Top 5 Mistakes Buyers Make in Multiple Offers (2027)

Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty

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Semi-detached brick houses on an east-end Toronto street in late autumn (illustrative)

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 9 min read — The five mistakes GTA buyers make in multiple offers, the latest sale-to-list numbers, and how to compete without overpaying.

Short answer

The five biggest multiple-offer mistakes are bidding off the list price instead of recent sales, treating a pre-approval as a guarantee, waiving the inspection without doing one first, misreading Ontario’s offer disclosure rules, and going past your walk-away price. In October 2026 the average GTA home sold for 97% of asking, so most buyers can avoid overpaying.

This is for buyers in Toronto and the GTA who are about to compete with other offers, or who just lost one and want to know why. You will get the five mistakes I see most often in multiple offers, the latest TRREB numbers on where competition is still real, and what to do instead so you can win without overpaying or taking on risk you did not need.

How competitive are multiple offers in the GTA right now?

Less than most buyers think, except in a few pockets. TRREB’s October 2026 Market Watch shows the average home across its area sold for 97% of the list price, meaning most buyers paid under asking. But semi-detached houses sold for 101% on average, and in Toronto’s east end some home types sold well over asking.

Home type, October 2026	All TRREB areas: sale-to-list	City of Toronto: sale-to-list	Toronto East: sale-to-list	All TRREB: avg days on market
All home types	97%	98%	101%	31
Detached	97%	97%	100%	29
Semi-detached	101%	102%	105%	22
Freehold townhouse (att/row)	99%	100%	104%	28
Condo apartment	97%	97%	97%	38

Source: TRREB Market Watch, October 2026. Average sale price to list price ratio and average listing days on market. Toronto East is TRREB’s grouping of districts E01 to E11.

So the honest picture for 2027 is mixed. Most condo buyers and many detached buyers can negotiate. Buyers chasing well-priced semis and townhouses in popular Toronto areas should still expect a fight. For the longer trend, see my look at whether bidding wars are back in the GTA.

Mistake 1: Bidding off the list price instead of recent sales

When a home is set up for an offer date, the list price is often a marketing tool. It may be set below what the seller expects in order to draw a crowd. Buyers who anchor on it think “$50,000 over asking” is generous, when it may still be below what similar homes have sold for.

The fix is to ignore the list price and price the home yourself. Ask your agent for sold prices of similar homes nearby in the last 90 days, adjusted for size, lot, condition and parking. That gives you a value range. Your offer decision then becomes “how far into or above that range am I willing to go,” not “how much over asking.”

The opposite mistake matters too. In a market where the average home sells under asking, some listings are priced too high. If a house has sat for 30 days with no offers, the list price is not your floor either. My guide on how much over asking to offer in Toronto goes deeper on reading the comparables.

Mistake 2: Treating a mortgage pre-approval as a guarantee

RECO, Ontario’s real estate regulator, says plainly that a pre-approval or pre-qualification does not remove the need for a financing condition. A pre-approval is a lender’s early view based on what you told them. The final approval comes after the lender reviews the specific property, often with an appraisal.

That matters most in multiple offers, for two reasons:

The appraisal gap. Lenders generally lend on the lower of the purchase price and the appraised value. If you pay $950,000 and the appraisal comes in at $900,000, the mortgage is based on $900,000 and you must cover the $50,000 difference in cash, on top of your down payment.
Rates are moving. The Bank of Canada raised its policy rate to 2.50% on 28 October 2026 and said a further increase could be needed. The big banks moved prime to 4.70% the next day. Under OSFI’s rule for uninsured mortgages, you must qualify at the greater of your contract rate plus 2 points or 5.25%, so a higher rate shrinks how much you can borrow.

If you plan to go in without a financing condition, ask your lender or broker to review the property before the offer date, and keep cash aside for a possible appraisal gap.

Mistake 3: Waiving the inspection without doing one first

RECO warns that dropping the inspection condition to make your offer look stronger carries significant risk, including unexpected defects and costly repairs. Yet in a bidding war, firm offers often win. The answer is not to skip the inspection. It is to move it earlier.

Pre-offer inspection: book your own inspector before the offer date. You pay even if you lose, but you bid knowing what you are buying.
Seller’s inspection report: if the seller provides one, read all of it, check who prepared it and when, and confirm whether you can rely on it.
Older homes: look for basement water, old wiring and a lead water service line. These are the findings that change a price by tens of thousands of dollars.

Free tool — what can you actually afford?

Mistake 4: Misreading the rules on competing offers

Ontario’s rules changed when phase two of the Trust in Real Estate Services Act (TRESA) took effect on 1 December 2023, and many buyers still work from old assumptions. Here is what RECO says applies now:

The number of offers: the seller’s agent must tell every buyer who has submitted a written offer how many competing offers there are.
The content of offers: the seller decides whether any details of the offers are shared. Agents cannot share offer content without the seller’s clear written direction, and personal or identifying information cannot be shared.
The seller can change course: a seller can decide to start sharing offer content at any time, so you may not get advance warning.
Your choice: you can decline to take part in a process where offer content is shared, or take steps to protect your offer’s details.

The mistake is assuming your price stays private, or that a seller’s agent can quietly tell you what you need to beat. Before you sign, ask the listing agent how offers will be handled and whether content will be disclosed. My guide to open offers and offer disclosure in Ontario explains how sellers use these choices. If you are thinking of using an escalation clause, read how escalation clauses work in Ontario first, because they can reveal your top price.

