Newsflash: Right of first refusal

A neighbor would like to buy our house. We are planning to put it on the market in the next month or so. He asked for right of first refusal and I wondered how this works?Do we set a price and offer it to him first?Or do we put it on the market, see what offers we get and then go to him with the best price?We have a recent appraisal. Supposing we were to go to the neighbor w/o putting the house on the market, how do we set the price? I have been told to add 20% to the appraisal value and be willing to accept an offer of 20% lower. Is this good advice?[When we bought this house, it was from a neighbor, in a very neighborly way and it was an excellent decision. So selling it to a neighbor seems fitting.]Thank you!


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