of a bidding war.
Know your walk-away number
This is where most buyers get into trouble. You fall in love with a property, you’re in a multiple-offer situation, and your agent calls to say “they’re asking for best and final.” Your heart rate goes up. You start thinking about all the other houses you lost. And you add another $25,000 because you just can’t face losing again.
I get it. It’s emotional. But here’s what I tell every buyer I work with: before we submit, we agree on a number that we will not go above. Period. That number isn’t based on emotion. It’s based on what comparable properties have actually sold for, what condition this home is in, and what you can afford without putting yourself in a bad position financially.
Agree on a maximum before submitting. Base it on comparable sales and your budget — not emotions. Stick to it no matter what. There’s always another house.
There’s always another house. I know that’s annoying to hear when you’re standing in the one you love. But it’s true. The GTA market has thousands of transactions every month. If you lose this one at a price that makes sense, you’ll find another one. If you win it at a price that doesn’t make sense, you’re stuck with that number for years.
Conditions: when to use them, when to waive them
During the peak craziness — 2021, early 2022 — buyers were routinely waiving financing conditions and home inspections just to compete. That was terrifying, honestly. I saw people buying properties they hadn’t even set foot in, sight unseen, no inspection, just to get the deal done. Some of those worked out. Some were disasters.
The market’s different now. With more inventory and fewer competing offers on most properties, you generally have room to include conditions. And I think you should use them. A financing condition protects you if your lender changes their mind. An inspection condition protects you from buying a money pit. These aren’t inconveniences — they’re safeguards.
That said, when you are in a genuine multiple-offer situation, conditions do affect the strength of your offer. A seller with five offers in hand is going to look more favourably at a clean offer than one with three conditions and a 10-day inspection period. So what do you do?
You do the work upfront. Get your financing locked down so tight that you’re comfortable waiving that condition if needed. Get a pre-inspection done before offer night — yes, that costs you $400 to $600 even if you don’t get the house, but it’s insurance against a $50,000 surprise. The goal isn’t to go in blind. The goal is to be prepared enough that you can present a strong offer without taking stupid risks.
How your offer gets presented matters
Something most buyers never think about: the listing agent is a human being. They’re sitting at a table with a stack of offers, and they’re advising their seller on which one to take. Price matters the most, obviously. But it’s not the only thing.
A clean, well-organized offer with a reasonable closing date, a decent deposit, and no unusual clauses signals that the buyer is serious and the deal will close. A messy offer — even at a higher price — makes the listing agent nervous. And nervous listing agents steer their sellers toward the safer option.
Your deposit also sends a message. In the GTA, a typical deposit is around 5% of the purchase price, but in competitive situations, going slightly higher can signal commitment. If you’re offering $1 million, a $50,000 deposit says “I’m serious and I’m not going anywhere.” A $15,000 deposit on the same offer makes the listing agent wonder if you’ll get cold feet.
And here’s a practical one that a lot of people miss: your agent’s relationship with the listing agent can genuinely matter. This isn’t about backdoor dealing — it’s about trust. When I present an offer and the listing agent knows me, knows I run a clean transaction, knows my clients are qualified — that gives the seller confidence. It’s the same reason you’d trust a referral over a stranger. Reputation is currency in this business.
The shift you need to understand
Right now, the GTA market has more balance than we’ve had in years. Interest rates have come down from their peak, inventory has increased, and buyers have more negotiating power than they did during the pandemic. That doesn’t mean competition is dead — it just means it’s concentrated.
Properties that are priced right, show well, and sit in strong neighbourhoods will still attract multiple offers. Everything else — and there’s a lot of everything else right now — is negotiable. So the strategy has to adapt. Instead of just learning how to win bidding wars, smart buyers are learning when to compete and when to negotiate.
Sometimes the best deal isn’t the house with 12 offers. It’s the one that’s been sitting for 30 days because it was overpriced at launch, and now the seller is willing to talk.