Are you a seller who would consider taking a contingency-laden offer if you could keep the property on the market to attract other potential buyers? Your ace in the hole may just be the "right of first refusal" clause! In a buoyant seller's market,"Murphy's Law of Real Estate" pretty well ensures that the first offer you receive won't be quite the offer you want.It may have more than its share of shortcomings and contingencies including a potentially damaging one for you---the sale of the buyer's current house. Your dilemma is to reject the offer completely in the hope that a "cleaner" offer will come along; or take the offer, take the property off the active market and pray that the buyer's home sells sometime in the future. The best of both worlds may be using the "right of first refusal" clause in the purchase and sales agreement.

Here's how it works.

The right of first refusal clause states that, should another acceptable offer be received, the current buyer shall be notified(typically in writing) and have time (often several days up to a week or more)to remove the contingency and purchase the property.

If the buyer can't/won't remove the contingency, the buyer's earnest money is returned and the buyer becomes the one in primary position. This allows you the flexibility to take a less-than-perfect offer while keeping the property on the market to attract additional buyers.

What kind of buyer would allow the "right of first refusal" to be placed in a contract? One who knows that her offer is less-than-perfect and/or one who falls in love with the house, can't live without it and wants to attempt to "tie it up" at most any cost. For many buyers, there's strenght in knowing that you were the first one to stake your claim and that before the selller can take another offer and potentially kick you out of first position, he'll have to notify you. Depending on the buyer's level of motivation and/or financial resources, she may decide at that time to take out a bridge loan against the equity on her current house to complete the purchase.

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