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Buying Tips

How to Win a Bidding War Without Overpaying

Bidding wars are back in certain segments. Here's the strategy I use to help my buyers win without leaving $50,000 on the table.

Aman ToorMarch 10, 20266 min read
How to Win a Bidding War Without Overpaying

Bidding wars are back in the $900K–$1.3M detached segment in Toronto and the inner 905. If you've been house hunting, you've probably already lost a few. This post is the strategy I walk every buyer through when we enter a multi-offer situation — and it's the reason my clients win roughly 75% of the ones we bid on.

The goal isn't just to win. It's to win without overpaying. Those are two different things.

Do your homework before offer night

Get the inspection done early if the listing agent allows pre-inspections. Have your lawyer review the status certificate if it's a condo. Know the zoning. Walk the neighbourhood at night. By the time you're writing the offer, you should know this property better than most of the other bidders do.

Write a clean, clear offer

Drop every unnecessary condition. Keep only what's truly essential. Include a deposit that's 5% of your offer (not the asking price). Give a short irrevocable. Write a short, warm letter to the seller if that's appropriate. The cleaner the offer, the lower the 'friction tax' the seller prices into their decision.

Know your walk-away number — and honour it

Decide your absolute ceiling before you ever see the competing offers. Write it down. Tell your partner. Tell me. When the counter comes back asking for $30K more, you need to already know whether that's a yes or a no. The buyers who lose the most money in bidding wars are the ones who haven't done this exercise.

Bidding War
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Aman Toor
RE/MAX Realty Specialists Inc.

Senior sales rep and full-time GTA realtor. Fifteen years, 500+ transactions, zero handoffs.