By: Dan Balm

What is a multiple offer?

Tags: BUYING, DAN BALM, MULTIPLE OFFERS, REAL ESTATE, TORONTO

So you are at work and you walk into a conversation your coworkers are having about a Toronto “bidding war” (otherwise known as a “multiple offer”: one property, more than one buyer).

So many questions – is it an auction?  Are there rules?  Can you just ask the seller what they want and give it to them?  Is it worth it?  Should we buy in Waterloo?

Waterloo is a fine town, but if you live in Toronto you will probably want to buy a property in Toronto.

Here is what you need to know.  Typically, there are three instances when a buyer will face a multiple offer:

1) a property is listed and more than one person offers on the home at the same time.  The listing agent is required to tell competing realtors about the existence of other offers as well as any material facts that might give one offer unfair advantage over others (ie commission)
2) a property is listed and the listing agent requires a 24-48 hour “irrevocable” (the time in which the buyer must make his or her offer to be valid).  The listing agent then calls all the other realtors who showed the home, all the other realtors who want to show the property, all the realtors dogs, all of the dogs’ veterinarians etc to manufacture a multiple offer.  Again, once a competing offer comes in, the first realtor who made the offer must be informed.
3) the property is to be shown for a week and all offers are to be presented at a specific time and date; the one with the best price and conditions most attractive to the seller will be chosen.

How much you pay and what to do should be based on your desire to buy the property, a well thought out strategy and most important: careful attention to the process.

Are you walking into a multiple offer situation?  Give us a shout and bounce ideas off of us.  We are here to help.