When I buy a house, even before closing day, I start planning how to sell my house whenever the time is right. Because I am a real estate investor, I routinely buy and sell houses, and most of the time I sell them on my own, although I occasionally use a real estate agent.
So as I said, when I buy a house and begin to think about who might want to buy it from me someday, the first potential buyers I consider are my neighbors. Especially when the house was not listed on the local multiple listing service when I purchased it, the neighbors probably didn't know the property was for sale when I bought it. That means I may have an easy time of marketing it to other property owners in the neighborhood when I determine how to sell my house and when to put it on the market.
Usually I decide to resell a house in a short time frame, but other times I decide to keep it as a rental property. In any case, sometimes I use a form called Right of First Refusal with buyers who may be interested in my house for sale, but they aren't quite ready to buy when I'm selling a home.
Let me explain how a Right of First Refusal works. Basically, it involves a set price and a certain, specified time frame during which the prospective buyers can purchase the house before I offer it to other buyers. The owner of a convenience store might want the first opportunity to buy the lot next door. So he negotiates a price of $300,000 dollars, which price is good for a period of a year. That means the convenience store owner has the first chance to purchase the lot whenever it comes might be on the market. The lot owner is not obligated to sell her property at all, but if she does, he has to offer it first to the owner of the convenience store for $300,000 dollars before offering it to anyone else.
A Right of First Refusal works the same way for any property in any price range. So, for residential real estate it can hold a property so that a certain buyer has the first chance to buy it. For example, maybe your neighbors down the block are thinking about moving into assisted living, not an uncommon situation at the present time. You could get a Right of First Refusal on their house so you have the first opportunity to purchase it before any other interested buyers. Naturally, people all have their own reasons, but it's possible that my neighbors would be interested in a Right of First Refusal when am considering how to sell my house.
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