Once you resolve to promote a home, you may 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 situation usually unfolds in a sturdy market or when your property is extremely wanted.
It’s a tempting but difficult scenario: Do you settle for the early provide or forged a wider web 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. But it surely does not at all times work out as.
This text dives into that call, drawing from my very own expertise, that will help you weigh your choices. In the end, your objective is to promote your property for the best value 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 dwelling 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 find it irresistible as a lot as I did felt like the precise transfer. Plus, renting out single-family houses at that value level wasn’t delivering an attractive-enough web 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 Checklist 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 best value, most sellers ought to record on the open market—however solely if they’ve a reliable agent, a strong advertising plan, and a gorgeous record value. Opening up your property for the world to see can backfire. The very last thing you need to do is value too excessive and have your property sit for months.
Accepting a preemptive provide, like going the twin company route when shopping for, might profit extra skilled sellers. Nonetheless, even should you’ve bought a number of properties earlier than, accepting a preemptive provide is playing that may end in 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 Probabilities Of Getting A Preemptive Supply
Our first transfer was hiring a high agent—one rating within the high 10% of our native market primarily based 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 price: 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 technique to dip our toes in, testing demand with out committing absolutely.
Right here’s why that mattered: When you record on the MLS, the clock begins ticking. Day by day previous two weeks available on the market chips away at your last gross sales value as consumers begin questioning what’s unsuitable with the place. By utilizing TAN, we may market the property discreetly with out beginning the official clock.
Moreover, the highest 10% of brokers deal with 80–90% of all dwelling gross sales in our space. Which means you’re getting in entrance of nearly all of critical consumers whereas avoiding a lot of the looky-loos and tire kickers.
Should you’re aiming for a preemptive bid, I like to recommend partnering with a top-tier agent who’s plugged into TAN or the same 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:
- Checklist approach under market to ignite intense demand and spark a bidding battle.
- Checklist slightly below or at honest market worth as an in between
- Checklist 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 imagine pricing 5% to 10% under honest market worth usually 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 10% to twenty% doesn’t really feel like a stretch.
We toyed with itemizing our dwelling at $1.99 million, roughly 15% under the $2.3 million I assumed it may probably fetch in a public sale. The objective? Draw a crowd and let the bids climb. However there’s a danger: Worth too low, and a few consumers balk at leaping far above asking, which is why we did not go for choice #1.
We constructed a modern 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. Nonetheless, it additionally filtered out consumers capped at $2 million, which reduces potential demand.
Be aware: These numbers are illustrative, not my precise sale figures, to make the instance concrete.
3. Negotiating To Push The Preemptive Supply Increased
Negotiation is the place offers are gained or misplaced, and a actual property love letter can tip the scales. Should you’re promoting, write a heartfelt word about what you love about the home and why it’ll go well with the customer. Should you’re shopping for, clarify why it’s your dream dwelling and also you’re the right match. These letters forge emotional connections—essential in a numbers-driven recreation.
Your objective as the vendor is to lock in your potential purchaser and make them negotiate with you.
I’ve been writing on-line since 2009 and have three bestselling books to my title, so I do know the facility of phrases. As the vendor, I crafted a seven-page love letter, pouring in every thing: the house’s greatest options, my favourite reminiscences, even my tackle sturdy native financial traits.
The consumers—a pair anticipating their first baby—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 $2.2 million, 4.8% above asking, however under my $2.3 million objective. I countered at $2.36 million—7.2% increased—bundling it with a two-page letter thanking them, reinforcing our household bond, and justifying the worth 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 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 consumers balk and stroll away.
The Last 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 way of our letters would preserve the potential consumers engaged, even when I made one last counteroffer. Extra importantly, I knew I’d remorse not not less than 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 value. Simply half-hour later, my agent referred to as: that they had 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. In a approach, I felt like $15,000 was like free bonus cash I may use to assist pay for closing prices or spend money on the markets.
Negotiation isn’t simply in regards to 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 understanding I’m promoting the house to somebody who will really profit from it and respect 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 value. If the preemptive provide doesn’t hit or exceed it, record 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 strongly disagreed. This disagreement made me query whether or not to rent her. I’d been deep within the 2020 trenches—touring houses, submitting provides, monitoring comps. I had to determine whether or not she was simply managing expectations or actually believed in her pricing thesis. I hoped for the previous.
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 does not battle aggressively for you, it’s essential to accomplish that your self or discover a new agent. In fact, you may be unsuitable, and finally pay the worth when it comes to wasted time and promoting for a lower cost. Mine was a bit shocked in regards to the preliminary 7-page letter I wrote, as she’s by no means had a shopper write one like this earlier than. However I believed in my technique. As a possible purchaser, I need to know every thing there’s in regards to the property, together with what was fastened and upgraded. So I knew the customer would respect the main points I offered.
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 value of $2.3 million out of skinny air. It got here from poring over comparable gross sales (comps) from the previous yr—houses bought, 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 robust repute can pry out that intel, supplying you with an edge.
I realized a similar-sized dwelling close by fetched $2.45 million—nicely over asking. I liked my place extra, however its location close to the MUNI station in a trendier neighborhood near every thing added a premium to individuals who want or need to work ceaselessly or cannot earn a living from home. With that comp drawing 12 provides, I figured mine may pull not less than three and climb to $2.3 million.
