As you have likely heard, offer nights have become quite popular in Toronto. An offer night is a designated date and time where any interested buyers can submit their offer to buy a home. This is also referred to as a ‘closed bid’ system. Meaning: buyers are not aware of the other prices being submitted. Each buyer’s Realtor submits the offer to the listing Realtor before the deadline and the seller then confidentially decides which offer they would like to accept.
SOME COMMON OFFER TERMS INCLUDE;
Multiple Offers – When two or more buyers have submitted offers on a property.
Pre-emptive Offers or Bully Offers – When a buyer submits an offer to purchase a property in advance of the offer date. This type of offer is meant to motivate the seller to accept it before the offer deadline and is therefore usually much higher than the asking price. Sellers are not legally required to consider this type of offer. Usually a seller’s desire to accept pre-emptive offers is stipulated in the MLS listing.
NEGOTIATION AND SPEED IS KEY IN THESE CIRCUMSTANCES.
Given how common multiple offers are in the city it’s extremely important you find a Realtor who can think fast, act quickly and change their negotiation strategy at the drop of a hat as the night goes on. While many times it will come down to price there are instances where that’s not always the case and a little creativity can actually help secure you the home you really want.