Multiple Offers in 2026
How to Win (or Avoid) a Bidding War in the GTA
When competing offers appear, rational thinking is usually the first casualty. Arthur Zhao walks you through the complete decision framework: when to enter a bidding war, how pre-emptive offers work under REBBA, and how the rules change in a buyer’s market.
Arthur Zhao · Real Estate Broker · FRI · ABR · SRS · MCNE · E-PRO · GUILD Elite
VP & Branch Manager, Bay Street Group Inc.
What exactly is a multiple offer situation — and what does Ontario law say about it?
A multiple offer situation occurs when two or more buyers submit written offers on the same property simultaneously or within the same offer presentation window. Under REBBA (Real Estate and Business Brokers Act) and RECO’s Code of Ethics, the seller’s agent is legally prohibited from disclosing the contents or exact pricing of competing offers. Buyers compete entirely blind — they see no other offer, only the number of registered offers if the seller’s agent chooses to disclose.
According to TRREB (Toronto Regional Real Estate Board, 2026), even in the current buyer’s market, desirable detached homes in the 905 area codes — Markham, Richmond Hill, Oakville, and Mississauga — still attract 2–4 competing offers on properly priced listings. Knowing how to navigate this situation calmly is one of the most valuable skills a buyer can develop.
This is the question every buyer should ask before offer night. The honest answer: sometimes yes, sometimes no. Here is the complete picture.
Reasons to Compete (Pros)
✓ You can still win at a fair price if you’ve done your comparables research
✓ Competition confirms the property is desirable — better future resale liquidity
✓ Winning locks you in immediately — no more weekend showings
✓ In 2026’s buyer’s market, premiums are modest (3–7%) — not the 15–20% of 2021
Reasons to Walk Away (Cons)
✗ Competitive emotion drives buyers to overpay beyond real market value
✗ Pressure to waive conditions (inspection, financing) raises financial risk
✗ You’re bidding blind — no visibility into what competitors are offering
✗ Losing bids can cloud judgment and make buyers reckless on the next offer
What happens when a buyer submits an offer before the seller’s scheduled offer date?
A pre-emptive offer — also known as a bully offer — is submitted before the seller’s formal offer presentation date in an attempt to lock up the deal before competition begins. Under Ontario real estate regulations, when the listing brokerage receives a pre-emptive offer, it must immediately notify all buyers who have previously scheduled or completed showings, giving them a window (typically 24 hours) to also submit if they choose.
For Buyers: The Upside
• Potentially lock up the home before offer night chaos
• Avoid competing against an unknown number of offers
• Flexible closing date can sweeten the deal without extra cost
For Buyers: The Risk
• Must typically be firm (no conditions) — high financial exposure
• Price needs to be 5–10% above asking to get seller attention
• Seller may still reject it and proceed to offer night with more bids
Arthur’s Take: Pre-emptive offers are a legitimate tool but a high-stakes one. Use them only when you’re 100% certain this is your property, your comparables research confirms the price is rational, and you have a mortgage approval strong enough to go firm. In 2026’s buyer’s market, most of the time the smarter move is to wait for offer night and compete with conditions attached.
In a Buyer’s Market, Bidding Wars Work Differently
In the 2021 seller’s market, bidding wars routinely pushed prices 15–20% over asking and nearly every competitive offer was unconditional. In 2026’s buyer’s market, the dynamics have shifted meaningfully.
According to TRREB (2026), multiple-offer premiums on detached homes in the 905 area codes have compressed to 3–7% over asking — and many winning offers still carry financing and inspection conditions. Sellers who set offer presentation dates in a buyer’s market are already indicating some flexibility. They need a buyer more than the buyer needs that specific house.
Key mindset shift: In a buyer’s market bidding war, you hold more leverage than you think. Don’t panic. Don’t abandon your conditions unless you’ve verified every risk. Don’t let the word “multiple offers” override your logic.
These are the five moves that separate disciplined buyers from emotional ones — applicable whether you are competing on offer night or considering a pre-emptive approach.
Before you write a single number on an offer, pull comparable sales from the past 90 days in the same neighbourhood, property type, and approximate size. Your offer price should be anchored to what the market has actually paid — not to the seller’s list price, not to what you imagine others might bid.
Ask your agent to run a Comparable Market Analysis (CMA) specific to this property. Adjust for upgrades, lot size, and condition relative to the comps. This is your foundation — everything else builds on this number.
Before you arrive at offer night — or before your agent submits on your behalf — determine your absolute maximum price. Write it down. Tell your agent. Then commit: if the deal requires a dollar above that number, you walk. Setting this number in advance removes emotion from the equation at the exact moment emotions run highest.
