Have you ever found the perfect home in downtown Toronto—stunning character, amazing location, maybe a bit of work needed—and after months of no movement, the moment you submit an offer, suddenly two other offers appear out of nowhere?
If that sounds familiar, you’re not alone. Bidding wars in the Toronto real estate market are as confusing as they are common—especially in the luxury segment. So what’s really happening behind the scenes?
Let’s unpack the psychology, strategies, and realities behind the infamous “sudden offers” phenomenon, and how savvy buyers—and their agents—can navigate it.
The “Phantom Offer” Dilemma
In a recent case, a luxury home listed near $4 million had sat on the market for months. A buyer finally submitted a fair, no-conditions offer—and within hours, two new offers were registered. The buyer was shocked and frustrated: Had other interested buyers really been waiting silently in the wings? Or was something else at play?
The truth is: offers generate offers.
When a listing lingers on the market, buyers hesitate. They assume something must be wrong. But once someone makes the first move, it validates the property’s value—and suddenly, other interested parties feel the pressure to act. This is a common dynamic, especially in high-end real estate.
Do Listing Agents “Trigger” a Bidding War?
Yes—and that’s part of their job.
Once an offer is registered, the listing brokerage system (like BrokerBay) automatically notifies all agents who previously booked a showing. A smart listing agent will also personally call warm leads to let them know it’s “now or never.”
This strategy isn’t shady—it’s strategic. A good seller agent’s duty is to get the highest price and best terms for their client. If that means creating urgency by informing other potential buyers, it’s fair game.
But can fake offers happen? In theory, yes. In practice, reputable brokerages and agents won’t risk their license or reputation on unethical tactics. While some buyers might suspect “phantom bids,” more often than not, they’re simply seeing the psychology of competition at work.
Toronto’s Real Estate Market: Still Hot at the Top
While many parts of the Toronto housing market are cooling—particularly in the condo and $1.4M–$2M range—the luxury market ($3M–$5M) operates on a different level. These buyers often have significant equity, high income, or liquid assets—and they’re less sensitive to interest rates or market headlines.
That means competition can still be fierce in certain pockets of downtown Toronto, especially for unique or character-rich homes that rarely come up for sale.
Buyer Strategies: What You Need to Know
If you’re house-hunting in Toronto—especially in the $3M+ segment—be prepared. Here are some key tips to stay ahead:
- Act Decisively, But Smartly
Just because a home has been on the market doesn’t mean you’re the only interested party. When you see value, make a strong offer—but always know your ceiling. - Choose the Right Realtor
Not all agents are created equal. Your realtor should be strategic, proactive, and unafraid to negotiate hard on your behalf. A timid agent can cost you the deal. - Understand the Game
Offers often trigger other offers. It’s not manipulation—it’s market dynamics. Don’t take it personally. Stay calm, and stick to your plan. - Be Ready for Competition
Even without offer nights, bidding wars can happen. Cash offers, short closings, and no conditions can make your offer more competitive—but only if you’re confident in the property and your finances. - Due Diligence Still Matters
Skipping inspections or financing conditions can be risky, especially on older homes. Work with professionals to protect yourself.
Final Thoughts: Transparency, Strategy, and Timing
In today’s unpredictable Toronto real estate market, transparency matters—but so does strategy. Yes, there are still frustrations and grey areas in the process, but much of what seems “shady” is often just smart negotiation.
If you’re serious about buying or selling in Toronto, the key is to work with a realtor who understands both the psychology and strategy of the market—and who’s willing to fight for your best interests.
Richard Wang 