If you resolve to promote a home, you would possibly encounter a preemptive provide—a bid that arrives earlier than you record publicly on the open market or attain your set provide due date. This state of affairs usually unfolds in a sturdy market or when your property is very wanted.
It’s a tempting but difficult scenario: 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. However it does 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. Finally, your objective is to promote your house for the very best worth doable on the time with the least quantity of complications.
My Journey: Choosing a Preemptive Supply
In 2025, I made the decision to promote my previous home after renting it out for a yr. I’d bought a bigger house a couple of years again and had an attachment to the previous place.
However life was pulling me in too many instructions: managing a number of rental properties, elevating youngsters, writing on Monetary Samurai, and ending my USA TODAY bestseller, Millionaire Milestones. Promoting the house to somebody who’d like it as a lot as I did felt like the suitable transfer. Plus, renting out single-family houses at that worth level wasn’t delivering an attractive-enough internet rental yield.
Finally, I accepted a preemptive provide earlier than itemizing on the A number of Itemizing Service (MLS). It wasn’t a straightforward alternative. 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 Record On The Open Market
Right here’s the detailed thought course of that led me to simply accept the preemptive provide, damaged down into seven steps to assist information your individual resolution.
Frankly, to get the very best worth, most sellers ought to record on the open market—however solely if they’ve a reliable agent, a stable advertising plan, and a horny record worth. Opening up your house for the world to see can backfire. The very last thing you need 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, could profit extra skilled sellers. Nevertheless, even for those who’ve offered a number of properties earlier than, accepting a preemptive provide is playing that may end in leaving cash on the desk.
Let me assessment the steps I took to resolve on which path to take.
1. Select a High-Tier Agent To Improve Your Probabilities Of Getting A Preemptive Supply
Our first transfer was hiring a prime agent—one rating within the prime 10% of our native market primarily based on gross sales quantity. Why? We needed somebody with a deep community, a stellar observe document, 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 non-public 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 option to dip our toes in, testing demand with out committing totally.
Right here’s why that mattered: When you record on the MLS, the clock begins ticking. Each day previous two weeks available on the market chips away at your closing gross sales worth as patrons begin questioning what’s improper with the place. By utilizing TAN, we may market the property discreetly with out beginning the official clock.
In addition to, the highest 10% of brokers deal with 80–90% of all house gross sales in our space. Which means you’re getting in entrance of nearly all of critical patrons whereas avoiding many of the looky-loos and tire kickers.
In the event 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 kind, and there are three broad approaches:
- Record manner under market to ignite intense demand and spark a bidding warfare.
- Record slightly below or at truthful market worth, functioning like a “purchase now” worth.
- Record above market, hoping to snag somebody so enamored they overlook the premium.
With 22 years of shopping for and promoting actual property below my belt, I imagine pricing 5% to 10% under truthful market worth usually works finest. It’s a magnet for hopeful patrons, 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% under the $2.3 million I assumed it may doubtlessly fetch in a public sale. The objective? Draw a crowd and let the bids climb. However there’s a danger: Value too low, and a few patrons balk at leaping far above asking.
So, we pivoted. We constructed a smooth web site for the property—full with pictures, a digital tour, and a narrative about its allure—and listed it on TAN at $2.095 million, 8.8% under 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 patrons capped at $2 million, which reduces potential demand.
The outcome? 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, however it 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 gained or misplaced, and an actual property love letter can tip the scales. In the event you’re promoting, write a heartfelt observe about what you like about the home and why it’ll swimsuit the client. In the event 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 recreation.
I’ve been writing on-line since 2009 and have three bestselling books to my identify, so I do know the facility of phrases. As the vendor, I crafted a seven-page love letter, pouring in the whole lot: the house’s finest options, my favourite recollections, even my tackle robust native financial developments. The patrons—a pair anticipating their first youngster—responded with their very own letter. As mother and father who’d upsized after our second child, we immediately linked over that shared milestone.
Preliminary Supply And A Counter
Their preliminary provide was $2.15 million, 7.5% above asking, however under my $2.3 million objective. 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 information.
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 simply 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 value pushing for one final counter or danger having the patrons balk and stroll away.
The Remaining Counter
The following 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 means of our letters would maintain the potential patrons engaged, even when I made one closing counteroffer. Extra importantly, I knew I’d remorse not a minimum of asking.
So I responded by means of my agent with a “finest and closing” provide of $2.315 million, $15,000 above my authentic stretch worth. Simply half-hour later, my agent known as: they’d accepted. I ordered a margarita to have a good time.
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 objective, and that was sufficient to seal the deal.
Negotiation isn’t simply concerning the numbers, it’s about making a connection. That private contact could be the tipping level when {dollars} alone gained’t transfer the needle. Personally, I really feel significantly better realizing I’m promoting the house to somebody who will really profit from it and admire it. If I had sensed the client was an investor simply trying to flip it, their provide wouldn’t have carried the identical weight.
4. Setting a Minimal Preemptive Supply Value
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, record publicly. It’s that easy. 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 gives, 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 occasions, 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 does not battle aggressively for you, you should achieve this your self. After all, you may be improper, and finally pay the value when it comes to wasted time and promoting for a cheaper price. Mine was a bit stunned and dismissive concerning the preliminary 7-page letter I wrote, however I believed in my technique. As a possible purchaser, I need to know the whole lot 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 objectives.
