Kelly's Articles and Market Updates

In strong Seller markets (and even in balanced markets for reasonably-priced or under-priced listings), inevitably to purchase your next dream home or investment, many of you will wind up participating in a “dreaded multiple offer competition”.

Being licensed as an Alberta REALTOR® since 2004, my professional experience includes assisting Seller and Buyer clients in many dozens of multiple offer scenarios spanning all types of residential, commercial, and rural real estate -- in all price categories across Greater Edmonton. Below are some important questions that I will be answering for you in this article:

-      How should Buyers prepare to be ready for the possibility of competing in multiple offers?

-      What can Buyers do, other than price, to beat out competing offers and WIN? 

-      Can first-time Buyers take on experienced investor Buyers in multiple offers and WIN?

-      What negative actions should you avoid which will negatively affect your multiple offer success?

-      What positive strategies should you employ to WIN your next multiple offer situation?

Buyers: below are my TOP TEN HOT BUYER TIPS to help you WIN your next multiple offer:

TIP #1: Be prepared on your current-owned property BEFORE viewing homes or writing offers!

(a). If you own a home for which the monetary proceeds will be needed to buy, immediately contact one or two reputable and experienced REALTORS® to provide you a home evaluation, and if moving for certain, get your home listed right away at proper market value with a 30, 60, or even 90-day possession. If you expect it will be easy to move with many buying options available, a 30-day possession is best since most Buyers seek a quick possession home. However, if you are elderly or else very selective on your next home to buy, a longer 60 or 90-day possession is suggested to give extra time to find the right home once your home is sold. [If Listing or Selling in Greater Edmonton, contact me at www.KellyGrant.ca !]

(b). Understand that in order for you to maximize your successes in multiple offer presentations, offering subject to sale is a non-starter that will certainly be rejected immediately by most Sellers either with or without multiple offers. Thus, you must have your home sold first to fairly compete with other Buyers who offer a 1 to 1.5-week conditional period and / or will buy unconditional.

(c). Regardless whether you own or do not own a current property and will depend on some level of bank financing toward the purchase, it is imperative to contact a reputable and experienced Mortgage Broker to get prequalified for financing, and to obtain a letter confirming this point (more on this later).

[Review my related article: “Selecting the Best Mortgage Broker”:

https://www.kellygrant.ca/Blog.php/archived/20091001/selecting-the-best-mortgage-broker-by-kelly-grant-realtor-at-maxwell-realty

TIP #2: Obtain the best REALTOR® available to facilitate your Buyer Agent services!

(a). First step: make the decision to engage a Buyers’ REALTOR® for buying property  [See my related article: “Importance to Always Hire a REALTOR® for Buying”: https://www.kellygrant.ca/Blog.php/my-top-ten-reasons-not-to-buy-without-a-realtor-by-kelly-grant-realtor-at-maxwell-realty

(b). Multiple offer presentations are similar to professional games and sports, in that success will often come down to ‘a game of inches’ – by hiring the best available Buyer’s Agent with maximum credentials, knowledge, experience, etc., you are maximizing your chance of success in the toughest of competitive situations.

[See related article: “How to Select Your Best Full-Service Buyer REALTOR®”:

https://www.kellygrant.ca/Blog.php/archived/20110301/how-to-select-your-best-buyer-realtor-by-kelly-grant-at-maxwell-realty and to review my client testimonials (2004 to present): https://www.kellygrant.ca/Testimonials.ubr

TIP #4: Understand the business dynamics of multiple offers and how they work!

(a). When buying any property where a Buyer has the only offer, the business dynamics are such that it is essentially you vs. the Seller, and when making an offer as the Buyer, your goal should be to obtain the property via the lowest price while optimizing other factors from the Seller in exchange for closing.

(b). When buying a property in which there are multiple concurrent offers, the business dynamics have suddenly changed. Now you are not vitally important to the Seller since they have at least one other Buyer whom they can sell to.

(c). As a result, your goal should no longer be worrying about the lowest price, etc. the Seller will accept as would be the case with a single offer. Instead, you should now be exercising grave concern about what Buyer(s) “B”, “C”, “D”, etc. may choose to offer for the property since the Seller(s)’ options are expanded.

(d). To determine what competing Buyer(s) “B”, “C”, “D”, etc. will offer for price, this really depends on three important factors, two of which can be predicted:

(i). How deep are the pockets (i.e. financial capacity) of the competing Buyer(s) – note: for 99.5% of the situations this cannot be determined. Hence it is a reality that not all multiple offer situations are winnable – Buyers must have this frame of mind from the beginning for optimum success and this means generating a maximum price in mind that you are willing to pay, for every given property targeted, and if the property is sold above your very best price, mentally and emotionally it is important to let it go immediately and move on to the next without any shame or regrets.

