While you resolve to promote a home, you would possibly encounter a preemptive provide—a bid that arrives earlier than you listing publicly on the open market or attain your set provide due date. This situation typically unfolds in a strong market or when your property is very wanted.
It’s a tempting but difficult state of affairs: Do you settle for the early provide or solid a wider internet and maintain out for one thing higher? You see this dilemma play out in skilled sports activities on a regular basis. Some gamers guess on themselves and reject assured life-changing cash for hopefully extra. Nevertheless it would not at all times work out as.
This text dives into that call, drawing from my very own expertise, that can assist you weigh your choices. In the end, your purpose is to promote your house for the best worth attainable on the time with the least quantity of complications.
My Journey: Choosing a Preemptive Supply
In 2025, I made the decision to promote my outdated home after renting it out for a 12 months. I’d bought a bigger house a number of years again and had an attachment to the outdated place.
However life was pulling me in too many instructions: managing a number of rental properties, elevating children, writing on Monetary Samurai, and ending my USA TODAY bestseller, Millionaire Milestones. Promoting the house to somebody who’d adore it as a lot as I did felt like the correct transfer. Plus, renting out single-family houses at that worth level wasn’t delivering an attractive-enough internet rental yield.
In the end, I accepted a preemptive provide earlier than itemizing on the A number of Itemizing Service (MLS). It wasn’t a straightforward selection. The choice gnawed at me as a result of I used to be dying to see how the home would fare within the open market.
Settle for A Preemptive Supply Or Listing On The Open Market
Right here’s the detailed thought course of that led me to just accept the preemptive provide, damaged down into seven steps to assist information your individual resolution.
Frankly, to get the best worth, most sellers ought to listing on the open market—however solely if they’ve a reliable agent, a stable advertising and marketing plan, and a horny listing worth. Opening up your house for the world to see can backfire. The very last thing you wish to do is worth too excessive and have your house sit for months.
Accepting a preemptive provide, like going the twin company route when shopping for, might profit extra skilled sellers. Nevertheless, even if you happen to’ve offered a number of properties earlier than, accepting a preemptive provide is playing that may lead to leaving cash on the desk.
Let me overview the steps I took to resolve on which path to take.
1. Select a High-Tier Agent To Improve Your Possibilities Of Getting A Preemptive Supply
Our first transfer was hiring a prime agent—one rating within the prime 10% of our native market based mostly on gross sales quantity. Why? We wished somebody with a deep community, a stellar observe file, and the flexibility to maneuver a property quick. That experience got here at a value: We paid a fee 0.25% increased than a competing mid-tier agent.
A key perk of going with a top-tier agent was their entry to the High Agent Community (TAN), a personal group connecting elite realtors.
Our technique hinged on leveraging TAN. Earlier than exposing the home to the open market, we’d broadcast it to this unique community of over 500 of the highest brokers. It was a method to dip our toes in, testing demand with out committing absolutely.
Right here’s why that mattered: When you listing on the MLS, the clock begins ticking. Day-after-day previous two weeks available on the market chips away at your last gross sales worth as consumers begin questioning what’s improper with the place. Through the use of TAN, we may market the property discreetly with out beginning the official clock.
Apart from, the highest 10% of brokers deal with 80–90% of all house gross sales in our space. Meaning you’re getting in entrance of nearly all of severe consumers whereas avoiding a lot of the looky-loos and tire kickers.
In case you’re aiming for a preemptive bid, I like to recommend partnering with a top-tier agent who’s plugged into TAN or an identical community. It’s like having an inside observe earlier than the race even begins.
2. Simpler To Experiment With Pricing Technique Off Market
Pricing a house is an artwork type, and there are three broad approaches:
- Listing approach beneath market to ignite intense demand and spark a bidding struggle.
- Listing slightly below or at truthful market worth, functioning like a “purchase now” worth.
- Listing above market, hoping to snag somebody so enamored they overlook the premium.
With 22 years of shopping for and promoting actual property underneath my belt, I consider pricing 5% to 10% beneath truthful market worth typically works greatest. It’s a magnet for hopeful consumers, creating competitors. In the event that they fall in love—and plenty of do—paying an additional 15% to twenty% doesn’t really feel like a stretch.
We toyed with itemizing our house at $1.99 million, roughly 15% beneath the $2.3 million I assumed it may doubtlessly fetch in a public sale. The purpose? Draw a crowd and let the bids climb. However there’s a threat: Worth too low, and a few consumers balk at leaping far above asking.
So, we pivoted. We constructed a modern web site for the property—full with images, a digital tour, and a narrative about its appeal—and listed it on TAN at $2.095 million, 8.8% beneath that $2.3 million goal. This softened the leap to $2.3 million in comparison with a $1.99 million begin. Nevertheless, it additionally filtered out consumers capped at $2 million, which reduces potential demand.