Then got here a curveball: A “scorching dwelling” comp—a full intestine transform—listed at $2 million on Redfin obtained zero provides 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 value after two weeks available on the market as a “scorching dwelling” on Redfin, possibly it’d promote for $100,000 much less. Doubt seeped in, and I trimmed my minimal threshold value 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 suppose their house is. Identical to the flexibility to purchase the dip requires eradicating emotion, so does promoting a home for the utmost value.
6. Evaluating the Supply Past Worth
Worth grabs headlines, however a suggestion’s “cleanliness” could make or break its attraction. Past the greenback quantity, you’ve obtained to scrutinize the closing timeline, contingencies, and any circumstances tied to the acquisition. These elements decide how seemingly 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 dwelling gross sales shut in 30 to 45 days, usually 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 dwelling insurance coverage these days.
Some consumers toss in further wrinkles, like needing to promote their present dwelling first—a domino impact that may delay or derail every thing. Every contingency is a possible snag, a thread that might 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 certain factor as you get. No financial institution can deny a mortgage; no inspection can spook the customer into renegotiating. Money cuts the chance to close zero.
However there’s a catch: Money consumers know their provide’s attract, in order that they usually bid decrease, banking on sellers prioritizing certainty over high greenback. You may 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 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 (which 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 understanding 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 anxiousness.
Throughout escrow, it’s possible you’ll 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.
Laborious To Cross 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 doable value? I will by no means know for certain. However its cleanliness tipped the scales. Velocity and safety outweighed the prospect 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 towards your tolerance for danger and delay. Something, from a forest hearth to a burst pipe may occur throughout escrow.
7. Counting Your Gives (Two Or Extra Is Best)
Ideally, you need a preemptive provide so good which might be keen to forgo a a number of provide situation should you record on the open market. Even higher is receiving a number of preemptive provides, 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 more durable to resolve. It’s a must to analyze the likelihood the preemptive provide, a chook within the hand, will likely be increased with higher phrases than all different unknown provides sooner or later. You’re the one who has to create competitors, stoking want and worry of lacking out (FOMO) to push the bidder increased. It’s a more durable recreation, requiring finesse, salesmanship, and possibly even a little bit of bluffing.
We listed on TAN for every week, casting a large web amongst high brokers. I’d hoped for a flurry of curiosity—possibly two or three provides. 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 Gives 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 non-public showings for her high shoppers, hoping to drum up a rival bid. Sadly, nothing in writing materialized. The silence was deafening, particularly with that “scorching dwelling” comp worrying me—it listed at $2.04 million and obtained zero provides regardless of its buzz.
Did I actually need to roll the cube, spend not less than two extra weeks advertising the home on the open market, hope that sturdy provides would are available, after which cross my fingers that we selected the precise one? Or did I need to go along with the strong provide in hand and preserve issues easy? I selected the latter.
Should you’re caught with one provide, don’t despair. Use your agent’s community, sign urgency, and negotiate laborious. However should you can’t spark a second bid, you’re betting on that lone horse—make sure that it’s a winner. Should 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.
Publish-deal, I believe I may’ve squeezed $20,000–$40,000 extra, however I feared shedding the deal solely if I squeezed too laborious. The very fact of the matter is, you’ll at all times ponder whether you would have gotten extra after you’ve got agreed on a promoting value. It is simply human nature.
My mission was simplifying life, and I did. I reached my aspirational gross sales value objective and reinvested the home sale proceeds into shares, Treasury bonds, non-public AI firms, and personal actual property. It feels good to earn 100% passive revenue once more and never must take care of tenants or upkeep points.
Most Dwelling Sellers Ought to Checklist On The Open Market
In conclusion, except you and your agent know your native market inside and outside—and find out how to value appropriately—itemizing your property on the open market is the safer guess.
So long as you don’t botch the pricing or advertising, the open market is the easiest way to find out your property’s true market worth. Even should you do mess issues up, the market will finally dictate what your property is value.
I’d solely think about accepting a preemptive provide if:
- You’re an skilled vendor who is aware of the market inside and outside
- You’ve gotten a robust community of actual property brokers and consumers
- You worth privateness and discretion over receiving probably high greenback
- The provide meets or exceeds your aspirational open market value
- You’ve gotten doubts about getting a greater provide
- You need to save time and cut back uncertainty
As I become older (and hopefully wealthier), I place a larger premium on simplicity. I informed myself that if I may get not less than a sure value, I’d promote—and I did. And bear in mind, I’m an actual property fanatic who visits open homes each weekend for enjoyable and market analysis.
Positive, 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 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 under what they initially proposed.
I’ll by no means know for certain. However what I do know is that this: locking in a win at your aspirational value isn’t a loss.
Readers, have you ever ever accepted a preemptive provide when promoting your own home? If that’s the case, how did you identify whether or not the provide was ok? On the flip aspect, 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 think about to make sure they get the very best consequence?
Should you’re trying to spend money on actual property passively, take a look at Fundrise—my most popular non-public 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 industrial actual property valuations have dropped to ranges close to the 2008 monetary disaster lows, regardless of at the moment’s stronger financial 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 this point.
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Deciding On Whether or not To Settle for A Preemptive Supply is a Monetary Samurai authentic submit. All rights reserved. Monetary Samurai started in 2009 and is the main independently-owned private finance website at the moment with ~1 million pageviews a month. Every thing is written primarily based off firsthand expertise and experience.