Whenever you resolve to promote a home, you may 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 state of affairs usually unfolds in a strong market or when your property is extremely wanted.
It’s a tempting but difficult state of affairs: Do you settle for the early provide or solid 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. However it does not all the time work out as.
This text dives into that call, drawing from my very own expertise, that will help you weigh your choices. Finally, your aim is to promote your property for the best value 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In 2025, I made the decision to promote my outdated home after renting it out for a yr. I’d bought a bigger residence just a few years again and had an attachment to the outdated place.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 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.
Finally, 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 simply accept the preemptive provide, damaged down into seven steps to assist information your individual choice.
Frankly, to get the best value, most sellers ought to listing on the open market—however solely if they’ve a reliable agent, a stable advertising plan, and a horny listing 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. Nevertheless, even in the event you’ve bought 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 Enhance 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 based mostly on gross sales quantity. Why? We wished somebody with a deep community, a stellar observe document, and the power to maneuver a property quick. That experience got here at a price: We paid a fee 0.25% greater 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 strategy 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. On daily basis previous two weeks available on the market chips away at your ultimate gross sales value as patrons begin questioning what’s fallacious with the place. Through the use of TAN, we might market the property discreetly with out beginning the official clock.
Moreover, the highest 10% of brokers deal with 80–90% of all residence 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.
If you happen to’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:
- Listing approach under market to ignite intense demand and spark a bidding battle.
- Listing just below or at honest market worth as an in between
- 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 imagine pricing 5% to 10% under honest market worth usually works finest. It’s a magnet for hopeful patrons, creating competitors. In the event that they fall in love—and lots of do—paying an additional 10% to twenty% doesn’t really feel like a stretch.
We toyed with itemizing our residence at $1.99 million, roughly 15% under the $2.3 million I believed it might doubtlessly fetch in a public sale. The aim? Draw a crowd and let the bids climb. However there’s a threat: Worth too low, and a few patrons balk at leaping far above asking, which is why we did not go for possibility #1.
We constructed a modern web site for the property—full with photographs, a digital tour, and a narrative about its attraction—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.
Observe: 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 received or misplaced, and a actual property love letter can tip the scales. If you happen to’re promoting, write a heartfelt notice about what you like about the home and why it’ll swimsuit the customer. If you happen to’re shopping for, clarify why it’s your dream residence and also you’re the right match. These letters forge emotional connections—essential in a numbers-driven sport.
Your aim 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 part: the house’s finest options, my favourite reminiscences, even my tackle sturdy native financial tendencies.
The patrons—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 $2.2 million, 4.8% above asking, however under my $2.3 million aim. I countered at $2.36 million—7.2% greater—bundling it with a two-page letter thanking them, reinforcing our household bond, and justifying the worth 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 price pushing for one final counter or threat having the patrons balk and stroll away.
The Closing 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 means of our letters would hold the potential patrons engaged, even when I made one ultimate 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 ultimate” provide of $2.315 million, $15,000 above my authentic stretch value. Simply half-hour later, my agent referred to as: they’d accepted. I ordered a margarita to rejoice.
Had they held agency at $2.25 million, I’d’ve walked and gone to market. However $2.315 million nudged simply previous my $2.3 million aim, and that was sufficient to seal the deal. In a approach, I felt like $15,000 was like free bonus cash I might use to assist pay for closing prices or put money into the markets.
Negotiation isn’t simply concerning the numbers, it’s about making a connection. That non-public contact may be the tipping level when {dollars} alone received’t transfer the needle. Personally, I really feel significantly better realizing I’m promoting the house to somebody who will actually profit from it and respect it. If I had sensed the customer was an investor simply seeking 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, 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 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, you could achieve this your self or discover a new agent. After all, you is also fallacious, and in the end pay the worth when it comes to wasted time and promoting for a lower cost. Mine was somewhat stunned concerning the preliminary 7-page letter I wrote, as she’s by no means had a consumer write one like this earlier than. However I believed in my technique. As a possible purchaser, I need to know every part there’s concerning the property, together with what was mounted and upgraded. So I knew the customer would respect the small print I supplied.
Your minimal is your anchor. Set it thoughtfully, and don’t budge until the provide aligns together with your targets.
