What we’ve been seeing in the market over the past few months is highly unusual. Demand far exceeds supply, and every half-decent property attracts a line of potential buyers. On the one hand, such a seller’s market makes selling easier, but on the other, it makes buying incredibly difficult.
Multiple offers (when several buyers submit offers on the same property) are now a common scenario in this type of market. Buyers scramble to convince the seller to choose them, while the seller, like a picky bride, carefully evaluates the offers, appearing demanding and selective.
You may be surprised, but when multiple offers are on the table, the seller doesn’t always accept the highest one. Sometimes, they simply like a particular buyer or their agent. Sometimes, the closing date matters more than the price. Sometimes, the highest offer comes with a long list of conditions, and the seller prefers a slightly lower offer with fewer complications.
Believe it or not, I once witnessed a seller choosing a buyer just because they were touched by the buyer’s offer to let them take any sentimental item from the house, even something usually included in the sale, like curtains or light fixtures. The irony? The seller had no such sentimental items, but the gesture alone won them over.
Let’s go over the right strategies for dealing with multiple offers—how to act wisely if you’re selling, and how to compete effectively if you’re buying.
YOU’RE A SELLER
It may seem like you can sit back and relax. Your home looks fantastic, the location is great, and there’s no doubt that selling it will be a breeze. And yes, in a rising market, buyers will grab anything, but your goal isn’t just to sell—it’s to sell for the highest price possible!
Tips for sellers:
- Don’t neglect staging. Even something as small as the right color scheme in your kitchen can increase the number of offers and push up the final sale price.
- Plan your sales strategy. Will your listing be set up for multiple offers from the start? Where will your property be advertised? What marketing steps will attract the most buyers?
- If you’re also buying, plan carefully. Should you sell first, then buy, or vice versa? Your realtor will help structure the sale properly to prevent the nightmare scenario where you sell your home but can’t find a new one in time.
- Work with a realtor who knows how to maximize profit in a seller’s market. Even in seemingly ideal conditions, a strategic approach can bring in tens of thousands of extra dollars that you might not have expected.
YOU’RE A BUYER
Yes, the competition is intense, and buyers are aggressively outbidding each other. Everything moves quickly, and the constant mention of increasing prices can make your head spin. But don’t panic—great deals still happen, even in a booming market.
Tips for buyers:
- This isn’t a casino—don’t let emotions take over. You need a realtor who can help you stay level-headed and make strategic decisions.
- Decide on your maximum price before bidding. If you’ve lost multiple times, reassess your approach (or your budget) and adjust accordingly.
- Get pre-approved for financing, ideally from multiple lenders or brokers. Work with a realtor who understands not just the buying and selling process, but also financing, closing conditions, home inspections, and even the potential resale value of the property in the future.
- Try to inspect the home before submitting your offer. This isn’t always possible, but at the very least, bring a home inspector, contractor, or realtor with renovation expertise to your viewing. Even a quick walk-through with a trained eye can reveal potential issues that could lead to significant expenses later.
- Work with an experienced agent who can present your offer in the best possible way and, in some cases, get inside information from the seller’s agent that most buyers won’t have access to.
- Don’t be discouraged if you lose a bidding war. More homes will come onto the market, and chances are, an even better one will be available tomorrow.
Unfortunately, an article like this can’t cover every possible scenario or risk factor for both buyers and sellers.
So, if you have questions and want honest answers, or if you’re thinking about evaluating your current property or starting your search for a new one—call 416-305-6525, and I’ll be happy to help!