The end result? A preemptive provide rolled in at $2.2 million—5.3% above our $2.095 million ask, and 10% above our preliminary although of itemizing the house for $1.99 million. It wasn’t the $2.3 million I’d dreamed of, but it surely proved the technique had legs. The important thing was to get a professional provide after which negotiate upward in worth.
Be aware: These numbers are illustrative, not my precise sale figures, to make the instance concrete.
3. Negotiating To Push The Preemptive Supply Greater
Negotiation is the place offers are received or misplaced, and a actual property love letter can tip the scales. In case you’re promoting, write a heartfelt word about what you love about the home and why it’ll swimsuit the customer. In case you’re shopping for, clarify why it’s your dream house and also you’re the proper match. These letters forge emotional connections—essential in a numbers-driven sport.
I’ve been writing on-line since 2009 and have three bestselling books to my title, so I do know the ability of phrases. As the vendor, I crafted a seven-page love letter, pouring in every little thing: the house’s greatest options, my favourite reminiscences, even my tackle robust native financial developments. The consumers—a pair anticipating their first youngster—responded with their very own letter. As dad and mom who’d upsized after our second child, we immediately related over that shared milestone.
Preliminary Supply And A Counter
Their preliminary provide was $2.15 million, 7.5% above asking, however beneath my $2.3 million purpose. I countered at $2.36 million—9.7% increased—bundling it with a two-page letter thanking them, reinforcing our household bond, and justifying the value with market knowledge.
They got here again at $2.25 million a day later. Progress! It was so near my attain goal of $2.3 million, and I used to be tempted to just accept. I had 24 hours to reply earlier than deciding whether or not to go on the open market or not. Throughout this time, I agonized within the scorching tub whether or not it was price pushing for one final counter or threat having the consumers balk and stroll away.
The Remaining Counter
The subsequent night, whereas having fun with some tacos in Lake Tahoe after an epic day of snowboarding, I felt assured that the connection we’d constructed by way of our letters would maintain the potential consumers engaged, even when I made one last counteroffer. Extra importantly, I knew I’d remorse not at the very least asking.
So I responded by way of my agent with a “greatest and last” provide of $2.315 million, $15,000 above my authentic stretch worth. Simply half-hour later, my agent referred to as: that they had accepted. I ordered a margarita to rejoice.
Had they held agency at $2.25 million, I might’ve walked and gone to market. However $2.315 million nudged simply previous my $2.3 million purpose, and that was sufficient to seal the deal.
Negotiation isn’t simply concerning the numbers, it’s about making a connection. That non-public contact might be the tipping level when {dollars} alone received’t transfer the needle. Personally, I really feel a lot better figuring out I’m promoting the house to somebody who will actually profit from it and admire it. If I had sensed the customer was an investor simply trying to flip it, their provide wouldn’t have carried the identical weight.
4. Setting a Minimal Preemptive Supply Worth
Earlier than you skip the open market or forsake a suggestion deadline, set up your must-have worth. If the preemptive provide doesn’t hit or exceed it, listing publicly. It’s that straightforward. For me, that quantity was $2.3 million (sticking with the instance). When the preliminary provide of $2.1 million got here in, I used to be happy to have a bid however not thrilled.
A talented agent can steer negotiations, however ours was skeptical. She doubted we’d clear $2.2 million, not to mention $2.3 million, estimating $1.95 million (solely 6.6% above our 2020 buy). She pegged 2020 because the market peak, however I vehemently disagreed and made me actually query whether or not to rent her. I’d been deep within the 2020 trenches—touring houses, submitting presents, monitoring comps. I had to determine whether or not she was simply managing expectations or actually believed in her pricing thesis.
I knew values had continued to extend from 2020 till 2022, pale from 2022 till 2H 2023 after the Fed elevated charges 11 instances, then rebounded aggressively in Spring 2024. So, I took the reins, utilizing my letters and pricing technique to push us to $2.315 million.
In case your agent would not struggle aggressively for you, you could achieve this your self. After all, you is also improper, and in the end pay the value when it comes to wasted time and promoting for a lower cost. Mine was just a little shocked and dismissive concerning the preliminary 7-page letter I wrote, however I believed in my technique. As a possible purchaser, I wish to know every little thing there may be concerning the property, together with what was mounted and upgraded.
Your minimal is your anchor. Set it thoughtfully, and don’t budge except the provide aligns together with your targets.
