Homebuyers Near Toronto, Canada Gain Leverage to Demand Repairs and Inspections

Written by:

Rudi Davis

Date:

19 Apr 2026

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After several years of rapid, no-conditions bidding wars, homebuyers are now approaching purchases with greater caution and negotiation. Buyers who once rushed to secure homes are now insisting on repairs and including conditions in their offers, leading to more complex deals and transaction chains not seen since 2017.

Andra Arnold, broker and team lead at Andra Arnold & Associates with Royal LePage Royal City Realty, says this new selectivity reflects a clear shift in negotiating power. As inventory rises and competition wanes, buyers no longer accept properties as-is. They are now comfortable demanding repairs or concessions, even in multiple-offer situations.

“Buyers got tired of having no choices and making instant decisions. Now, people are more particular and demanding about repairs or deficiencies in the properties.”

In Guelph, Ontario, Arnold observes that even listings attracting several offers are selling with conditions attached — typically for financing, inspection, and insurance. This marks a clear departure from the 2021–2023 market, when buyers routinely waived all conditions to stay competitive.

Buyers Regain Negotiating Leverage

This increase in buyer selectivity is not causing deals to collapse after contracts are signed, but it is making negotiations more complicated and drawn out. In Ontario, closings remain reliable once a contract becomes firm. The challenge now is reaching that point, as buyers and sellers navigate more demanding negotiations.

“We’re not seeing many houses fail to close. The difficulty is in bringing deals together. There are more concessions required, especially from sellers.”

Sellers are feeling the impact most acutely. They must now accommodate buyer requests for repairs, price reductions, or other concessions that would have been unthinkable during the market’s peak. Sellers who bought at inflated prices during the boom and are now overleveraged may find it financially impractical to meet these demands.

This shift in negotiating power is most pronounced for homeowners who purchased between 2021 and 2023 at the height of the market. Many now face negative equity, which makes it difficult to accept lower prices or absorb repair costs. Arnold notes these are the most challenging conversations for agents, as sellers in this position often lack the financial flexibility to meet buyer demands.

“The ones that paid those massive inflated prices and are overleveraged are the hardest to talk to about listing lower. Some are facing negative equity in their property.”

Sale Conditions Create Domino Chains

One of the most significant changes in today’s market is the resurgence of sale-of-property conditions. These clauses make a buyer’s offer dependent on selling their existing home, sometimes linking multiple transactions in a chain. When each buyer relies on selling their own property to move forward, a single failed sale can unravel several deals.

“We are seeing a ton of sales of property conditions. There’s more of that domino effect — one property sold conditionally on the sale of another, and that one is conditional on yet another. We haven’t seen this since 2017, and before that, it was more common in the late 2000s.”

These transaction chains add considerable complexity for agents and clients alike. Every property in the chain must complete its own negotiation and due diligence before the entire sequence can become firm. This structure extends timelines and increases the risk that a single issue could disrupt multiple sales.

Sale-of-property conditions are a hallmark of balanced or buyer-friendly markets, where buyers have enough leverage to impose conditions and sellers must accept them to close. The return of these conditions also reflects tighter affordability. Buyers who could have carried two properties during the low-rate years of 2021–2023 now need to sell before purchasing. Rising borrowing costs and stricter lending standards have made it riskier and more expensive for buyers to own two homes simultaneously.

Multiple Offers, More Conditions

Even in situations with multiple offers, buyers in Guelph can now secure properties under standard conditions. This is a major change from the peak market, when competition forced buyers to waive all protections and take on significant risk.

Some areas outside Guelph still see no-condition bidding wars. Within the city, however, higher inventory has shifted the balance. Sellers can no longer dictate terms, and buyers are less willing to accept the risks of waiving inspections or financing clauses.

This change reflects both increased supply and buyer fatigue. Many buyers who purchased with no conditions during the boom faced unexpected repair costs or financing problems. Now, with more options available, buyers are prioritizing due diligence and negotiating power over speed.

For sellers, this environment brings new uncertainty. Conditional offers mean deals can fall through during the condition period. Properties that linger on the market force sellers to weigh whether to accept conditional offers or wait for a firmer commitment. Arnold advises that realistic pricing is essential — overpriced homes are unlikely to attract offers, conditional or otherwise.

“It’s not a time to test the market. That was possible when things moved quickly and favored sellers, but now it’s about being upfront and realistic to avoid disappointment.”

Market Outlook: Patience Required

Arnold expects that conditional offers and complex transaction structures will remain common as long as inventory stays high relative to buyer demand. For buyers, this is an opportunity to conduct thorough inspections and negotiate better terms. For sellers, it means accepting longer timelines and greater uncertainty.

The return of conditions and sale-of-property chains signals a lasting shift away from the high-pressure, rapid-fire transactions of the pandemic era. Both buyers and sellers are adjusting to a more deliberate, negotiation-heavy process that more closely resembles historical market norms.

In the future, buyers can expect greater leverage to protect their interests, while sellers will need to price competitively and prepare for extended negotiations. The current environment rewards patience, flexibility, and a willingness to work through more complex deals. For real estate professionals, managing these expectations and guiding clients through longer, more intricate transactions is now a central part of the job.