In a competitive real estate market like Edmonton, multiple offer scenarios have become increasingly common. For buyers, they can be both thrilling and frustrating. For sellers, they often represent a golden opportunity—but they come with responsibilities too.
In this post, we’ll unpack the best practices, legal responsibilities, and strategic considerations that apply to multiple offers in Alberta, drawing directly from authoritative sources such as the Real Estate Council of Alberta (RECA), the REALTORS® Association of Edmonton (RAE), and the Alberta Real Estate Association (AREA).
Understanding the Basics of Multiple Offers
A multiple offer situation arises when two or more buyers submit offers on the same property at the same time. These scenarios tend to occur in high-demand markets, or when a property is especially desirable due to its location, price point, or features.
As RECA states, “Sellers in a multiple offer situation are in the driver’s seat. They can choose to accept the most appealing offer, reject all offers, or ask one or more buyers to improve their offers.” (RECA, 2021)
However, just because a seller has options doesn’t mean anything goes. There are ethical and legal frameworks in place to guide all parties through the process.
What Sellers Need to Know
#1. You Set the Terms, But You Must Be Fair
According to RECA, sellers are entitled to choose how offers are handled. They can:
· Accept the best offer
· Reject all offers
· Counter one or more offers (note: countering multiple offers simultaneously carries risk and should be done with caution and legal guidance)
· Ask for improved terms from some, or all, buyers
It’s crucial to remember that once you direct your real estate professional on how to proceed, they must follow your instructions exactly. “A seller's representative must treat all buyers fairly, honestly, and without discrimination,” RECA reminds us (RECA, 2023).
#2. You Don't Have to Disclose Other Offers
In Alberta, disclosure of multiple offers is optional, not mandatory. However, if a seller chooses to disclose the existence of multiple offers, their representative must do so equally to all buyers involved. According to the REALTORS® Association of Edmonton, "The seller's REALTOR® must disclose the existence of multiple offers to all other buyer's agents at the same time" (RAE, 2023).
#3. You Control the Timeline
You can decide how long to leave your property on the market before reviewing offers, and you can also establish deadlines for offer presentations. This can give you time to gather as many competitive offers as possible before making a decision. When delaying presentations, however, you must ensure a level playing field and your agent should clearly disclose any offer presentation deadline clearly to any agents making offers. Your action plan should be clearly communicated in writing to your REALTOR® in advance of the listing going live, and they should explain the risks, benefits and potential scenarios that may arise from each strategy. Doing so ensures that everyone has an equal opportunity to submit a fair offer.
What Buyers Need to Know
#1. Know What You’re Getting Into
RAE advises that buyers should be prepared to compete—which often means offering more than asking price, reducing conditions, or increasing deposit amounts (RAE, 2023).
However, AREA urges caution: “It’s important that the buyer still does their due diligence. Removing all conditions may make an offer more attractive, but it comes with risk.” (AREA, 2023)
#2. Your Agent Can Ask But Might Not Get Answers
Your agent can inquire whether there are other offers, but the seller isn’t obligated to confirm or deny. If the existence of multiple offers is disclosed, the listing agent must inform all interested parties at the same time to ensure a fair playing field (RECA, 2021).
#3. Be Strategic, Not Just Generous
While offering more money might seem like the obvious strategy, the strength of your offer can depend on more than just price. Shorter conditions, flexible possession dates, and a higher deposit can also make your offer more appealing. AREA adds, "Even if you remove conditions, you’re still taking a risk. Make sure you’re fully informed before waiving your financing or inspection" (AREA, 2023).
Legal and Ethical Considerations
RECA’s PDF guide to multiple offers clearly outlines the responsibilities of licensees (RECA, PDF):
- All offers must be presented to the seller unless instructed otherwise.
- Communications about multiple offers must be accurate and non-misleading.
(“Multiple Offers,” Real Estate Council of Alberta, PDF)
Best Practices for Buyers and Sellers
For Sellers:
- Be clear and consistent in your instructions to your real estate professional.
- Understand that delaying offer acceptance may yield more options but could also alienate strong early offers.
- Consider the strength and reliability of the offer, not just the price.
For Buyers:
- Have your financing pre-approved.
- Be ready to act quickly, but don’t waive important conditions unless you fully understand the risks.
·- Work closely with your agent to make your offer as attractive as possible.
Frequently Asked Questions (FAQ)
Q: Do sellers have to accept the highest offer?
**A:** No. Sellers can choose whichever offer best meets their needs—this might include price, conditions, possession date, or other terms.
Q: Can a seller disclose details of competing offers?
**A:** Yes, but only if they choose to. And if they do, that information must be shared with all potential buyers equally. Your agent should discuss your options in advance of the listing going live, and you will be asked to provide written confirmation of your instructions to the agent, which they must then follow.
Q: What happens if I lose out on a home due to a multiple offer?
**A:** It’s disappointing, but not uncommon. Your agent can help you re-evaluate your strategy and be ready for the next opportunity.
Q: Is there a clear process for handling multiple offers in Edmonton?
A: Yes, in Edmonton, the REALTORS® Association of Edmonton (RAE) outlines a clear process to promote fairness and transparency. If a seller plans to delay reviewing offers, that intent must be communicated to all buyer agents before the listing goes live. Any disclosure about the existence of multiple offers must be shared equally with all interested parties. Additionally, all registered offers must be presented to the seller unless otherwise instructed in writing (RAE, 2023)
Final Thoughts
Multiple offer situations can create tension and uncertainty, but they don’t have to feel like the Wild West. With the right strategy and guidance, both buyers and sellers can navigate these scenarios effectively and fairly.
If you're thinking about entering the Edmonton market, whether to buy or sell, I’m here to guide you every step of the way. I've got experience working with multiple offers on both sides of the transaction with great success. Call or text (780) 232-2064 and let's get a move on!
Sources:
· - [RECA: Multiple Offers - The Seller is in the Driver's Seat (2021)](https://www.reca.ca/2021/08/17/multiple-offers-the-seller-is-in-the-drivers-seat/)
· - [RECA: What the Seller Wants, Goes (2023)](https://www.reca.ca/2023/02/28/what-the-seller-wants-goes/)
· - [RAE: What You Need to Know About Multiple Offers](https://realtorsofedmonton.com/what-you-need-to-know-about-multiple-offers/)
· - [AREA: Best Practices Surrounding Multiple Offers](https://albertarealtor.ca/practically-speaking/blog-what-are-the-best-practices-surrounding-multiple-offers)
- [RECA: Multiple Offers PDF Guide](https://www.reca.ca/wp-content/uploads/2019/11/Multiple-Offers.pdf)