5. Analyzing Latest Comparable Gross sales
I didn’t pluck my aspirational promoting worth of $2.3 million out of skinny air. It got here from poring over comparable gross sales (comps) from the previous 12 months—houses offered, listed, and in escrow. The more energizing the information, the higher. The trickiest half? Estimating what houses nonetheless in escrow will shut at, since brokers guard these figures till the ink dries. An skilled agent with a powerful popularity can pry out that intel, providing you with an edge.
I discovered a similar-sized house close by fetched $2.45 million—properly over asking. I cherished my place extra, however its location close to the MUNI station in a trendier neighborhood near every little thing added a premium to individuals who want or wish to work perpetually or cannot work at home. With that comp drawing 12 presents, I figured mine may pull at the very least three and climb to $2.3 million.
Then got here a curveball: A “scorching house” comp—a full intestine rework—listed at $2 million on Redfin obtained zero presents the day after my $2.2 million bid arrived. Smaller, with inferior views, and fewer outside house, I’d anticipated it to promote for $2.1 million. Its flop rattled me. If it couldn’t fetch even one provide at its $2 million asking worth after two weeks available on the market as a “scorching house” on Redfin, perhaps it’d promote for $100,000 much less. Doubt seeped in, and I trimmed my minimal threshold worth from $2.35 million to $2.3 million.
Comps are your compass, however markets can shift quick. One of many biggest dangers sellers have is being overly biased on how superior they assume their house is. Similar to the flexibility to purchase the dip requires eradicating emotion, so does promoting a home for the utmost worth.
6. Evaluating the Supply Past Worth
Worth grabs headlines, however a suggestion’s “cleanliness” could make or break its enchantment. Past the greenback quantity, you’ve obtained to scrutinize the closing timeline, contingencies, and any situations tied to the acquisition. These components decide how doubtless the deal is to shut—and the way a lot stress you’ll endure alongside the way in which. Let’s break it down.
Most house gross sales shut in 30 to 45 days, typically saddled with contingencies: inspection (consumers can again out or demand repairs if points come up), financing (the deal hinges on their mortgage approval), and even house insurance coverage these days.
Some consumers toss in additional wrinkles, like needing to promote their present house first—a domino impact that may delay or derail every little thing. Every contingency is a possible snag, a thread that would unravel the sale.
The Close to-Excellent Supply
The dream provide? All money, no contingencies, and a lightning-fast shut. Why? It’s as near a positive factor as you get. No financial institution can deny a mortgage; no inspection can spook the customer into renegotiating. Money cuts the danger to close zero.
However there’s a catch: Money consumers know their provide’s attract, in order that they typically bid decrease, banking on sellers prioritizing certainty over prime greenback. You would possibly face a dilemma—say, a $2.35 million financed provide with contingencies versus a $2.3 million money provide that’s clear and fast. It’s a trade-off between maximizing revenue and minimizing threat.
I’ve purchased properties each methods—money and loans—so I’m much less dazzled by money than some sellers. At closing, the cash hits your account both approach; whether or not it’s from the customer’s pocket or a financial institution’s doesn’t change the end result.
A financed provide with no financing contingency (that means they waive the mortgage approval escape hatch) can rival money’s reliability. Nonetheless, I get why sellers swoon for money. There’s a psychological consolation in figuring out no lender can meddle.
Then there’s the closing timeline. A brief shut—say, 10 or 15 days—slashes your carrying prices: property taxes, mortgage curiosity, or misplaced rental revenue. It additionally shrinks the window for catastrophe. Promoting a home is nerve-wracking—contingencies amplify the nervousness.
Throughout escrow, chances are you’ll begin imagining worst-case eventualities: a pipe bursts mid-escrow, or, the home burns down earlier than closing, voiding the deal. The shorter the escrow, the much less time you spend sweating these hypotheticals.
Arduous To Go Up Our Supply
Our provide was a magnificence: all money, no contingencies, and a 10-day shut. After countering twice, I obtained to my aspirational gross sales goal determine, so I accepted.
Was $2.315 the best attainable worth? I will by no means know for positive. However its cleanliness tipped the scales. Velocity and safety outweighed the prospect of compressing out a bit extra on the open market.
When evaluating your provide, don’t simply chase the quantity. Weigh how “clear” it’s towards your tolerance for threat and delay. Something, from a forest fireplace to a burst pipe may occur throughout escrow.
7. Counting Your Affords (Two Or Extra Is Ultimate)
Ideally, you need a preemptive provide so good which can be keen to forgo a a number of provide situation if you happen to listing on the open market. Even higher is receiving a number of preemptive presents, a uncommon situation. It’s a vendor’s dream, like an public sale unfolding in your favor.
With only one preemptive provide, it is a lot tougher to resolve. It’s important to analyze the likelihood the preemptive provide, a fowl within the hand, will likely be increased with higher phrases than all different unknown presents sooner or later. You’re the one who has to create competitors, stoking want and concern of lacking out (FOMO) to push the bidder increased. It’s a more durable sport, requiring finesse, salesmanship, and perhaps even a little bit of bluffing.
