What's involved in a private sale?

Fortunately, private sales are very straightforward!

All that is needed is for us to come to an agreement. We then set out the basics of that agreement in a letter, which we both sign and date. Make sure you mention any lighting fixtures, appliances, or other items you want to go along with the house.

Then you take a copy of the letter to your lawyer and tell him to make it into an offer. At this point, you will also be expected to have solid financing, if necessary, and proof of that financing.

Sign that offer and have your lawyer notarize it. This is your commitment to purchase the house at those conditions if I agree to it.

If you decide you really want this house, you can skip the agreement part and just give me the offer directly. If you go this route, your offer should definitely not be lower than the listed price.

At that point, you give me a copy of the signed offer. I won't sign it at that point. Instead, I will have my lawyer go over the offer and compare it to our original letter. The two should match.

If everything is in order, I will inform you that I have accepted your offer. I will sign the offer and my lawyer will notarize it.

My conditions

I have three simple conditions of sale.

1. No financial conditionals in the offer. This means that I will not look at offers which are conditional upon the sale of your home.
2. Close no later than March 2013. This one is slightly negotiable, but it will depend on the amount of your deposit.
3. Non-refundable deposit of $10,000 upon acceptance of the offer. If you want a closing date in 2012 or after March 2013, the non-refundable deposit is $15,000. This does count towards the down payment for mortgage insurance purposes.

Note to real estate agents:

If you are a buyer's agent and represent a buyer who is interested in this home, I am willing to talk. I will expect a solid offer which is enough higher than the listing price to cover my share of your commission.

What happens if there is more than one offer?

It is unlikely, but it could happen.

If more than one person gives me a notarized offer for the same amount, I will inform each person that there are other bidders and show you a copy of the other person's offer which is stripped of identifying information.

You can then decide how much higher you are willing to go, and make a new offer on that basis. If neither person wants to go higher, I will go with the first notarized offer I received.

If you are outbid, I will inform you and give you 4 business days to make a new offer. If you do not make a new notarized offer in that time, I will sign with the highest bidder up to that date.

Remember, your notarized offer is your commitment to purchase. I do not commit to sell until I accept your notarized offer.

What are the buyer's extra expenses in a private sale?

They are the same as for any other buyer in any other house sale. Ask your lawyer for details, but at a minimum you should budget for GST, land transfer tax, financial fees, and of course legal fees.