(ii). What is the target property worth on the open market? For this, ask your Buyer(s)’ Agent to provide you a Comparative Market Analysis of other similar homes (if available) in the neighbourhood as a close estimate. Do not rely on municipal assessments and a certified appraisal report (if available and done in past 6 months) would be a close second choice.

(iii). What is the quantity of offers? It is logical in real estate, as with any type of investment competition: as the number of offers received by the Seller increases, the final sale price (correspondingly) increases. Hence it is critical that your Buyer(s)’ Agent supply you with the quantity of offers. Note for properties listed by a licensed REALTOR® (in Alberta and most other jurisdictions), there are strict rules in place to ensure all multiple offers are legitimate, including disclosure of companies and individual REALTORS® who have brought in competing offers. So avoid making the mistake many Buyers do of thinking that multiple offers can somehow be fabricated – in my personal expert REALTOR® opinion: they are not, guaranteed in 99.5%+ of circumstances, and this statement very closely approaches 100%! What does this mean? Listen to your REALTOR® and govern yourself accordingly -- risks incurred with multiple offers are very real for Buyers!! Below is my table of typical sale price ranges that will vary somewhat for home quality, neighbourhood, price range, and market:

(e). Remember: with buying real estate, often 'over-paying' within a resonable range ($10,000 to $20,000+) can be a very sound investment decision when factoring rising real estate values (i.e. inflation) for holding a property 3 to 10+ years. 
 

TIP #5: Be prepared to MAXIMIZE your purchase price immediately out of the gate!

(a). The old adage (paraphrased): sometimes you only get one chance to make a good first impression. This is true in spades for real estate multiple offers. Especially when it comes to price, Buyers are advised to make their very best offer for price up front, understanding a lower offer may not be countered or even seriously considered at all if the other offer is higher or overall better.

(b). With rare exceptions (i.e. Seller disclosing against their best interests) you will never know for sure what price the other competing offers have offered, so do not worry that your offer might be a few thousand dollars higher with a gap between the offers. Coming marginally too low and missing out on your dream home by $1000 or $2000 when you could easily have offered higher is the biggest and most common rookie mistakes that are often made by hesitant Buyers with ‘deeper pockets’.

(c). If financially you make your very best offer and Seller(s) decide to counter your offer higher in price, while you cannot come up in price, simply receiving a counter means you are now in the game, and could try negotiating other factors (i.e. deposit, possession, goods, conditions, etc.), in lieu of price, that could potentially yield success.

(d). Remember: if you make your very best offer and have the protection of Buyer condition(s) (e.g. inspection) and any issues are discovered, your options remain open including: renegotiating price; moving forward; backing out of deal; etc. 

TIP #6: Be prepared to MAXIMIZE your deposit immediately out of the gate!

(a). Remember an old adage (paraphrased): Sellers LOVE Buyers who bring a boatload of cash!! For Buyers in a multiple offer situation, now is not the time to be shy, hesitant, or afraid. You are competing with other Buyers, and you want the Seller(s) to LOVE you otherwise they will pick another Buyer instead. In addition to offering them your best purchase price, it is important to send a message to the Seller(s) that you have money and closing will not be an issue. 

[Example: if buying a property for $1M with a 30-day closing, if you turn out to be the successful Buyer, you will be paying the entire $1M in 30 days, right? So why take a rookie chance and offer the Seller(s) only $50K deposit due in three days when you can easily offer $100K, $200K, $300K+, etc. to accentuate your offer quality versus the other competing offers?] 

(b). Higher deposit gives the Seller(s) a much greater level of assurance that you will not “disappear” or else leave them hanging on completion. To WIN at multiple offers and beat out other Buyers, you must maximize assurance and credibility to the Seller(s) otherwise they might just select some other offer? [Also: for Buyers extending protection to multiple offer Sellers, define any / all 'nominees' with original Buyer legally responsible to close in the unforeseen event of nominee default].

(c). Remember: if your offer is not accepted, no deposit is submitted. Plus: if Buyer conditions are not removed for a valid reason, subject to extraneous legal terms on the offer, Buyer deposits are 100% refundable.
 

TIP #7: Be prepared to both OPTIMIZE and MINIMIZE your condition protections!

(a). If you need conditions, be sure to keep them for your own legal protection (ask your Lawyer and REALTOR® for further clarity as required) but if you can easily get by without the conditions, consider the advantages of removing them entirely.

[Examples: (i). If you have cash to buy and do not require any bank financing, an excellent option exists to make your offer without inserting a financing condition.

(ii). If you are planning to spend a tonne of money on upgrades and are not concerned what kind of inspection issues are identified, a very good option is to consider all the merits of making your offer without inserting an inspection condition.

(iii). If buying a condo and already own a unit in the complex for which you are already familiar with the documents and any management issues, an excellent option exists to make your offer without inserting a condo documents condition.]

(b). If offering unconditional understand that ‘come hell or high water’ once the completion date elapses, you are legally obligated to come up with 100% of the funds and are not allowed to back out for any reason due to not having conditions.

