If 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 state of affairs typically unfolds in a sturdy market or when your property is very wanted.
It’s a tempting but tough scenario: 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 wager on themselves and reject assured life-changing cash for hopefully extra. Nevertheless it 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 house for the very 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In 2025, I made the decision to promote my outdated home after renting it out for a yr. I’d bought a bigger house a couple of years again and had an attachment to the outdated place.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 adore it as a lot as I did felt like the best transfer. Plus, renting out single-family properties at that worth 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 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 provide, damaged down into seven steps to assist information your personal determination.
Frankly, to get the very best worth, most sellers ought to record on the open market—however solely if they’ve a reliable agent, a strong advertising and marketing plan, and a gorgeous record worth. Opening up your house for the world to see can backfire. The very last thing you need to do is worth too excessive and have your house sit for months.
Accepting a preemptive provide, like going the twin company route when shopping for, might profit extra skilled sellers. Nonetheless, even for those who’ve offered a number of properties earlier than, accepting a preemptive provide 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 Enhance Your Probabilities Of Getting A Preemptive Provide
Our first transfer was hiring a high agent—one rating within the high 10% of our native market based mostly on gross sales quantity. Why? We wished somebody with a deep community, a stellar monitor document, and the power to maneuver a property quick. That experience got here at a value: 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 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 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. Daily previous two weeks available on the market chips away at your last gross sales worth as consumers begin questioning what’s unsuitable with the place. By utilizing TAN, we might market the property discreetly with out beginning the official clock.
Apart from, the highest 10% of brokers deal with 80–90% of all house gross sales in our space. Which means you’re getting in entrance of the vast majority of severe consumers whereas avoiding many 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 monitor 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:
- Record means beneath market to ignite intense demand and spark a bidding warfare.
- Record just below or at honest market worth as an in between
- Record 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% beneath honest market worth typically works finest. It’s a magnet for hopeful consumers, 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 house at $1.99 million, roughly 15% beneath the $2.3 million I assumed it might doubtlessly fetch in a public sale. The objective? Draw a crowd and let the bids climb. However there’s a danger: 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 modern web site for the property—full with photographs, a digital tour, and a narrative about its allure—and listed it on TAN at $2.095 million, 8.8% beneath 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.
Observe: 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 actual property love letter can tip the scales. Should you’re promoting, write a heartfelt notice about what you love about the home and why it’ll go well with the client. Should 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 sport.
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 identify, 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 robust native financial traits.
The consumers—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 Provide And A Counter
Their preliminary provide was $2.2 million, 4.8% above asking, however beneath my $2.3 million objective. 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 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 scorching tub whether or not it was price pushing for one final counter or danger having the consumers balk and stroll away.
The Remaining 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 maintain the potential consumers engaged, even when I made one last counteroffer. Extra importantly, I knew I’d remorse not a minimum of asking.
So I responded by way of my agent with a “finest and last” provide of $2.315 million, $15,000 above my authentic stretch worth. Simply half-hour later, my agent known as: that they had accepted. I ordered a margarita to rejoice.
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 means, 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 in regards to the numbers, it’s about making a connection. That non-public contact may be the tipping level when {dollars} alone gained’t transfer the needle. Personally, I really feel a lot better realizing I’m promoting the house to somebody who will actually profit from it and respect it. If I had sensed the client was an investor simply trying 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 suggestion deadline, set up your must-have worth. 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 properties, submitting presents, 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, 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 does not combat aggressively for you, you will need to accomplish that your self or discover a new agent. After all, you may be unsuitable, and finally pay the value by way of wasted time and promoting for a lower cost. Mine was a bit of stunned in regards to 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 may be in regards to the property, together with what was mounted and upgraded. So I knew the client would respect the small print I supplied.
Your minimal is your anchor. Set it thoughtfully, and don’t budge until the provide aligns along with your targets.
5. Analyzing Current 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 yr—properties offered, listed, and in escrow. The brisker the information, the higher. The trickiest half? Estimating what properties 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, providing you with an edge.
