Are "first refusal" offers making a comeback?

Published 19 October 12 04:41 PM | Gord McCormick 

The buyer offer containing a "first refusal" condition could
be making a comeback in our current more challenging marketplace.  With a market favouring sellers for the last
many years, the first refusal offer had almost completely fallen out of
favour.  Sellers did not feel they needed
to consider such offers and buyers with a property to sell, felt that there
were ample buyers for their property and therefore felt there was little to
worry about in getting their existing property sold.

We are in a different market situation today and the use of
a "first refusal" offer in an agreement of purchase and sale may not be a bad
strategy for both buyers and sellers to consider.

See our website for a summary of the process and pros and
cons of first refusal offers:  http://www.oasisrealtyottawa.com/First_Refusal_Offers/page_2253314.html

One of the many tough decisions sellers face is whether they
should buy first or sell first.  In
recent years, it has generally been pretty easy to buy when one found an
appropriate property, knowing that there was a ready market to sell one's
existing property.  With a more difficult
selling environment right now both buyers and sellers might wish to re-consider
whether a first refusal offer is a good strategy for them.

Like most other things it has both advantages and
disadvantages and can create a "domino" effect of cascading or connected
property transactions.  However, in a
more difficult marketplace or with a unique property to sell, this approach may
be very worthwhile.  Buyers and sellers
should discuss this in detail with their REALTOR® to understand whether it is
useful for them. A REALTOR® will have all the proper legal clauses and knowledge
of the process to ensure the approach works successfully.

If you do not have a REALTOR® or have any questions on first
refusal offers, by all means give us a call.

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4693
oasisrealty@rogers.com
oasisrealtyottawa.com

 



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