Multiple Offers Explained - Bosley Real Estate Ltd. Brokerage - Homes and houses for sale in Toronto including Cabbagetown, The Annex, Danforth Village, Lawrence Park and Riverdale

The process of selling or buying a property can often seem like a daunting task. Throw in the possibility of a competing offer situation, and we see stress levels rise dramatically! Let us explain.

A multiple offer situation occurs when there are multiple Buyers bidding on one property. This tends to happen more frequently in a Sellers market where listings are scarce or with unique and very desirable properties. In these situations, there are many ways the Seller, in combination with the Selling agent, may structure the review of all offers. Now, there are many differing strategies that Realtors will often use to spur a multiple offer situation for a Seller which are discussed in our Selling Strategy video. Today, we are discussing how best to win in a multiple offer situation as a Buyer. It is simple.

1. It is crucial that Buyers play by the Seller and Selling agents ground rules. This often shows collaboration and respect to the listing side which always starts any negotiation on the right foot. Are the Sellers expecting everyone to bring their best offer? Is the intention to review everyone's offer and continue negotiating with the top bids? Has your Buyer's agent been property informed with everything the Seller is hoping to achieve? 

2. Bring a bank draft! If you show up to a multiple offer situation with no deposit, it allows an opportunity for another party to one up you. A bank draft shows the Seller you are serious, willing and able.

3. Do your due diligence before offer night. If there is a status certificate available, have your lawyer review it! If there is a home inspection provided by the Seller that may not be satisfactory to you, do you own BEFORE offer night. Have your financing locked down. Completing your due diligence will allow you to contend with a firm and binding offer which is what every Seller wants to see.

4. Offer the most money. If you are holding some back to paint the property and the next bidder wins by $2,000, will you be upset? If the answer is yes, add the money to your offer price. It is not ALWAYS about more money, but more often than not, the two top offers come down to a mere few thousand dollars.

5. Have trusted, reliable, knowledgeable and respected representation! You are almost guaranteed to have a shot at winning if your Realtor is actually willing to present your offer in person - especially if they are a local expert. A local expert is more likely to have good relations with local representatives. 

At the end of the day, #5 is the most crucial in your process. The multiple offer process can often be wrought with grey areas as there is no set, pre-determined strategy and every situation differs. Do yourself a favour when purchasing your largest investment and hire Bosley! Contact us today.