Whenever you resolve to promote a home, you would possibly encounter a preemptive supply—a bid that arrives earlier than you listing publicly on the open market or attain your set supply due date. This state of affairs usually unfolds in a strong market or when your property is extremely wanted.
It’s a tempting but tough state of affairs: Do you settle for the early supply 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. But it surely would not all the time 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 aim is to promote your own home for the best worth doable on the time with the least quantity of complications.
My Journey: Choosing a Preemptive Provide
In 2025, I made the decision to promote my previous home after renting it out for a 12 months. 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 children, 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 fitting transfer. Plus, renting out single-family houses at that worth level wasn’t delivering an attractive-enough web rental yield.
In the end, I accepted a preemptive supply earlier than itemizing on the A number of Itemizing Service (MLS). It wasn’t a simple 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 Provide Or Listing On The Open Market
Right here’s the detailed thought course of that led me to just accept the preemptive supply, damaged down into seven steps to assist information your individual determination.
Frankly, to get the best worth, most sellers ought to listing on the open market—however solely if they’ve a reliable agent, a strong advertising plan, and a pretty listing worth. Opening up your own home for the world to see can backfire. The very last thing you wish to do is worth too excessive and have your own home sit for months.
Accepting a preemptive supply, like going the twin company route when shopping for, could profit extra skilled sellers. Nonetheless, even for those who’ve bought a number of properties earlier than, accepting a preemptive supply is playing which may end in leaving cash on the desk.
Let me evaluation the steps I took to resolve on which path to take.
1. Select a Prime-Tier Agent To Improve Your Probabilities Of Getting A Preemptive Provide
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 needed somebody with a deep community, a stellar observe document, 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 Prime 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 listing on the MLS, the clock begins ticking. On daily basis previous two weeks in the marketplace chips away at your closing gross sales worth as consumers begin questioning what’s improper with the place. By utilizing TAN, we might market the property discreetly with out beginning the official clock.
In addition to, 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 severe consumers whereas avoiding a lot 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:
- Listing approach under market to ignite intense demand and spark a bidding conflict.
- Listing slightly below or at honest 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 below 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 15% 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 might doubtlessly fetch in a public sale. The aim? 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.
So, we pivoted. We constructed a smooth web site for the property—full with photographs, a digital tour, and a narrative about its appeal—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.
The consequence? A preemptive supply 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, nevertheless it proved the technique had legs. The important thing was to get a legit supply after which negotiate upward in worth.
Word: These numbers are illustrative, not my precise sale figures, to make the instance concrete.
3. Negotiating To Push The Preemptive Provide Increased
Negotiation is the place offers are received or misplaced, and a actual property love letter can tip the scales. In the event you’re promoting, write a heartfelt notice about what you like about the home and why it’ll go well with the client. In the event 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.
I’ve been writing on-line since 2009 and have three bestselling books to my identify, so I do know the ability of phrases. As the vendor, I crafted a seven-page love letter, pouring in all the things: the house’s greatest options, my favourite recollections, even my tackle sturdy native financial tendencies. The consumers—a pair anticipating their first little one—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 Provide And A Counter
Their preliminary supply was $2.15 million, 7.5% above asking, however under my $2.3 million aim. 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 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 sizzling tub whether or not it was price pushing for one final counter or danger having the consumers 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 via our letters would maintain the potential consumers engaged, even when I made one closing counteroffer. Extra importantly, I knew I’d remorse not not less than asking.
So I responded via my agent with a “greatest and closing” supply of $2.315 million, $15,000 above my unique 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’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.
Negotiation isn’t simply in regards to the numbers, it’s about making a connection. That private contact may be the tipping level when {dollars} alone received’t transfer the needle. Personally, I really feel significantly better understanding I’m promoting the house to somebody who will actually profit from it and admire it. If I had sensed the client was an investor simply trying to flip it, their supply wouldn’t have carried the identical weight.
4. Setting a Minimal Preemptive Provide Worth
Earlier than you skip the open market or forsake a suggestion deadline, set up your must-have worth. If the preemptive supply 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 supply 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 provides, 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, light 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, it’s essential to accomplish that your self. In fact, you may be improper, and in the end pay the value when it comes to wasted time and promoting for a lower cost. Mine was a bit of stunned and dismissive in regards to the preliminary 7-page letter I wrote, however I believed in my technique. As a possible purchaser, I wish to know all the things there’s in regards to the property, together with what was fastened and upgraded.
Your minimal is your anchor. Set it thoughtfully, and don’t budge until the supply 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 bought, listed, and in escrow. The brisker 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 status can pry out that intel, providing you with an edge.