(c). If conditions are required, attempt to insert condition dates that elapse as quickly as possible – multiple offer Sellers really do not like waiting around too long for Buyers to remove their conditions, and so earlier condition deadlines help your offer to compete better versus other Buyers who choose to drag their conditions out longer.

(d). Remember life is not without risk: inserting Buyer conditions are likely to cost you money with multiple offers, particularly as the number of offers increases. Multiple offer Sellers strongly prefer unconditional offers, even ones priced much lower, as they know conditional offers have negative value if they accept a deal pending with a conditional Buyer who eventually backs out of the deal, causing the Seller to risk losing the unconditional Buyer if they move on to a different property. As a result: usually any offer with conditions is penalized and will need to be at least $5000 to $20,000+ higher purchase price in order to compete on the same level versus an unconditional offer.

TIP #8: Avoid buttering up the Seller(s) and instead focus on what makes you a great Buyer!

(a). A common myth among many Buyers: if they come up with a juicy canned introduction letter to the Seller(s), explaining they are a young family who just love the Sellers’ home, upgrades (YAWN!) and all that jazz, the Seller(s) will give them and their offer "special consideration". WRONG: from my experience, most Seller(s) catch on to this quick and for as little as $500 higher purchase price from the next Buyer, Seller(s) are usually very content to forget all about any "introduction letters".

(b). Buyer letters are not effective because they can be fabricated, as some developers and investment Buyers can easily pose as nice family Buyers.

(c). For Buyers that want to submit a letter, here is my suggestion: stick to the facts as to what makes you a great Buyer – submit a current prequalification letter from your mortgage broker confirming you are preapproved for over the list price (or better yet, approved for significantly higher than the list price). You will find this will enact a much more favorable impression from Sellers if they regard you as a genuine Buyer who is serious about buying the property.

TIP #9: Avoid clouding your offer with extra goods or superfluous contract terms!

(a). The goods the Seller wants to include in the deal are shown on the listing. Do not add extra things like furniture, garage contents, outdoor items, musical instruments, sports equipment, etc. at this stage since it clouds your offer and makes it more difficult for Seller(s) to compare your offer with the other offers.

(b). Once you have a deal pending (or best once the property is SOLD), you still reserve the right to request an amendment proposal to add extra goods in exchange for equal value (i.e. extra money added to the purchase price) for which the Seller(s) can accept, counteroffer, or reject. Never presume you can ever get goods included (at any price) which are not shown on the listing as Seller(s) may be leasing items or else have agreement to sell them to others.

(c). In multiple offers, do not add things to the offer that are not very simple and straightforward. For example: if the home is very dirty and messy for which you want the Seller(s) to hire cleaners before possession, you are far better off to allow for cleaning in your offer (i.e. reduced purchase price for the cost) and not have cleaning terms inserted in your offer. Simple is usually always better!

TIP #10: Give the Seller(s) the exact completion date or # of days they request!

(a). The largest mistake Buyers often make is to presume they have leverage to push Seller(s) on anything, including completion date, during multiple offers. 

(b). There is usually a very good reason why Sellers have the completion date they require – it could be family related, it could be financial, personal, etc. and completion date may not be negotiable from the Seller(s)’ perspective.

(c). Rather than attempting to put Seller(s) through some kind of ordeal selling their home and risking losing out on a multiple offer becuase the Seller(s) are unable or unwilling to accommodate your completion date request, the best approach as a  Buyer is to provide Seller(s) the completion date they require and then make all arrangements yourself that can include:

            (i). If renting, giving one month tenancy notice to a Landlord for moving;

            (ii). Placing your items in storage and / or staying a short time in a Hotel;

            (iii). Obtaining short-term interim financing from a bank; and / or 

            (iv). Other minor moving inconveniences, allowing for them in your offer.

In summation: for multiple offer scenarios, unlike single offer situations where Buyers have significant leverage, it is the Seller(s) who are boss and call the shots!  This means for Buyers to WIN a multiple offer scenario, be humble and pay close attention to every one of my important TEN TIPS listed above. Employ them diligently to your best ability, and make no mistake: you will be giving yourself the very best possible chances to WIN, understanding in scenarios which involve many offers, finishing even second or third is still a good performance and in such cases where you narrowly lose out, be sure to learn from your REALTOR® as much information as you can: exactly why you lost, and employ revisions on future offers.

[Article written and ©2025 by Kelly Grant, M.Eng., ABR, NCSO, P.Eng. - Residential / Commercial / Rural REALTOR® at MaxWell POLARIS in Edmonton, Alberta, Canada]

Disclaimer: for those readers not currently represented by another licensed REALTOR®, to obtain more information on this topic and / or if you will be selling or buying in the Greater Edmonton Area, call Kelly at 780-414-6100 (pager); text Kelly at 780-717-9290; or send Kelly an introductory email to SOLD@KellyGrant.ca to schedule your next confidential appointment!