If 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 sturdy market or when your property is very wanted.
It’s a tempting but difficult state of affairs: Do you settle for the early supply or forged 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. 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 purpose is to promote your private home for the very best value attainable 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 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 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 best transfer. Plus, renting out single-family houses at that value level wasn’t delivering an attractive-enough internet 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 Record 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 resolution.
Frankly, to get the very best value, 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 value. Opening up your private home for the world to see can backfire. The very last thing you wish to do is value too excessive and have your private home sit for months.
Accepting a preemptive supply, like going the dual agency route when shopping for, might profit extra skilled sellers. Nevertheless, even if you happen to’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 assessment the steps I took to resolve on which path to take.
1. Select a High-Tier Agent To Enhance Your Possibilities Of Getting A Preemptive Provide
Our first transfer was hiring a top agent—one rating within the high 10% of our native market primarily based on gross sales quantity. Why? We needed somebody with a deep community, a stellar monitor 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 solution 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. Each day previous two weeks in the marketplace chips away at your ultimate gross sales value as patrons begin questioning what’s mistaken 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. Meaning you’re getting in entrance of the vast majority of critical patrons 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 the same community. It’s like having an inside monitor 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:
- Record manner under market to ignite intense demand and spark a bidding conflict.
- Record just below or at truthful market worth, functioning like a “purchase now” value.
- Record 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% under truthful market worth usually works greatest. It’s a magnet for hopeful patrons, creating competition. 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 probably fetch in a public sale. The purpose? Draw a crowd and let the bids climb. However there’s a danger: Worth too low, and a few patrons 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 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 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, however it proved the technique had legs. The important thing was to get a reputable supply after which negotiate upward in value.
Notice: These numbers are illustrative, not my precise sale figures, to make the instance concrete.
3. Negotiating To Push The Preemptive Provide Larger
Negotiation is the place offers are received or misplaced, and a real estate love letter can tip the scales. In case you’re promoting, write a heartfelt be aware about what you love about the home and why it’ll go well with the client. 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 recreation.
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 recollections, even my tackle sturdy local economic trends. The patrons—a pair anticipating their first little one—responded with their very own letter. As mother and father 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 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 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 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 patrons balk and stroll away.
The Ultimate Counter
The following night, whereas having fun with some tacos in Lake Tahoe after an epic day of skiing, 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 ultimate counteroffer. Extra importantly, I knew I’d remorse not not less than asking.
So I responded by means of my agent with a “greatest and ultimate” supply 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 have fun.
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 in regards to the numbers, it’s about making a connection. That non-public contact could be the tipping level when {dollars} alone received’t transfer the needle. Personally, I really feel a lot better understanding I’m promoting the house to somebody who will really profit from it and recognize 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 proposal deadline, set up your must-have value. If the preemptive supply doesn’t hit or exceed it, listing publicly. It’s that easy. 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, tracking 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 accomplish that your self. After all, you may be mistaken, and in the end pay the worth by way of wasted time and promoting for a lower cost. Mine was a little bit 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 every little thing there’s in regards to the property, together with what was mounted and upgraded.
Your minimal is your anchor. Set it thoughtfully, and don’t budge except the supply aligns along with your targets.
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 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, supplying you with an edge.
I realized a similar-sized house 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 close to everything added a premium to individuals who want or wish to work endlessly or cannot work at 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 “sizzling house” comp—a full intestine transform—listed at $2 million on Redfin bought 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 supply at its $2 million asking value after two weeks in the marketplace as a “sizzling house” 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 buy the dip requires eradicating emotion, so does promoting a home for the utmost value.
6. Evaluating the Provide Past Worth
Worth grabs headlines, however a proposal’s “cleanliness” could make or break its enchantment. Past the greenback quantity, you’ve bought 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 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 every little thing. 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 chance to close zero.
However there’s a catch: Cash buyers know their supply’s attract, in order that they usually bid decrease, banking on sellers prioritizing certainty over high 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 manner; 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, chances are 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.
Exhausting To Go Up Our Provide
Our supply was a magnificence: all money, no contingencies, and a 10-day shut. After countering twice, I bought to my aspirational gross sales goal determine, so I accepted.
Was $2.315 the very best attainable value? 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 hearth to a burst pipe may occur throughout escrow.
7. Counting Your Provides (Two Or Extra Is Ultimate)
Ideally, you need a preemptive supply so good which might be keen to forgo a a number of supply state of affairs if you happen to 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. You must analyze the chance the preemptive supply, a chook within the hand, can be increased with higher phrases than all different unknown provides sooner or later. You’re the one who has to create competitors, stoking need and concern of lacking out (FOMO) to push the bidder higher. 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 internet amongst high brokers. I’d hoped for a flurry of curiosity—possibly two or three provides. However we bought only one supply. Per 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: “Provide 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 “sizzling house” comp worrying me—it listed at $2.04 million and bought zero provides regardless of its buzz.
Did I actually wish to roll the cube, spend not less than two extra weeks advertising and marketing the home on the open market, hope that sturdy provides would are available, after which cross my fingers that we selected the best one? Or did I wish to go along with the stable supply in hand and maintain issues easy? I selected the latter.
In case you’re caught with one supply, don’t despair. Use your agent’s community, sign urgency, and negotiate onerous. However if you happen to can’t spark a second bid, you’re betting on that lone horse—make sure that it’s a winner. In case 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? 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 instances earlier than.
Put up-deal, I feel I may’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 ponder whether you possibly can 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 stretch purpose and reinvested the house sale proceeds into shares, Treasury bonds, private AI companies, 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 in and out—and the best way to value appropriately—itemizing your private home 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 one of the best ways to find out your private home’s true market worth. Even if you happen to do mess issues up, the market will in the end dictate what your private 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 might have a robust community of actual property brokers and patrons
- You worth privateness and discretion
- The supply meets or exceeds your aspirational open market value
- You might have doubts about getting a greater supply
- You wish to save time and scale back uncertainty
As I grow old (and hopefully wealthier), I place a better premium on simplicity. I informed myself that if I may get not less than 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.
Certain, making more cash is all the time 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 supply, 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 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 value isn’t a loss.
Readers, have you ever ever accepted a preemptive supply when promoting your home? In that case, how did you establish 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 patrons think about to make sure they get the absolute best end result?
In case you’re trying to spend money on actual property passively, try 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 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 steadiness 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 date.
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Deciding On Whether or not To Settle for A Preemptive Provide is a Monetary Samurai authentic submit. All rights reserved. Monetary Samurai started in 2009 and is the main independently-owned private finance website right now with ~1 million pageviews a month. All the pieces is written primarily based off firsthand expertise and experience.
