Special offer
Fred Griffin Florida Real Estate, Licensed Florida Real Estate Broker (Fred Griffin Real Estate)

Spam prevention
Rainmaker
1,052,211
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

I don't like that FRIR buyer having any control over your ability to accept a RWA buyer!

Not with that contingency and the home is not UC.

I don't like those to begin with! Especially now, in this financial climate. Too much can go sideways.

Apr 10, 2020 11:27 AM
Ambassador
3,587,960
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

 In the current market?  No that is putting seller in a vulnerable spot, so much can go sideways right now. In a hot market?  Why on earth would the buyer make the sale contingent on a home selling. At the very least get it under contract, submit the qualifications of the buyer of said home etc. And a non-refundable $1000.  No.  Way to low.  Why would a seller put themselves out there for a measly $1000.  As for Z - don't know.

Apr 10, 2020 03:23 PM
Rainmaker
1,844,301
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

It could work out but in my MLS/area we just do it as house to close but actually it's a house to sell which makes it a loser offer. Will say the agent thought it out for your seller at least with the 1K 'move it or I'll lose' money. I think that they thought this out pretty well. I might learn something from it.

But .... our MLS has no provision for this. Our contingent buyer would have first dibbs anyway in our area to proceed. In fact, our area would ask her to proceed in cash & dump that contingency. That never happens in the real world.  Some agents won't show it if they  know they are 2nd in line.

Interesting at least Fred.

Apr 10, 2020 01:10 PM
Ambassador
2,061,803
Alan May
Jameson Sotheby's International Realty - Evanston, IL
Home is where the hearth is.

Under normal circumstances I would say that changing status to First Right might cause the property to 'not be shown'.  But in real estate during the time of Corona, the likelihood is that it may not be shown anyway.

So your exposure is limited, and you are able to accept another offer, should one appear.  A full-price offer, during these strange times, is nothing to be sneezed-at. I think I would take my chances and accept

Now, that being said... I would like a lot of information about the buyer's listing... (ie: is their listing price reasonable, is it likely to be sold, what is their plan if they have no offer in 2 weeks, 4 weeks, 6-8 weeks... do they have a schedule for price reductions?... and I'd want to be regularly updated).

Apr 10, 2020 01:31 PM
Rainmaker
1,543,727
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

Sounds good to me under COVID-19 circumstances. If it were not a COVID-19Market, I'd agree more wit Candice A. Donofrio and her position. But, if my seller was in favor of it, I don't feel 48 hours would scare off buyer #2 and is worth the "bird in the hand".  You are lucky your MLS allows that, ours doesn't. We'd have to go Pending or risk staying active with "subject to cancellation of escrow" in the remarks. It's a grey area but leaning on MLS violation for us in SD,CA.

Apr 10, 2020 11:44 AM
Ambassador
3,854,909
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

We call that a kick-out clause. Specific time 24 hours, a week, etc when the buyer is notified if an offer without a contingency is received. That buyer has to prove they can move forward with the contract or gets "kicked-out".

Apr 11, 2020 08:06 PM
Rainmaker
2,390,620
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

I did that often here Fred Griffin Tallahassee Real Estate and it almost always worked well.

Apr 10, 2020 01:25 PM
Rainmaker
644,025
Greg Large
ERA Real Solutions - Grove City, OH
A Tradition of Trust

Current environment with the circumstances mentioned, depending on the location/condition/price I would not be opposed to it, with the condition I would be able to market it also, the confidence/opinion of the other agent not a factor.

Apr 10, 2020 01:14 PM
Rainmaker
5,772,575
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Fred,

I agree with Candice A. Donofrio 

Apr 10, 2020 11:30 AM
Rainmaker
5,216,398
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

It depends on your seller. Are they gamblers? Because, yes or no, they are rolling the dice.

Apr 11, 2020 06:29 AM
Rainmaker
7,836,134
Roy Kelley
Retired - Gaithersburg, MD

I would not grant a first right of refusal.

Apr 11, 2020 05:51 AM
Rainmaker
911,338
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Sellers shouldn't accept such offers. It is not in sellers best interest. After "buyer" actually sells, if sellers house is still available, and they are still interested in it, I bet the buyers offer will look much different.

Apr 11, 2020 03:49 AM
Rainmaker
763,883
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

Crap, that is what I think of it. Crap

Apr 10, 2020 01:39 PM
Rainmaker
2,781,173
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

It has the flavor of an option to purchase. If you go that way, it is pulled from the market during option period unless specified otherwise. Make it an option and add more money and time to it and if exercised option money can be credited (or not) toward purchase. Option money is not contingent on anything just a promise to hold for a specified time. If you do go along as presented, either you get a qualified buyer of which the first right to purchase triggers and if not that buyer prevails. The thing is that that buyer should not have to "wait". That means you are not really a seller or so can it be argued. Keep this simple. Stay tight with your seller who holds the key to all as to when and who to sell. 

Apr 10, 2020 12:46 PM
Rainmaker
1,311,397
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

A contingent sale is doable under the right circumstances. It is up to you and your seller to weigh the options and for your seller to make the best decision possible after you have give the best advice that you can provide.

Apr 12, 2020 05:23 PM
Rainmaker
613,494
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

Is it that he can't qualify for 2 mortgages or does not want to?

See if there is another way for him to quality.

I would be inclined not to take the deal. I think you will kill any showings.

$1000 dollars is not enough for your seller to loose to a real buyer if they came along and decided not to look at it.   

Eve

Apr 11, 2020 11:04 AM
Rainmaker
900,128
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

It seems that the 2-day first right of refusal negates the contingency clause. That clause should be taken out of the offer; as a listing agent, I never accepted those. With both provisions in, the document is contradictory and confusing. The first right of refusal seems fair and is up to the seller to accept, but must be disclosed to potential new bidders, as your MLS suggests. Get rid of the contingency clause or agents may not bring their buyers. 

Apr 11, 2020 06:00 AM
Rainmaker
3,416,038
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

It is great when their are few buyers and lots for sale. Great for a hard to sell property. Not so great if you get 5 hours in 3 days. 

Apr 11, 2020 05:22 AM
Rainmaker
1,090,637
Diana Zaccaro Broker Associate
ZOOM Realty Group - Cocoa Beach, FL
"The Accidental Blogger" Cocoa Beach, Florida

Fred, I am confused. The only times I know of FROR being used is in some condos where the docs outline the process and occasionally in a lease where the tenant may want first option to buy if the landlord later decides to sell.

What you describe sounds like a Kickout Clause vs. a First Right of Refusal and we see 72 hour kickouts frequently here.

Am I missing something?

To answer your question, with everything so unsettled I would suggest that the buyer take a bridge loan and buy the house now then deal with selling their home. Lots of unanswered questions about this scenario but at a minimum would need much more than $1,000 deposit. 

 

Apr 10, 2020 07:28 PM