5. Analyzing Current 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 powerful fame can pry out that intel, providing you with an edge.
I realized a similar-sized residence close by fetched $2.45 million—properly over asking. I liked my place extra, however its location close to the MUNI station in a trendier neighborhood near every part added a premium to individuals who want or need to work without end or cannot make money working from home. With that comp drawing 12 provides, I figured mine might pull a minimum of three and climb to $2.3 million.
Then got here a curveball: A “scorching residence” comp—a full intestine transform—listed at $2 million on Redfin acquired zero provides 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 value after two weeks available on the market as a “scorching residence” 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 assume their house is. Identical to the power 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 acquired to scrutinize the closing timeline, contingencies, and any circumstances 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 best way. Let’s break it down.
Most residence 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 residence insurance coverage these days.
Some patrons toss in additional wrinkles, like needing to promote their present residence first—a domino impact that may delay or derail every part. 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 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 patrons know their provide’s attract, in order that they usually bid decrease, banking on sellers prioritizing certainty over prime 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 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 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 earnings. It additionally shrinks the window for catastrophe. Promoting a home is nerve-wracking—contingencies amplify the anxiousness.
Throughout escrow, you could 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 acquired to my aspirational gross sales goal determine, so I accepted.
Was $2.315 the best attainable value? I will by no means know for certain. However its cleanliness tipped the scales. Pace and safety outweighed the possibility 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 in opposition to your tolerance for threat and delay. Something, from a forest hearth to a burst pipe might occur throughout escrow.
7. Counting Your Provides (Two Or Extra Is Very best)
Ideally, you need a preemptive provide so good which might be keen to forgo a a number of provide state of affairs in the event you listing on the open market. Even higher is receiving a number of preemptive provides, 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 tougher to resolve. You must analyze the likelihood the preemptive provide, a hen within the hand, will probably be greater with higher phrases than all different unknown provides sooner or later. You’re the one who has to create competitors, stoking want and concern of lacking out (FOMO) to push the bidder greater. It’s a more durable sport, requiring finesse, salesmanship, and possibly even a little bit of bluffing.
We listed on TAN for per week, casting a large web amongst prime brokers. I’d hoped for a flurry of curiosity—possibly two or three provides. However we acquired only one provide. Per week’s a decent 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 non-public showings for her prime purchasers, hoping to drum up a rival bid. Sadly, nothing in writing materialized. The silence was deafening, particularly with that “scorching residence” comp worrying me—it listed at $2.04 million and acquired zero provides 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 sturdy provides would are available, after which cross my fingers that we selected the precise one? Or did I need to go together with the stable provide in hand and hold issues easy? I selected the latter.
If you happen to’re caught with one provide, don’t despair. Use your agent’s community, sign urgency, and negotiate onerous. However in the event you can’t spark a second bid, you’re betting on that lone horse—be sure that it’s a winner. If you happen to do not just like the preemptive provide, then take a look at 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 approach above market. I’ve seen it occur a number of instances earlier than.
Submit-deal, I believe I might’ve squeezed $20,000–$40,000 extra, however I feared dropping the deal solely if I squeezed too onerous. The actual fact of the matter is, you’ll all the time wonder if you would have gotten extra after you have 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 aim 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 earnings once more and never should take care of tenants or upkeep points.
Most Residence Sellers Ought to Listing On The Open Market
In conclusion, until you and your agent know your native market inside and outside—and find out how to value accurately—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 one of the best ways to find out your property’s true market worth. Even in the event you do mess issues up, the market will in the end dictate what your property is price.
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 might have a powerful community of actual property brokers and patrons
- You worth privateness and discretion over receiving doubtlessly prime greenback
- The provide meets or exceeds your aspirational open market value
- You might have 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 instructed myself that if I might get a minimum of a sure value, 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.
Positive, making extra money is all the time 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 patrons might need moved on and by no means submitted a bid as soon as I went to market. I might 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 home? In that case, how did you identify 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 think about to make sure they get the very best final result?
If you happen to’re seeking to put money into actual property passively, take a look at Fundrise—my most well-liked 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 greater. 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 at this time’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 enticing.
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 at this time with ~1 million pageviews a month. The whole lot is written based mostly off firsthand expertise and experience.
