Comparing competing offers is the moment all of your listing preparation leads to. Done well, you walk away with the best possible combination of price, certainty, and timing. Done poorly, you choose the highest number and discover too late that it's conditional, fragile, or tied to a closing date that creates major problems for you. Here's how to evaluate multiple offers systematically in Ontario and identify the genuinely best one — not just the one with the highest headline number.
The Five Dimensions of an Offer
1. Net Price
Start with price but don't stop there. Calculate net proceeds from each offer: price minus your costs (commission, legal fees, mortgage discharge, adjustments). If one offer includes chattels the other excludes — an appliance package, a piece of furniture you had excluded — factor in the replacement or loss value. The headline number is the start of the comparison, not the end.
2. Conditions
Conditions are the most significant variable after price. The key question: how certain is this deal to close?
- Firm offer (no conditions): Maximum certainty. Once you accept, the deal is legally binding. The buyer cannot exit without defaulting.
- Financing condition: Adds uncertainty — if the buyer can't secure mortgage approval within the condition period (typically 5 business days), the deal collapses. In 2025, with mortgage stress test requirements and tighter lending, financing conditions carry more uncertainty than they did in 2020–2021.
- Home inspection condition: The buyer may request repairs, a price reduction, or exit the deal based on inspection findings. A condition inspection period of 3–5 business days is standard.
- Sale of buyer's property: The buyer must sell their existing home before closing. Rare in competitive GTA markets but encountered in balanced or buyer's markets. This condition makes the deal highly uncertain — you're waiting for a third-party transaction you can't control.
A firm offer at $960,000 is often worth more than a conditional offer at $990,000. A deal that falls through during the condition period costs you time, relisting costs, market momentum, and carrying costs — while the $30,000 premium evaporates.
3. Closing Date
The closing date must work for your situation. If you're purchasing a new home closing in 60 days, a 30-day closing on your sale creates a gap you need to bridge (bridge financing or temporary housing). A 90-day closing after you've already moved creates 30 days of double carrying costs. Match the closing date to your actual timeline — a $20,000 higher offer on a closing date that doesn't work may cost you more than that in carrying costs and bridge financing fees.
4. Deposit Amount
A larger deposit signals buyer seriousness and financial strength. Standard deposits in the GTA run 3–5% of purchase price. A buyer offering 2% has less financial commitment than one offering 5–7%. If the deal fails after going firm and the buyer defaults, you may retain the deposit as damages — a larger deposit provides more cushion. It's not the primary evaluation criterion, but it's meaningful as a signal of buyer strength and commitment.
5. Other Terms
Chattels included or excluded, requests for rent-backs (buyer owns but lets you occupy past closing), unusual Schedule B clauses, or conditions beyond the standard financing and inspection (e.g., lawyer review conditions, title conditions) all affect the deal's attractiveness. Read every Schedule attached to every offer, not just the APS front page.
Creating a Comparison Framework
When comparing multiple offers, create a simple side-by-side comparison your listing agent should provide:
| Factor | Offer A | Offer B | Offer C |
|---|---|---|---|
| Price | $980,000 | $1,010,000 | $970,000 |
| Conditions | Firm | Finance + inspection | Firm |
| Closing date | 60 days | 45 days | 90 days |
| Deposit | $49,000 | $30,000 | $48,500 |
| Deal certainty | High | Medium | High |
In this example, Offer B's higher price may be less attractive than Offer A's certainty — depending on your risk tolerance and timeline. Offer C's 90-day closing may or may not suit your needs. The right choice depends on your specific situation.
When to Sign Back vs. Accept
If the best offer is close to but not quite at your acceptable price, consider a sign-back (counter-offer) rather than an immediate accept. Sign back one offer at your target price or terms — your listing agent advises on which offer is most likely to be improved. If the buyer accepts your counter, you have a deal at better terms. If they reject, you return to the other offers (if still within their irrevocability period). Your listing agent manages this timing and communication.
See our guide on how multiple offers work for sellers for the full process.
FAQ
Is a firm offer always better than a conditional one?
All else being equal, yes. But "all else equal" rarely applies. A conditional offer $50,000 higher from a buyer with obvious financial strength (large deposit, pre-approval confirmed by their agent) may be worth more than a firm offer $50,000 lower. Evaluate certainty and price together, not in isolation.
What happens if I accept a conditional offer and it falls through?
You re-list or negotiate with other parties. The deposit is returned to the buyer if the deal terminates on an unsatisfied condition. You've lost the listing momentum from the offer period and must restart. This is the risk of accepting conditional offers — weigh it against the price premium they may offer.
Can I ask all buyers to improve their offers before I decide?
You can notify all registered buyers' agents that you're inviting improved offers. This effectively runs a second round and gives buyers who submitted conservatively the chance to improve. Your listing agent manages this communication. Not all buyers will improve — some will take the position that their first offer was their best.
Should my agent advise me which offer to accept?
Yes, your listing agent should provide a recommendation based on their professional assessment of the offers' relative strengths. They should present the comparison and their reasoning — but the final decision is yours. An agent who simply lines up the offers by price without analysis of conditions, closing alignment, and deal certainty is not providing full advice.
What if I prefer the buyer (e.g., a young family over an investor)?
In Ontario, you can generally accept whichever offer you choose — including based on personal preference for who is buying. However, you cannot discriminate on protected grounds under the Ontario Human Rights Code (race, religion, ethnicity, family status, disability, etc.). Preferring one buyer type over another for legitimate reasons (closing date, deal certainty, personal connection) is within your rights. Discriminating on prohibited grounds is not.