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 yr—houses offered, listed, and in escrow. The more energizing the info, 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 robust fame can pry out that intel, providing you with an edge.
I discovered a similar-sized house close by fetched $2.45 million—effectively over asking. I liked my place extra, however its location close to the MUNI station in a trendier neighborhood near the whole lot added a premium to individuals who want or need to work ceaselessly or cannot earn a living from home. With that comp drawing 12 gives, I figured mine may pull a minimum of three and climb to $2.3 million.
Then got here a curveball: A “scorching house” comp—a full intestine transform—listed at $2 million on Redfin received zero gives the day after my $2.2 million bid arrived. Smaller, with inferior views, and fewer outside area, 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. Identical to the flexibility to purchase the dip requires eradicating emotion, so does promoting a home for the utmost worth.
6. Evaluating the Supply Past Value
Value grabs headlines, however a suggestion’s “cleanliness” could make or break its attraction. Past the greenback quantity, you’ve received to scrutinize the closing timeline, contingencies, and any situations tied to the acquisition. These components decide how possible 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, usually saddled with contingencies: inspection (patrons 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 patrons toss in further wrinkles, like needing to promote their present house first—a domino impact that may delay or derail the whole lot. Every contingency is a possible snag, a thread that would unravel the sale.
The Close to-Good 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 client into renegotiating. Money cuts the danger to close zero.
However there’s a catch: Money patrons know their provide’s attract, so that they usually 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 danger.
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 manner; whether or not it’s from the client’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 realizing 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, you might begin imagining worst-case situations: 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.
Onerous To Move Up Our Supply
Our provide was a magnificence: all money, no contingencies, and a 10-day shut. After countering twice, I received to my aspirational gross sales goal determine, so I accepted.
Was $2.315 the very best doable worth? I am going to by no means know for positive. However its cleanliness tipped the scales. Pace and safety outweighed the possibility of compacting out a bit extra on the open market.
When evaluating your provide, don’t simply chase the quantity. Weigh how “clear” it’s in opposition to your tolerance for danger and delay. Something, from a forest hearth to a burst pipe may occur throughout escrow.
7. Counting Your Provides (Two Or Extra Is Very best)
Ideally, you need a preemptive provide so good which can be keen to forgo a a number of provide state of affairs for those who record on the open market. Even higher is receiving a number of preemptive gives, a uncommon state of affairs. It’s a vendor’s dream, like an public sale unfolding in your favor.
With only one preemptive provide, it is a lot more durable to resolve. It’s important to analyze the likelihood the preemptive provide, a chicken within the hand, shall be increased with higher phrases than all different unknown gives sooner or later. You’re the one who has to create competitors, stoking need and worry of lacking out (FOMO) to push the bidder increased. It’s a harder recreation, 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 gives. However we received only one provide. Every week’s a good window; most patrons 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 Provides 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 received zero gives regardless of its buzz.
Did I actually need to roll the cube, spend a minimum of two extra weeks advertising the home on the open market, hope that robust gives would are available, after which cross my fingers that we selected the suitable one? Or did I need to go along with the stable provide in hand and maintain issues easy? I selected the latter.
In the event you’re caught with one provide, don’t despair. Use your agent’s community, sign urgency, and negotiate laborious. However for those who can’t spark a second bid, you’re betting on that lone horse—ensure that it’s a winner. In the event you do not just like the preemptive provide, then check the open market as an alternative.
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 consumer to pay manner above market. I’ve seen it occur a number of occasions earlier than.
Publish-deal, I believe I may’ve squeezed $20,000–$40,000 extra, however I feared dropping the deal solely if I squeezed too laborious. The actual fact of the matter is, you’ll at all times wonder if you would 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 objective and reinvested the home sale proceeds into shares, Treasury bonds, personal AI firms, and personal actual property.
Most Residence Sellers Ought to Record On The Open Market
In conclusion, except you and your agent know your native market inside and outside—and find out how to worth appropriately—itemizing your house on the open market is the safer guess. So long as you don’t botch the pricing or advertising, the open market is one of the best ways to find out your house’s true market worth. Even for those who do mess issues up, the market will finally dictate what your house is value.
I’d solely take into account accepting a preemptive provide if:
- You’re an skilled vendor who is aware of the market inside and outside
- You could have a robust community of actual property brokers and patrons
- You worth privateness and discretion
- The provide meets or exceeds your aspirational open market worth
- You could have doubts about getting a greater provide
- You need to save time and cut back uncertainty
As I become old (and hopefully wealthier), I place a larger premium on simplicity. I instructed myself that if I may get a minimum of 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 extra money is at all times good. However at this stage of life, a clean transaction holds much more worth. And who is aware of, had I handed on the preemptive provide, the patrons might 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 under 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 own home? In that case, how did you establish whether or not the provide was adequate? 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 patrons take into account to make sure they get the very best end result?
In the event you’re trying to spend money on actual property passively, take a look at 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 right now’s stronger financial system and more healthy family stability sheets. Seeing this as a chance, 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 this point.
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Deciding On Whether or not To Settle for A Preemptive Supply is a Monetary Samurai authentic publish. All rights reserved. Monetary Samurai started in 2009 and is the main independently-owned private finance web site right now with ~1 million pageviews a month. The whole lot is written primarily based off firsthand expertise and experience.