I realized a similar-sized dwelling close by fetched $2.45 million—nicely over asking. I beloved my place extra, however its location close to the MUNI station in a trendier neighborhood near all the things added a premium to individuals who want or wish to work eternally or cannot work at home. With that comp drawing 12 provides, I figured mine might pull not less than three and climb to $2.3 million.
Then got here a curveball: A “sizzling dwelling” comp—a full intestine rework—listed at $2 million on Redfin obtained zero provides the day after my $2.2 million bid arrived. Smaller, with inferior views, and fewer out of doors area, I’d anticipated it to promote for $2.1 million. Its flop rattled me. If it couldn’t fetch even one supply at its $2 million asking worth after two weeks in the marketplace as a “sizzling dwelling” on Redfin, possibly 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 best 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 worth.
6. Evaluating the Provide 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 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 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 all the things. Every contingency is a possible snag, a thread that might unravel the sale.
The Close to-Good Provide
The dream supply? 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 client into renegotiating. Money cuts the danger to close zero.
However there’s a catch: Money consumers know their supply’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 supply with contingencies versus a $2.3 million money supply 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 client’s pocket or a financial institution’s doesn’t change the end result.
A financed supply 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 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 nervousness.
Throughout escrow, it’s possible 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.
Onerous To Move Up Our Provide
Our supply 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 worth? I am going to 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 supply, don’t simply chase the quantity. Weigh how “clear” it’s towards your tolerance for danger and delay. Something, from a forest fireplace to a burst pipe might occur throughout escrow.
7. Counting Your Gives (Two Or Extra Is Very best)
Ideally, you desire a preemptive supply so good which might be prepared to forgo a a number of supply state of affairs for those who 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 supply, it is a lot tougher to resolve. It’s important to analyze the chance the preemptive supply, a chook within the hand, will probably 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 concern of lacking out (FOMO) to push the bidder increased. It’s a harder recreation, requiring finesse, salesmanship, and possibly even a little bit of bluffing.
We listed on TAN for every week, casting a large web amongst prime brokers. I’d hoped for a flurry of curiosity—possibly two or three provides. However we obtained only one supply. Per week’s a good 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: “Provide 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 “sizzling dwelling” comp worrying me—it listed at $2.04 million and obtained zero provides regardless of its buzz.
Did I actually wish 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 fitting one? Or did I wish to go together with the strong supply in hand and maintain issues easy? I selected the latter.
In the event you’re caught with one supply, don’t despair. Use your agent’s community, sign urgency, and negotiate arduous. However for those who can’t spark a second bid, you’re betting on that lone horse—be certain that it’s a winner. In the event you do not just like the preemptive supply, then take a look at the open market as an alternative.
Was It the Proper Name To Settle for A Preemptive?
Taking a preemptive supply leaves you questioning: What if I’d gone to market? Perhaps 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 might’ve squeezed $20,000–$40,000 extra, however I feared shedding the deal totally if I squeezed too arduous. The actual fact of the matter is, you’ll all the time wonder if you may have gotten extra after you have agreed on a promoting worth. It is simply human nature.
My mission was simplifying life, and I did. I reached my stretch aim and reinvested the home sale proceeds into shares, Treasury bonds, personal AI corporations, and personal actual property.
Most Residence Sellers Ought to Listing On The Open Market
In conclusion, until you and your agent know your native market in and out—and methods to worth accurately—itemizing your own home 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 own home’s true market worth. Even for those who do mess issues up, the market will in the end dictate what your own home is price.
I’d solely think about accepting a preemptive supply if:
- You’re an skilled vendor who is aware of the market in and out
- You will have a robust community of actual property brokers and consumers
- You worth privateness and discretion
- The supply meets or exceeds your aspirational open market worth
- You will have doubts about getting a greater supply
- You wish to save time and cut back uncertainty
As I become older (and hopefully wealthier), I place a larger premium on simplicity. I advised myself that if I might get not less than a sure worth, 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 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 supply, the consumers 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 supply 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 worth isn’t a loss.
Readers, have you ever ever accepted a preemptive supply when promoting your home? In that case, how did you identify whether or not the supply was ok? On the flip aspect, have you ever ever made a preemptive supply 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 final 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 industrial actual property valuations have dropped to ranges close to the 2008 monetary disaster lows, regardless of right this moment’s stronger economic system and more healthy family steadiness 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 Provide is a Monetary Samurai unique put up. All rights reserved. Monetary Samurai started in 2009 and is the main independently-owned private finance web site right this moment with ~1 million pageviews a month. All the pieces is written based mostly off firsthand expertise and experience.
