Q My REALTOR® says there are five offers on a property I want to buy. How do multiple offers work?

A When a seller receives multiple offers, he or she has their choice of offers. This is obviously an advantage for the seller, but it doesn’t necessarily mean you are at a disadvantage, provided you know how to enter into a multiple offer situation. In general, the seller is looking at two main items when considering an offer: the purchase price and the conditions written into the offer. A seller wants the best price and the best conditions possible. These two items leave some room for negotiation by your REALTOR® on your behalf. Conditions are a very important part of any offer: financing conditions, closing/possession dates, items to be included in the sale, and so on. In a situation where there are multiple offers, it may be best to keep conditions in your offer to a minimum and include only those you consider absolutely necessary. The REALTOR® you work with will advise you on which conditions should be included in the offer and which might be removed. In Ontario, the Brokerage representing the seller must disclose the number of competing written offers to each person making a written offer; however, they cannot disclose the particulars of the other offers. When you make your offer, you will not know what other buyers are offering, so be sure to carefully consider the price you are willing – and able – to offer. In general, multiple offers are a one-shot deal – you must go in with your best offer and hope the price and conditions are the most favourable for the seller. There is always a danger that buyers can get caught up in the emotion of finding the home they want and then having to compete for it with other buyers. If you are in that situation, you must be especially careful to make sure your offer is in line with what you can afford; remember, you have to live with the terms of the offer once it’s accepted. A REALTOR® is your best ally in any real estate transaction, but is particularly important in a multiple offer situation - he or she can advise you, draft the offer for you and negotiate on your behalf. Your REALTOR® will be the cool head you need when emotions can run high.