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How do multiple offers work?

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How do multiple offers work?

“Multiple offers”—how do they actually work and how do you win? Read this short, direct guide.

What is a multiple-offer situation?

A multiple-offer situation happens when a seller receives two or more competing purchase offers at the same time. It turns a normal sale into a controlled auction. Buyers compete on price, conditions, deposit, closing date and speed. Sellers gain negotiating power. Smart sellers use that power to get better terms, not just a higher number.

How sellers handle multiple offers

  • Set an offer deadline: A firm submission window forces buyers to bring their best terms.
  • Request “Highest and Best”: Ask each buyer to submit their top price and non-negotiable terms.
  • Compare total package: Don’t pick only by price. Check deposit, financing, conditions, closing certainty and timelines.
  • Use escalation clauses carefully: They increase price automatically but can complicate the process.
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Real-world example

You list a Toronto 2-bedroom for $750,000. You get three offers:
1) $775,000, conditional on inspection, $10,000 deposit, 60-day close.
2) $780,000, firm (no conditions), $20,000 deposit, 30-day close.
3) $790,000 with escalation clause to beat competing offers by $2,500, conditional on financing.

Which wins? Offer 2 is strongest. It has certainty: no conditions, large deposit, quicker close. Offer 3 has a higher headline price but could fail on financing or trigger a messy verification. Sellers who chase just the highest number risk a delayed or failed sale.

Actionable seller checklist

  1. Set an offer deadline and advertise it clearly.
  2. Require proof of funds/pre-approval with every offer.
  3. Score offers: Price (40%), Deposit/terms (25%), Conditions (20%), Closing date (10%), Buyer reliability (5%).
  4. Consider non-price sweeteners: flexible closing, rent-back, or covering minor repairs.
  5. Have a clear negotiation plan: accept, counter, request highest-and-best, or reject.

Common tactics buyers use (and how to respond)

  • Low opening bid: Expect it. Deadlines force buyers to improve.
  • Escalation clause: Ask for documentation and a clear maximum cap.
  • Cash vs financed offers: Cash removes financing risk. Require bank proof for cash.

Why an experienced listing agent matters

An experienced agent crafts the sale format that brings certainty and competition. They filter weak offers, verify buyer credentials, and push favorable timelines. That’s the difference between a sale that closes and one that collapses.

buying or selling a home in the GTA - Call Tony Sousa Real Estate Agent

Bottom line

Multiple offers are leverage. Use a deadline, demand proof, evaluate the whole deal, and choose certainty over a risky high bid. Done right, a multiple-offer scenario delivers a faster sale, better price and fewer surprises.

Need help navigating a multiple-offer sale? Tony Sousa is a local real estate expert with proven results. Email: tony@sousasells.ca • Phone: 416-477-2620 • https://www.sousasells.ca

Keywords: multiple offers, selling a home, highest and best, bidding war, competing offers, offer deadline, real estate multiple offers, Toronto real estate.

If you’re looking to sell your home, it’s crucial to get the price right. This can be a tricky task, but fortunately, you don’t have to do it alone. By seeking out expert advice from a seasoned real estate agent like Tony Sousa from the SousaSells.ca Team, you can get the guidance you need to determine the perfect price for your property. With Tony’s extensive experience in the industry, he knows exactly what factors to consider when pricing a home, and he’ll work closely with you to ensure that you get the best possible outcome. So why leave your home’s value up to chance? Contact Tony today to get started on the path to a successful home sale.

Tony Sousa

Tony@SousaSells.ca
416-477-2620

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