Right of First Refusal

[kl9]

Trying to get a neighbor to give me right of first refusal on his land adjacent to mine. So far he has shown absolutely no interest in doing so. He believes (as does his RE agent) that it will deter his property's value. I'm going to offer him $$ for the right and see if he bites. Any advice? Has anyone done this before and what amount of $$ did it take? ANY input is appreciated.

Thanks

 

[MoBuckChaser]

Why would he want to tie it up like that for a non serious buyer?

 

[bueller]

I would back off. You piss him off by pushing to much and he will will sell it to someone else for less money just to keep it out of your hands.

 

[kl9]

Why would he want to tie it up like that for a non serious buyer?

Never said I wasn't serious. He just isn't ready to sell.

 

[MoBuckChaser]

Never said I wasn't serious. He just isn't ready to sell.

You said he has a RE Agent, I thought is was for sale? If it ain't for sale, just let the guy know you are interested and let him call you when it is.

 

[kl9]

Sorry I see how that is misleading. He recently sold land (not the piece I want) to me and I want a right of 1st ref on the stuff he isn't ready to sell yet. Sounds like backing out and being patient might be the way to go...

 

[wiscwhip]

Kaleb, is this the piece that is just to the east/northeast of the place you just bought?

EDIT: Nevermind................^^^.............:):);)

 

[wiscwhip]

I would just ask him that when he is ready to sell, he give you a call with his asking price a few days before he decides to list it, thus giving you a chance to make a first offer.

 

[kl9]

Kaleb, is this the piece that is just to the east/northeast of the place you just bought?

EDIT: Nevermind................^^^.............:):);)

No it is land that was never on the market, but owned by the seller.

 

[Boll Weevil]

As others suggested, just let him know you're interested if he ever decides to sell. In many cases these are "gentleman's agreements" among good neighbors and I've found that more often than not they remember you 1st. A strong prospective buyer is great for a future seller to have in their hip pocket..just have all your ducks in a row and be ready to go when they are.

 

[wiscwhip]

You could always use the argument that you want to "keep the farm together", sometimes that will persuade an old timer into giving you a first shot at it, especially if you currently own an adjacent piece.

 

[H20fwler]

All the farm ground I have bought has been person to person never any real estate agent or third party involved.
Like others have said let him know your 100% wanting to buy, no need acting like a picky buyer now he knows you want it. Probably won't be as much wiggle room on price now if any. If you really want it, you need to offer pretty close to his asking price if he does decide to sell and be prepared to pay it if he says no or be ready to walk away from it.

 

[Bill]

I think you have the right idea now. Just let him know you would like to buy it. I wouldn't push the first right deal. He will remember you.

I have politely reminded my neighbor once a year for 10 years. Something tells me if he ever decides to sell, he'll call me.

 

[Tree Spud]

Trying to get a neighbor to give me right of first refusal on his land adjacent to mine. So far he has shown absolutely no interest in doing so. He believes (as does his RE agent) that it will deter his property's value. I'm going to offer him $$ for the right and see if he bites. Any advice? Has anyone done this before and what amount of $$ did it take? ANY input is appreciated.

Thanks

Why would he agree to a lesser offer that might restrict his ability to negotiate freely and close a deal cleanly?

Sounds like he knows you and may sense you are trying to low ball him.

If you want it, make a real offer ... money talks, bullshtz walks ...

 

[kl9]

Why would he agree to a lesser offer that might restrict his ability to negotiate freely and close a deal cleanly?

Sounds like he knows you and may sense you are trying to low ball him.

If you want it, make a real offer ... money talks, bullshtz walks ...

I feel my initial post is throwing people for a loop as I included a comment about a RE agent. The land is not for sale and the RE agent is not in the picture. I have already bought land from the individual and wanted a right on stuff he isn't ready to sell yet. It's not that I'm not willing to make an offer. I've decided to sit tight for now.

 

[CedarSwamp]

We see these quite a bit...especially when a buyer has bought land from a seller I always recommend that they ask for a right of first refusal on the seller's other properties and they give quite often will do it for the buyer. Especially when the seller isn't ready to sell, but the seller is open to someday selling to that same buyer. Sometimes, like you stated, money is exchanged. I've seen it too many times that a seller tells someone that they'll sell it to them someday, only to sell it to someone else without telling the buyer or if they die and the property goes to the Estate the Estate often doesn't care who buys it.

A right of first refusal shouldn't have much affect on the value of the property as the seller is free to market the property and get their highest bid and then if you don't match that bid they can sell it to the highest bidder.

I hope the seller has a clear understanding what a Right of First Refusal means as I can understand it will reduce his control on picking who gets the property, but it should have no affect on the market value of the property.

It is entirely the seller's (future seller) decision to give you the Right of First Refusal, but I don't imagine it would hurt you too much to periodically check in with him regarding getting that from him or about selling it to you. It'll be a reminder that you're interested in it and considering you have already bought property from him and probably have a good relationship I'm sure you can do this without being a pest.

 

[MoBuckChaser]

"We see these quite a bit...especially when a buyer has bought land from a seller I always recommend that they ask for a right of first refusal on the seller's other properties and they give quite often will do it for the buyer. Especially when the seller isn't ready to sell, but the seller is open to someday selling to that same buyer."

Congrats on finding some of the dumbest sellers on earth!

 

[bodie]

From a financial perspective explain to him that if he grants you a right of first refusal along with whatever monetary incentive you decide to offer now, that if and when he gets ready to sell, he can go straight to you prior to listing the property with an agent and save the commission cost. This will save him anywhere from 4 to 10 percent in closing costs. Sophisticated buyers and sellers often enter into such agreements but for some reason lay people have a hard time understanding the concept and are reluctant to enter such agreements. I suppose that's one reason the rich get richer.

 

[Tap]

I once had a lawyer tell me that the better way to word an agreement is to state that you get the 1st right to refuse the SELLING price. Otherwise, the seller can ask a ridiculously high price and when you turn it down, you've then exhausted your right.

 

[Bszweda]

I'd just let him know your interested in buying it and leave it at that. I'd think if he'd ever decided to sell it he would like to sell it without a realtor and make more money. If he ever does decide to sell offer him the highest offer and he'll likely sell it to you =)