The Truth About Bidding Wars in Montreal (What the Market Won't Tell You)

Here is something most brokers won’t say out loud: bidding wars are not a sign of a healthy market. They’re a sign of a market where buyers have lost leverage, and where emotions can override logic in dangerous ways.

The first instinct in any multiple-offer situation should be to run the numbers, not the emotions. And those numbers, more often than people expect, tell a story the excitement of the moment tends to hide. Sometimes the best outcome is the one where a buyer does not win the bidding war, because the price had crossed a line where the math no longer made sense.

How Bidding Wars Actually Start

The common belief is that bidding wars happen because too many people want the same house. That’s partially true. But here’s what’s really happening in many cases: some sellers and their brokers deliberately underprice a property to generate a rush of offers and push the final price above market value.

Some listings are priced 10-15% below comparable sales, not because the seller is generous, but because they want a bidding frenzy. The strategy works. Buyers see a great price, rush to visit, and then start competing against each other - sometimes paying more than they would have if the property had been listed at a realistic price from the start.

Understanding this tactic changes everything about how you should approach the process.

The Five Most Common Buyer Mistakes

1. Removing the inspection condition to “win”

This is the costliest of the five. In a hot market, buyers start removing conditions - particularly the inspection - to make their offer more attractive. The logic is understandable. It holds up far less well when a buyer discovers a $40,000 foundation problem two weeks after possession.

The rule is simple: never remove the inspection condition without a pre-offer inspection, meaning you hire an inspector before you submit your offer. If the seller won’t allow a pre-offer inspection on an occupied home, that itself is a red flag worth discussing.

2. Adding an escalation clause without a ceiling

Escalation clauses - “beat any offer by $5,000” - seem clever. Without a clear ceiling, they’re not. A buyer can end up $68,000 over their intended maximum because of an escalation clause with a high ceiling they hadn’t truly thought through. Set your ceiling before you write the clause, and treat it as an absolute limit.

3. Confusing winning with success

Winning a bidding war is not the same as making a good purchase. Success in real estate means buying a property that meets your needs at a price supported by real market data. The line to repeat before going into multiple offers: “There is a maximum. When it is reached, we walk. There will be another property.”

4. Letting the timeline pressure you

Sellers in multiple-offer situations often set very short offer review deadlines - sometimes 24 to 48 hours. This pressure is intentional. Take the time you need. If a property is right for you at the right price, submitting an hour before deadline is identical to submitting first.

5. Skipping comparables analysis

In a competitive moment, it’s easy to become convinced that this is the house and no other. Knowing what it’s worth still matters. Before any offer submission, a detailed comparables analysis shows exactly where fair market value sits. Going $10,000 over asking on a $600,000 property might be smart if asking was $40,000 below market. It might be terrible if asking was already $30,000 above.

What a Broker Should Actually Do in Multiple Offers

Here is the process to follow when a buyer is in a competitive situation:

• Request full disclosure on whether other offers exist and how many
• Build a comparables model the day of offer submission, not the day of the visit
• Call the listing broker to understand seller priorities (sometimes it’s not just price: closing date, flexibility on conditions, or personal connection matters)
• Identify the one or two conditions worth keeping and how to frame them professionally
• Set a hard ceiling before starting, and enforce it even when emotions run high

That last point is uncomfortable in the moment. Buyers are often frustrated in the minutes after losing a bidding war. Three months later, many of those same buyers are grateful, because they ended up in a better property at a better price.

When to Walk Away

The rule of thumb: if winning requires paying more than 8-10% above your own comparables analysis, you need a very specific reason to proceed. Maybe the property has unique characteristics not captured in comparable sales. Maybe it’s the last available lot in a school district. Maybe there’s a personal reason that genuinely has value.

But not wanting to lose is not a reason. That’s fear talking. And fear is the most expensive emotion in real estate.

The Montreal Market in 2025

Montreal’s market has moderated compared to the frenzy of 2021-2022, but well-priced properties in strong neighborhoods - NDG, Plateau, Laval’s Duvernay and Sainte-Rose sectors, Laval-des-Rapides - still attract multiple offers regularly.

The difference now is that buyers have slightly more time and slightly more leverage. Use it. Get the inspection. Check the comparables. Set the ceiling.

The house you win by keeping your head will almost always be better than the one you overpay for in a panic.

Have a specific property you’re considering? Request the comparables and know exactly what it’s worth before submitting a dollar.

Georges Matar

Residential Real Estate Broker · RE/MAX DU CARTIER INC.

Contact Georges