Important: Never revise your walk-away number upward during the offer process. That number was set by logic. Any in-the-moment revision is driven by emotion — and that is exactly what you are trying to protect against.
An escalation clause instructs the seller to automatically increase your offer by a set increment above the highest competing offer, up to your ceiling. For example: “Buyer will pay $5,000 above the next highest bona fide offer, up to a maximum of $1,150,000.” This can help you win without overpaying — but only if the seller’s agent agrees to provide written proof of the competing offer that triggered the escalation.
Escalation clauses are most effective in smaller competitive situations (2–3 offers). In larger bidding wars with many unknowns, a clean best-and-final price is often simpler and equally competitive.
The deposit in an Ontario offer is not a negotiating lever for price — it’s a credibility signal. A larger deposit (5% of the purchase price rather than the minimum 1–2%) tells the seller you are financially capable, serious, and unlikely to walk away from the deal. In a competitive situation where offers are otherwise close, a stronger deposit can tip the decision in your favour.
The deposit must be in certified funds (bank draft or certified cheque) and is typically due within 24 hours of acceptance. Confirm with your bank in advance that you can move these funds quickly.
Every condition you add, every unusual clause, every non-standard request makes it slightly easier for the seller to choose a competitor. In a competitive situation, keep your offer tight: reasonable conditions with standard timeframes, a clean closing date aligned with seller preference, no personal property inclusions or exclusions unless necessary. Fewer moving parts means fewer reasons to say no.
In 2026’s buyer’s market, you can still include financing and home inspection conditions and be competitive. You do not need to go unconditional to win. A clean, well-priced offer with standard conditions typically beats a higher-priced offer with excessive or unusual clauses.
Common Mistakes Buyers Make in Bidding Wars
Bidding based on asking price, not comparable sales. Asking price is a marketing number. What matters is what similar homes in the same area have actually sold for in the past 90 days.
Changing the walk-away price on the fly. “Just $10,000 more” thinking is how buyers end up $50,000 above their original limit. Set the number. Keep it.
Going unconditional without doing a pre-inspection. Waiving conditions without any inspection is not strategy — it is gambling. If you are considering a firm offer, do a pre-offer inspection first.
Assuming the other buyers’ offers are high. You don’t know what others are bidding. “Phantom offer” pressure is real — sellers’ agents cannot fabricate offers under RECO rules, but you have no visibility into what was actually submitted.
Treating every loss as failure. Not winning a bidding war at the right price is a success, not a loss. The next property is coming. Walking away from an overpriced deal is the correct decision.
What is a multiple offer situation in Ontario?
It occurs when two or more buyers submit offers on the same property. Under REBBA and RECO’s Code of Ethics, the seller’s agent cannot reveal the content of competing offers — buyers bid blind. The seller may accept, reject, or counter any offer received.
What is a pre-emptive (bully) offer?
A pre-emptive offer is submitted before the seller’s scheduled offer presentation date. Ontario rules require the listing brokerage to immediately notify all registered buyers and allow 24 hours for competing submissions. Pre-emptive offers typically need to be firm (no conditions), priced 5–10% above asking, with a short irrevocability window.
Should I go unconditional in a bidding war?
In most cases, no — especially in 2026’s buyer’s market. Many sellers in the 905 and 416 are accepting offers with standard conditions even in competitive situations. Only consider going firm if you’ve completed a pre-offer inspection, your mortgage approval is rock-solid, and the comparables fully support your price.
Can a seller lie about multiple offers in Ontario?
No — fabricating competing offers violates REBBA and RECO’s Code of Ethics and can result in license suspension. However, sellers are not required to prove how many offers exist. Your agent can request written confirmation of the offer count from the listing brokerage. Ultimately, your protection is a pre-set walk-away price anchored in market data, not in what you’re told.
How does a bidding war work differently in a buyer’s market?
In a seller’s market, winning bids ran 15–20% above asking with no conditions. According to TRREB (2026), the current buyer’s market has compressed that premium to 3–7% — and conditional offers are now regularly winning. Desirable detached homes in the 905 still attract 2–4 offers, but the spread is far smaller. The seller needs you more than you might think.
Facing a Competing Offer Situation? Let’s Think It Through.
I’ll pull the comparables, model your walk-away number, and walk you through every option — so you compete with clarity, not panic.
Book a Free Strategy Session →
Arthur Zhao · 416-277-3836 · arthurzhao.realtor
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