First Right of Refusal - Virginia Beach Neighborhoods

If you are like many people in the market to buy a new home, you need to sell your current home first. You have several options.

Make on offer contingent upon the sale of your current home – I am not a big fan of this option because it doesn’t really buy you anything. The seller will more than likely add a term to the contract know as “a first right of refusal.”  If another buyer comes along and wants to buy the house, you will have a certain time period, usually 48 hours, to remove the contingency, after which your contract is void.

If you put down a nonrefundable deposit, let’s say $10000, it is possible the seller will leave out the first right of refusal, but then you run the risk of losing your deposit if your current home doesn’t sell.

Close on both your current house and your new house on the same day – This is my favorite solution. But you have to put your current house on the market and have a solid offer in hand before making an offer on your new home. You can still make the offer on the new home contingent upon the sale of your old home, but the seller is much more likely to take it. Again, this is my favorite solution.

Lease with an option to buy – Let’s say your old home hasn’t sold in San Diego and you are arriving here in Virginia Beach tomorrow. What can you do? Since you want to buy a house and you need a place to live, you can find a seller who is open to an “early possession agreement.” This allows you to move into the house you want to buy before you actually own it. However, put yourself in the seller’s shoes. Would you want someone moving into your house and paying rent when you really wanted to sell it? Perhaps he needs to sell his house before he can buy his next one, just like you! In this situation, the seller will likely ask for some kind of guarantee that you will buy the house. Depending on the price of the house, this could be a five or ten thousand dollar nonrefundable deposit, or more, on top of a monthly rent. If everything works out, your deposit goes towards the purchase price. This is why it is important that you have realistic expectations concerning the future sale price of your current house. Just so you know, I have yet to run into someone whose home has sold for more than they thought it would.

There are some other subtle variations on these three options, but every sale is different. The trick is finding a solution that is acceptable to both the buyer and the seller. As I always say, “you’ll never know until you ask.” That’s why it always helps to ask with a fair offer and a smile on your face!
If you have any questions about your unique situation, please call or email. I’ll be happy to discuss your options.