How to Use First Right of Refusal When Buying and Selling a Home

When you have a home to sell before you can buy another, it can be scary to receive notice of first right of refusal.

Sellers generally don't advertise that a contingent offer is acceptable. In fact, some won't even consider a contingent offer -- meaning the buyer needs to sell an existing home before the buyer can fulfill the terms of the contract to purchase -- because they don't understand how first right of refusal works.

In most cases, it's no skin off the seller's nose to accept a contingent offer. Sometimes it's the motivation needed for another buyer to submit an offer to purchase. Why? Because the desirability of a home seems to go up when somebody else wants it.

Some types of contingent contracts allow the seller to give the buyer first right of refusal when another offer is received or the seller may be free to sell to the second buyer . . . read more about First Right of Refusal.

More Articles by Elizabeth Weintraub:

• Should You Buy a Home Before Selling?
  
• Types of Contract Contingencies
  
• Top 3 Offer Negotiation Tips

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_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}