While 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 situation typically unfolds in a sturdy market or when your property is extremely wanted.
It’s a tempting but tough 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 would 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 objective is to promote your property for the 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 residence just a few 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 precise transfer. Plus, renting out single-family houses at that value 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 simple 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 Provide 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 determination.
Frankly, to get the best value, most sellers ought to record on the open market—however solely if they’ve a reliable agent, a stable advertising and marketing plan, and a pretty 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 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 provide is playing which may lead to 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 Possibilities Of Getting A Preemptive Provide
Our first transfer was hiring a top agent—one rating within the prime 10% of our native market primarily based on gross sales quantity. Why? We wished somebody with a deep community, a stellar monitor 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 method 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 closing gross sales value as consumers begin questioning what’s flawed 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 residence 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.
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 an identical 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:
- Listing method under market to ignite intense demand and spark a bidding struggle.
- Listing just below or at truthful 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 below my belt, I consider pricing 5% to 10% under truthful market worth typically works greatest. It’s a magnet for hopeful consumers, creating competition. 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 residence at $1.99 million, roughly 15% under the $2.3 million I believed it might doubtlessly fetch in a public sale. The objective? Draw a crowd and let the bids climb. However there’s a threat: Value too low, and a few consumers balk at leaping far above asking, which is why we did not go for possibility #1.
We constructed a glossy 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 consumers capped at $2 million, which reduces potential demand.
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 gained or misplaced, and a real estate love letter can tip the scales. If you happen to’re promoting, write a heartfelt observe about what you love about the home and why it’ll go well with the client. If you happen to’re shopping for, clarify why it’s your dream residence and also you’re the proper 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 ability 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 robust local economic trends.
The consumers—a pair anticipating their first baby—responded with their very own letter. As dad and mom who’d upsized after our second child, we immediately linked over that shared milestone.
Preliminary Provide 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 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 sizzling tub whether or not it was price pushing for one final counter or threat 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 skiing, I felt assured that the connection we’d constructed by way of our letters would maintain the potential consumers engaged, even when I made one closing counteroffer. Extra importantly, I knew I’d remorse not no less than asking.
So I responded by way of my agent with a “greatest and closing” 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 method, I felt like $15,000 was like free bonus cash I might use to assist pay for closing prices or spend money on the markets.
Negotiation isn’t simply concerning the numbers, it’s about making a connection. That private contact may be the tipping level when {dollars} alone gained’t transfer the needle. Personally, I really feel a lot better figuring out 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 seeking to flip it, their provide wouldn’t have carried the identical weight.
4. Setting a Minimal Preemptive Provide Value
Earlier than you skip the open market or forsake a proposal deadline, set up your must-have value. 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 strongly disagreed. This disagreement made me query whether or not to rent her. I’d been deep within the 2020 trenches—touring houses, submitting gives, tracking 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 would not struggle aggressively for you, you will need to accomplish that your self or discover a new agent. After all, you is also flawed, and in the end pay the worth when it comes to wasted time and promoting for a lower cost. Mine was a bit of shocked 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 thing there’s concerning the property, together with what was mounted and upgraded. So I knew the client would admire 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 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 powerful status can pry out that intel, providing you with an edge.
I discovered a similar-sized residence close by fetched $2.45 million—effectively over asking. I beloved 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 need to work ceaselessly or cannot make money working from home. With that comp drawing 12 gives, I figured mine might pull no less than three and climb to $2.3 million.
Then got here a curveball: A “sizzling residence” comp—a full intestine rework—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 value after two weeks available on the market as a “sizzling residence” on Redfin, perhaps 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 Value
Value grabs headlines, however a proposal’s “cleanliness” could make or break its enchantment. Past the greenback quantity, you’ve received to scrutinize the closing timeline, contingencies, and any situations tied to the acquisition. These elements decide how doubtless 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, typically 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 residence insurance coverage these days.
Some consumers toss in further wrinkles, like needing to promote their present residence first—a domino impact that may delay or derail every thing. Every contingency is a possible snag, a thread that would unravel the sale.
The Close to-Excellent Provide
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 client into renegotiating. Money cuts the chance to close zero.
However there’s a catch: Cash buyers know their provide’s attract, so that they typically 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 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 method; 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 figuring out 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 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 Go Up Our Provide
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 best attainable value? I will by no means know for certain. However its cleanliness tipped the scales. Pace 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 threat and delay. Something, from a forest hearth to a burst pipe might occur throughout escrow.
7. Counting Your Affords (Two Or Extra Is Ultimate)
Ideally, you need a preemptive provide so good which can be keen to forgo a a number of provide situation if you happen to record on the open market. Even higher is receiving a number of preemptive gives, 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 important to analyze the chance the preemptive provide, a chicken within the hand, can be increased with higher phrases than all different unknown gives sooner or later. You’re the one who has to create competitors, stoking want and concern of lacking out (FOMO) to push the bidder higher. It’s a more durable recreation, requiring finesse, salesmanship, and perhaps even a little bit of bluffing.
We listed on TAN for per 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 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 Affords 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 prime shoppers, hoping to drum up a rival bid. Sadly, nothing in writing materialized. The silence was deafening, particularly with that “sizzling residence” 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 no less than two extra weeks advertising and marketing the home on the open market, hope that robust gives 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 maintain 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 exhausting. However if you happen to can’t spark a second bid, you’re betting on that lone horse—ensure that it’s a winner. If you happen to do not just like the preemptive provide, then check 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? Perhaps a wild purchaser with an inexperienced agent would’ve inspired their consumer to pay method above market. I’ve seen it occur a number of instances earlier than.
Publish-deal, I believe I might’ve squeezed $20,000–$40,000 extra, however I feared dropping the deal completely if I squeezed too exhausting. The actual fact of the matter is, you’ll all the time wonder if you may 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 house sale proceeds into shares, Treasury bonds, private AI companies, and personal actual property. It feels good to earn 100% passive earnings once more and never need to take care of tenants or upkeep points.
Most Dwelling Sellers Ought to Listing On The Open Market
In conclusion, until you and your agent know your native market inside and outside—and value accurately—itemizing your property 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 simplest ways to find out your property’s true market worth. Even if you happen to do mess issues up, the market will in the end dictate what your property is price.
I’d solely contemplate accepting a preemptive provide if:
- You’re an skilled vendor who is aware of the market inside and outside
- You’ve a powerful community of actual property brokers and consumers
- You worth privateness and discretion over receiving doubtlessly prime greenback
- The provide meets or exceeds your aspirational open market value
- You’ve 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 higher premium on simplicity. I informed myself that if I might get no 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.
Positive, 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 provide, the consumers may 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 own home? In that case, how did you establish whether or not the provide was ok? 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 consumers contemplate to make sure they get the very best final result?
If you happen to’re seeking 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 in the present day’s stronger financial 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 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 publish. All rights reserved. Monetary Samurai started in 2009 and is the main independently-owned private finance website in the present day with ~1 million pageviews a month. Every part is written primarily based off firsthand expertise and experience.