We listed on TAN for every week, casting a large internet amongst prime brokers. I’d hoped for a flurry of curiosity—perhaps two or three presents. However we obtained only one provide. Every week’s a decent window; most consumers want extra time to tour, crunch numbers, and commit. Nonetheless, that lone preliminary bid at $2.1 million gave us one thing to work with.
In Search For Extra Affords That Did not Come
With solely 24 hours to reply, we didn’t sit idle. My agent despatched a blast to TAN: “Supply incoming—any takers?” We hosted personal showings for her prime shoppers, hoping to drum up a rival bid. Sadly, nothing in writing materialized. The silence was deafening, particularly with that “scorching house” comp worrying me—it listed at $2.04 million and obtained zero presents regardless of its buzz.
Did I actually wish to roll the cube, spend at the very least two extra weeks advertising and marketing the home on the open market, hope that robust presents would are available, after which cross my fingers that we selected the correct one? Or did I wish to go along with the stable provide in hand and maintain issues easy? I selected the latter.
In case you’re caught with one provide, don’t despair. Use your agent’s community, sign urgency, and negotiate laborious. However if you happen to can’t spark a second bid, you’re betting on that lone horse—be certain that it’s a winner. In case you do not just like the preemptive provide, then take a look at the open market as a substitute.
Was It the Proper Name To Settle for A Preemptive?
Taking a preemptive provide leaves you questioning: What if I’d gone to market? Possibly a wild purchaser with an inexperienced agent would’ve inspired their shopper to pay approach above market. I’ve seen it occur a number of instances earlier than.
Put up-deal, I believe I may’ve squeezed $20,000–$40,000 extra, however I feared dropping the deal totally if I squeezed too laborious. The very fact of the matter is, you’ll at all times wonder if you can have gotten extra after you’ve got agreed on a promoting worth. It is simply human nature.
My mission was simplifying life, and I did. I reached my stretch purpose and reinvested the home sale proceeds into shares, Treasury bonds, personal AI firms, and personal actual property.
Most Dwelling Sellers Ought to Listing On The Open Market
In conclusion, except you and your agent know your native market in and out—and worth appropriately—itemizing your house on the open market is the safer guess. So long as you don’t botch the pricing or advertising and marketing, the open market is the easiest way to find out your house’s true market worth. Even if you happen to do mess issues up, the market will in the end dictate what your house is price.
I’d solely take into account accepting a preemptive provide if:
- You’re an skilled vendor who is aware of the market in and out
- You’ve a powerful community of actual property brokers and consumers
- You worth privateness and discretion
- The provide meets or exceeds your aspirational open market worth
- You’ve doubts about getting a greater provide
- You wish to save time and cut back uncertainty
As I become older (and hopefully wealthier), I place a higher premium on simplicity. I advised myself that if I may get at the very least a sure worth, I’d promote—and I did. And keep in mind, I’m an actual property fanatic who visits open homes each weekend for enjoyable and market analysis.
Certain, making more cash is at all times good. However at this stage of life, a easy transaction holds much more worth. And who is aware of, had I handed on the preemptive provide, the consumers may need moved on and by no means submitted a bid as soon as I went to market. I may have ended up with just one provide beneath what they initially proposed.
I’ll by no means know for positive. However what I do know is that this: locking in a win at your aspirational worth isn’t a loss.
Readers, have you ever ever accepted a preemptive provide when promoting your home? In that case, how did you establish whether or not the provide was ok? On the flip facet, have you ever ever made a preemptive provide to purchase a home and felt you secured a greater deal due to it? What different methods ought to sellers and consumers take into account to make sure they get the very best end result?
In case you’re trying to spend money on actual property passively, try Fundrise—my most popular personal actual property platform. Fundrise focuses on high-quality residential and industrial properties within the Sunbelt, the place valuations are decrease and yields are increased. After promoting my home, I invested a portion of the proceeds in Fundrise.
Some business actual property valuations have dropped to ranges close to the 2008 monetary disaster lows, regardless of immediately’s stronger economic system and more healthy family stability sheets. Seeing this as a possibility, I’m dollar-cost averaging into the sector with my home-sale proceeds whereas costs stay engaging.
Fundrise is a long-time sponsor of Monetary Samurai and I’ve invested $300,000+ with them to date.
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Deciding On Whether or not To Settle for A Preemptive Supply is a Monetary Samurai authentic put up. All rights reserved. Monetary Samurai started in 2009 and is the main independently-owned private finance website immediately with ~1 million pageviews a month. All the pieces is written based mostly off firsthand expertise and experience.
