A bidding war happens when a home receives multiple competing offers at the same time, and the seller chooses between them rather than simply accepting the first one submitted. In the GTA, how much information buyers get about competing offers changed materially on December 1, 2023, when the Trust in Real Estate Services Act (TRESA) came into effect — sellers can now choose to share offer details with competing bidders, something that wasn’t previously permitted under the old rules.
This guide explains how a multiple-offer situation actually works under current Ontario rules, what a seller can and can’t disclose, and how to approach one as a buyer without overpaying out of pressure.
Blind Bidding vs. Open Offers: What Changed in 2023
Before December 2023, Ontario real estate operated almost exclusively under blind bidding — buyers submitted offers without knowing what competing buyers had bid, or sometimes even how many competing offers existed. TRESA didn’t ban blind bidding, but it gave sellers a new option: they can now instruct their listing agent to disclose certain details of competing offers — commonly the highest price, closing dates, deposit amounts, or specific terms — to every buyer who submitted a valid offer, as long as the same information is shared equally with all of them.
One disclosure is now mandatory regardless of which approach a seller chooses: the seller’s agent must tell any buyer who submitted an offer how many competing offers were received. Whether the other offers’ actual terms are shared beyond that is the seller’s choice, communicated in advance through the listing agent.
How a Typical Multiple-Offer Situation Unfolds
- The listing sets an offer date — many GTA listings in a multiple-offer market specify a date and time by which all offers must be submitted, rather than accepting offers on a rolling basis.
- Buyers submit offers through their own realtors, typically including price, deposit, closing date, and any conditions.
- The seller reviews all offers with their listing agent, who discloses the number of competing offers to every buyer who submitted one.
- The seller chooses to accept one offer outright, or — depending on their chosen process — invite some or all buyers to revise their offer once, sometimes with additional information shared under the open-offer approach.
- The accepted offer becomes the agreement, subject to any conditions it contains, the same as any other Ontario real estate transaction.
Why Some Offers Skip Conditions
In competitive multiple-offer situations, buyers sometimes submit offers without a financing or inspection condition to make their offer more attractive to the seller, since an unconditional offer carries less risk of falling through than a conditional one. This is a real strategy, but it shifts meaningful risk onto the buyer: without a financing condition, the buyer is contractually obligated to complete the purchase even if their mortgage doesn’t come through as expected, and without an inspection condition, they have no formal recourse if a serious issue is discovered after the deal is firm. Buyers considering this route should have financing very firmly in hand — ideally a full pre-approval, not just a rate quote — before waiving a financing condition. See how mortgage pre-approval works and what conditions typically protect a buyer before deciding to waive either one.
Escalation Clauses: What They Are and Their Limits
An escalation clause is a term in an offer that automatically increases a buyer’s bid by a set amount if a competing offer comes in higher, up to a stated maximum. While technically permitted, many GTA real estate professionals advise against them, since an escalation clause effectively reveals your maximum willingness to pay to the seller in advance — the opposite of the negotiating position most buyers want. A firm, well-researched initial offer generally serves a buyer better than an escalation clause that telegraphs their ceiling.
Preparing Before You Start Touring Homes in a Hot Market
The preparation that actually matters in a competitive market happens before you find a property, not during the offer itself. A full mortgage pre-approval — not just an online rate estimate — tells you a real, lender-confirmed number to work with, and signals to sellers that your offer is genuinely financeable. See how mortgage pre-approval works and how long a pre-approval stays valid, since a pre-approval obtained too early in a slow search can expire before you actually need it.
It’s also worth deciding in advance which conditions you’re genuinely comfortable waiving and which you’re not, rather than making that decision under time pressure during an active multiple-offer situation. See the difference between a firm and conditional offer for the two ends of that spectrum.
How to Approach a Bidding War as a Buyer
- Get a firm number before you fall in love with the property. Know your real maximum, based on your actual mortgage pre-approval and comfort level, before you’re in the emotional pressure of a competing-offer situation.
- Understand what you’re giving up if you waive conditions. A financing or inspection condition exists to protect you specifically — waiving it to compete is a real trade-off, not a formality.
- Ask your realtor what disclosure approach the seller is using. Since TRESA made this a seller choice, it’s reasonable to ask directly whether the listing agent will share competing offer details, and act accordingly.
- Don’t assume every listing will attract multiple offers. Pricing strategy varies — some GTA listings are deliberately priced low to generate a bidding war, while others are priced at or near expected sale value from the start.
How Sellers Should Think About Choosing an Offer
The highest price isn’t always the strongest offer. A seller comparing multiple offers should weigh the deposit amount, the conditions attached (or their absence), the proposed closing date against their own timeline, and the buyer’s financing strength — a slightly lower unconditional offer from a well-qualified buyer can be a safer choice than a higher offer loaded with conditions that could still fall through. A larger deposit is also a meaningful signal of a buyer’s seriousness and financial readiness, since it represents real money at risk if that buyer later fails to complete the purchase without a valid condition to rely on.
Sellers weighing multiple offers should also consider working with a listing agent who has direct experience running a multiple-offer process under the current TRESA rules, since the choice between blind bidding and an open-offer approach affects buyer behaviour in ways that are easy to get wrong on a first attempt.
FAQ
Is blind bidding still legal in Ontario?
Yes. TRESA, effective December 1, 2023, did not ban blind bidding — it gave sellers the option to disclose competing offer details if they choose to, rather than requiring blind bidding as the default with no alternative.
Do I have to be told how many other offers there are?
Yes. Under TRESA, the seller’s agent must disclose the number of competing offers received to any buyer who submitted a valid offer, regardless of whether other offer details are shared.
Should I waive my financing condition to win a bidding war?
Only if your financing is genuinely secure — ideally with a full mortgage pre-approval, not just a rate estimate. Waiving a financing condition means you’re contractually obligated to close even if the mortgage doesn’t come through, a real risk worth weighing carefully.
What is an escalation clause?
A clause that automatically increases your offer by a set amount if a competing offer is higher, up to a maximum you specify. Many GTA real estate professionals advise against them because they reveal your maximum price to the seller in advance.
Can a seller tell me what the winning offer was?
Sellers aren’t required to disclose this after the fact, though some choose to share certain offer details during the process itself under TRESA’s open-offer option, if they’ve instructed their agent to do so.
Does every GTA home sale involve a bidding war?
No. Multiple-offer situations are more common on well-priced homes in high-demand areas and price points, but a significant share of GTA transactions involve a single offer negotiated directly between one buyer and the seller.
Can I still negotiate after losing a bidding war?
Once a seller has accepted a competing offer, that agreement is generally binding and the property is no longer available — there’s typically no second-place negotiation unless the accepted deal later falls through during its condition period.
Does an all-cash offer always win a bidding war?
Not necessarily. A cash offer removes financing risk for the seller, which can be attractive, but price, deposit size, closing date flexibility, and conditions all factor into which offer a seller ultimately chooses.
Ready to make a competitive offer with a clear strategy? Contact our team before you’re in a live bidding situation, or browse current GTA listings to see what’s actively on the market.
Sources
TRESA disclosure rules reflect the Trust in Real Estate Services Act, 2002, as amended, effective December 1, 2023. For the official regulatory framework, see the Real Estate Council of Ontario (RECO), which administers TRESA, and the Trust in Real Estate Services Act, 2002 on ontario.ca.