Making an offer is the moment everything from your budgeting spreadsheet becomes real. It’s also where first-time buyers make the costliest mistakes, usually because they’re moving fast and emotions are running high. Here’s what to sort out before you sign anything.
Know Your Real Ceiling, Not Just Your Pre-Approval Number
A pre-approval tells you the maximum a lender will hand you. It’s not the maximum you should actually spend. Before you write an offer, set a firm number based on your monthly carrying costs, not the headline mortgage amount.
A useful way to think about it: every extra $10,000 on your bid adds roughly $60 to your monthly payment at current rates. That sounds small in the moment, but it adds up fast if you get pulled $30,000 or $40,000 above your original budget during a bidding war. Decide on your ceiling before you’re standing in the seller’s kitchen, because it’s a lot harder to hold the line once you’ve pictured yourself living there.
Understand How Offers Work in Ontario Right Now
Ontario’s rules around competing offers changed with the Trust in Real Estate Services Act, and there’s a common misconception worth clearing up. TRESA did not ban blind bidding. What it did is give sellers the option to share certain offer details, like the highest price submitted, with other buyers if they choose to. Sellers aren’t required to disclose anything, and many still don’t.
What this means practically is that you can ask your agent whether the seller is participating in an open offer process, but you shouldn’t assume you’ll get real-time visibility into what you’re bidding against. Go in with your own number based on recent comparable sales in the neighbourhood, not a number you’re hoping to reverse-engineer from rumours about other bids.
Decide Which Conditions You’re Willing to Waive
A standard offer usually includes a financing condition and a home inspection condition, sometimes a status certificate review if you’re buying a condo. Each one exists to protect you, and waiving one is a real trade-off, not just a way to make your offer look stronger.
Financing condition. This gives you a window to confirm your mortgage is fully approved on the actual property, not just your pre-approval in general. Waiving it only makes sense if your financing is already locked in and confirmed by your lender.
Home inspection condition. This is the one buyers most often waive under pressure in a hot market, and it’s the one with the highest downside. Skipping it means you have no legal way out if the inspection would have revealed a cracked foundation, knob-and-tube wiring, or a failing roof. If you’re set on making an unconditional offer, at minimum arrange a pre-offer inspection so you’re not going in blind.
Status certificate review (condos). This document shows the building’s financial health, reserve fund, and any pending legal issues. Skipping this review on a condo purchase is a bigger risk than most buyers realize, since a poorly funded reserve can mean a large special assessment landing on your desk shortly after you move in.
Know What a Pre-Emptive or “Bully” Offer Means for You
In a competitive market, you may encounter or consider making a pre-emptive offer, sometimes called a bully offer, which is submitted before the seller’s official offer date. These typically come in at or above asking price with a short deadline, often 24 hours, designed to get the seller to accept before other buyers even get a chance to bid.
If you’re on the buying side of a bully offer, understand that sellers are under no obligation to accept it, and listing agents are required to inform other interested buyers that a pre-emptive offer has come in, giving them a chance to respond. If you’re up against one as a competing buyer, your agent should be told about it so you have the option to submit your own offer rather than being shut out.
Get Your Deposit Ready Before You Need It
Your deposit is due shortly after your offer is accepted, typically within 24 hours, and it counts toward your down payment. Have these funds sitting in an easily accessible account, not tied up in an investment that takes days to liquidate. Scrambling to move money after your offer is accepted adds unnecessary stress to an already tight timeline.
Set a Walk-Away Number and Actually Use It
It’s easy to say you’ll stick to a budget until you’re three rounds into a bidding war on a house you’ve already mentally moved into. Decide your absolute ceiling in advance, write it down, and treat it as non-negotiable. Losing a house because you held your number is a far better outcome than winning one you can’t comfortably afford for the next five years.
Lean on Your Agent and Lawyer Before You Sign
Your agent should be walking you through recent comparable sales, not just the seller’s asking price, so your offer is grounded in actual market value rather than a number the listing was designed to attract attention with. Before you submit anything, it’s also worth having your real estate lawyer review the Agreement of Purchase and Sale, especially if you’re waiving conditions or the deal includes anything unusual, like an assignment clause or a rent-back arrangement with the seller.
Common Mistakes to Avoid
Offering based on asking price alone. In many Ontario markets, homes are intentionally listed below expected sale price to generate more showings and offers. Base your number on recent sold comparables, not the listing price.
Waiving your inspection without any due diligence. If you’re going unconditional, at least get a pre-offer inspection so you know what you’re buying.
Not confirming your financing is fully locked in before waiving that condition. A pre-approval is not the same as final underwriting approval on a specific property.
Letting bidding war adrenaline push you past your ceiling. Decide your number before offer night, not during it.
Skipping legal review to move faster. A lawyer’s review typically takes a day or less and can catch issues that cost far more to fix after closing.
Frequently Asked Questions
Can I see what other buyers are offering on the same house?
Only if the seller has chosen to participate in an open offer process. Sellers are not required to disclose competing offer details, so don’t assume you’ll have visibility into the bidding.
Is it ever a good idea to waive the home inspection?
Only if you’ve had a pre-offer inspection done, or you’re buying a newer build with warranty coverage and you fully understand the risk you’re taking on. Waiving it blind is one of the highest-risk moves a buyer can make.
What happens if I can’t come up with the deposit in time?
Failing to deliver the deposit as specified in the agreement can put you in breach of contract, which can put the whole deal, and your original deposit intentions, at risk. Have the funds ready before you make an offer, not after.
How much should I offer above asking price?
There’s no universal number. It depends on how many competing offers there are, how the property was priced relative to the neighbourhood, and recent sold comparables. This is where a knowledgeable agent’s read on the local market matters most.
What’s the difference between a bully offer and a regular offer?
A bully offer is submitted before the seller’s official offer date, usually with a short deadline, to try to secure the property before a bidding war develops. A regular offer is submitted on or after the date the seller has set for reviewing offers.
Making an offer is where preparation pays off the most. The buyers who come out ahead aren’t necessarily the ones with the biggest budget. They’re the ones who walked in with a clear number, a solid agent, and a plan for exactly which conditions they were and weren’t willing to give up.