Mistake 5: Blowing past your walk-away price

Offer nights are designed to create pressure. A signback asking for your “best and final” can push you $40,000 higher in 20 minutes. The buyers who regret it later almost always skipped one step: writing down a walk-away number before the evening started.

Two numbers belong in that decision:

Value: the top of the range that recent comparable sales support.
Affordability: the price your approved mortgage plus your cash can actually close, including closing costs and any appraisal gap.

Watch the $1.5 million line closely. In Canada, the minimum down payment is 5% of the first $500,000 and 10% of the portion from $500,000 to $1.5 million, but 20% of the whole price at $1.5 million and above, and mortgage insurance is not available there. On a $1,450,000 home the minimum is $120,000. At $1,525,000 it jumps to $305,000. A bidding war that pushes you over that line can turn a home you could buy into one you cannot.

My take

The buyers I see win multiple offers without regret do the work before the offer date: a pre-offer inspection, a lender who has looked at the property, a deposit ready to go, and a walk-away number written down. On the night itself, they are calm because the hard thinking is already done. If you lose at your number, you did not lose a home. You avoided overpaying for one.

What makes an offer stronger besides price?

Price is not the only thing a seller weighs. These can tip a close call your way:

Fewer conditions, but only the ones you have already de-risked.
A deposit that is ready, as a bank draft or certified funds, and a size that shows you are serious.
A closing date that suits the seller. Ask the listing agent what they would prefer.
A clean, complete offer with the right schedules and no unusual requests for chattels.

I cover each of these in my guide on how to win a bidding war in Toronto without overpaying.

Watch out

A firm offer in Ontario is a binding contract. If you cannot close because the appraisal came in low or your financing fell through, you can lose your deposit and the seller may sue you for their losses if they resell for less. Never go in firm unless your lender has reviewed the property and you have the cash to cover a shortfall.

When should you walk away from a bidding war?

When the price passes the top of the comparable range and your own walk-away number.
When winning would mean waiving a condition on a risk you have not checked.
When the price would push you over $1.5 million and you do not have 20% down.
When you cannot get a straight answer on how offers will be handled.

With the average GTA home selling under asking in October 2026, there is usually another option coming. That is not true of every street, but it is true of most of the market.

What to do next

Get a full mortgage pre-approval and ask your lender how they handle appraisals on firm offers.
Have your agent pull 90 days of sold comparables and agree on a value range before the offer date.
Book a pre-offer inspection on any freehold home you plan to bid on firm.
Write down your walk-away price and keep it with you on offer night.
Ask the listing agent in writing how offers will be handled and whether content will be shared.

Need help with this? Talk to me.

I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].

Book a free call Call 833-330-1925

Frequently asked questions

How do I win a multiple offer situation in Toronto?

Do the work before the offer date. Get a full pre-approval, a pre-offer inspection, and a value range from recent sold comparables, then offer a clean deal with a ready deposit and a closing date the seller wants. In October 2026 most GTA homes sold under asking, so pick your battles: semis and freehold townhouses in Toronto’s east end were the most competitive.

What are the biggest mistakes buyers make in a bidding war?

The five I see most in the GTA are bidding off the list price instead of recent sales, treating a pre-approval as a guarantee, waiving the inspection without doing one first, misreading Ontario’s offer disclosure rules, and going past a walk-away price on offer night. Each one either leads to overpaying or to taking on risk the buyer never checked.

Are homes selling over asking in the GTA?

Mostly no. TRREB’s October 2026 Market Watch shows the average home across its area sold for 97% of list price. The exceptions were semi-detached houses at 101% region-wide and 105% in Toronto East, and freehold townhouses at 104% in Toronto East. Condo apartments sold for 97%, so most condo buyers in 2027 should expect room to negotiate.

Can a seller tell me what other buyers offered in Ontario?

Only if the seller gives clear written direction. Under Ontario’s rules since 1 December 2023, the seller decides whether offer content is shared, agents cannot share it otherwise, and personal or identifying information is never shared, according to RECO. The seller’s agent must tell every buyer with a written offer how many competing offers there are.

Should I waive the financing condition in a bidding war?

Only if your lender has reviewed the property and you can cover an appraisal gap. RECO says a pre-approval does not remove the need for a financing condition. Lenders generally lend on the lower of price and appraised value, so if you pay $50,000 more than the appraisal, that $50,000 comes from your savings, not the mortgage.

What happens if the appraisal is lower than my offer?

Your lender will generally base the mortgage on the lower appraised value, and you must make up the difference in cash. On a $950,000 purchase appraised at $900,000, that is $50,000 extra. If your GTA offer was firm, you still have to close or risk losing your deposit, so check appraisal risk with your lender before an offer date.

How much over asking should I offer in a bidding war?

There is no set percentage. Base your offer on recent sold prices of similar homes, not the list price, because many GTA homes on offer dates are listed below expected value. In October 2026 the average TRREB-area home sold for 97% of asking, while Toronto East semis averaged 105%, so the right number depends on the home type and area.

What is the minimum down payment if a bidding war pushes the price over $1.5 million?

It jumps to 20% of the whole price. In Canada, the minimum is 5% of the first $500,000 and 10% of the portion up to $1.5 million, but at $1.5 million and above you need 20% and mortgage insurance is not available. On a $1,450,000 home that is $120,000; at $1,525,000 it is $305,000.

Can I back out of a firm offer in Ontario?

Generally no. Once all conditions are removed or waived, an Ontario offer is a binding contract. A buyer who fails to close can lose the deposit and may be sued by the seller for the difference if the home resells for less. Speak with a real estate lawyer immediately if you think you cannot close.