I discovered a similar-sized house close by fetched $2.45 million—effectively 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 endlessly or cannot make money working from home. With that comp drawing 12 presents, I figured mine might pull a minimum of three and climb to $2.3 million.
Then got here a curveball: A “scorching house” comp—a full intestine rework—listed at $2 million on Redfin bought zero presents 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 worth after two weeks available on the market as a “scorching house” on Redfin, perhaps 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 assume their house is. Similar to the power to purchase the dip requires eradicating emotion, so does promoting a home for the utmost worth.
6. Evaluating the Provide Past Value
Value grabs headlines, however a suggestion’s “cleanliness” could make or break its enchantment. Past the greenback quantity, you’ve bought 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 house 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 house insurance coverage these days.
Some consumers toss in further wrinkles, like needing to promote their present house first—a domino impact that may delay or derail every part. Every contingency is a possible snag, a thread that might 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 positive 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: Money consumers know their provide’s attract, so that they typically bid decrease, banking on sellers prioritizing certainty over high 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 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 means; whether or not it’s from the client’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 revenue. It additionally shrinks the window for catastrophe. Promoting a home is nerve-wracking—contingencies amplify the anxiousness.
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 Cross Up Our Provide
Our provide 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 doable worth? I will by no means know for positive. 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 in opposition to your tolerance for danger and delay. Something, from a forest fireplace to a burst pipe might occur throughout escrow.
7. Counting Your Affords (Two Or Extra Is Very best)
Ideally, you desire a preemptive provide so good which are keen to forgo a a number of provide state of affairs for those who record on the open market. Even higher is receiving a number of preemptive presents, 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. It’s a must to analyze the chance the preemptive provide, a chook within the hand, will likely be greater with higher phrases than all different unknown presents sooner or later. You’re the one who has to create competitors, stoking need and concern of lacking out (FOMO) to push the bidder greater. It’s a harder sport, requiring finesse, salesmanship, and perhaps 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—perhaps two or three presents. However we bought only one provide. Per 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 high purchasers, hoping to drum up a rival bid. Sadly, nothing in writing materialized. The silence was deafening, particularly with that “scorching house” comp worrying me—it listed at $2.04 million and bought zero presents regardless of its buzz.
Did I actually need to roll the cube, spend a minimum of two extra weeks advertising and marketing the home on the open market, hope that robust presents would are available, after which cross my fingers that we selected the best one? Or did I need to go together with the strong provide in hand and maintain 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 for those who can’t spark a second bid, you’re betting on that lone horse—be sure that it’s a winner. Should you 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 means above market. I’ve seen it occur a number of instances earlier than.
Publish-deal, I feel I might’ve squeezed $20,000–$40,000 extra, however I feared dropping the deal fully if I squeezed too laborious. The very fact of the matter is, you’ll at all times wonder if you could possibly 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 aspirational gross sales worth 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 cope with tenants or upkeep points.
Most Residence Sellers Ought to Record On The Open Market
In conclusion, until you and your agent know your native market in and out—and find out how to worth accurately—itemizing your house on the open market is the safer wager.
So long as you don’t botch the pricing or advertising and marketing, the open market is the easiest way to find out your house’s true market worth. Even for those who do mess issues up, the market will finally dictate what your house is price.
I’d solely think about accepting a preemptive provide if:
- You’re an skilled vendor who is aware of the market in and out
- You could have a robust community of actual property brokers and consumers
- You worth privateness and discretion over receiving doubtlessly high greenback
- The provide meets or exceeds your aspirational open market worth
- You could have doubts about getting a greater provide
- You need to save time and scale back uncertainty
As I grow old (and hopefully wealthier), I place a higher premium on simplicity. I informed myself that if I might get a minimum of a sure worth, 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 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 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 beneath what they initially proposed.
I’ll by no means know for positive. However what I do know is that this: locking in a win at your aspirational worth is rarely a loss.
Readers, have you ever ever accepted a preemptive provide when promoting your own home? If that’s the case, how did you establish whether or not the provide was adequate? 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 end result?
Should 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 greater. 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 as we speak’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 up to now.
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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 web site as we speak with ~1 million pageviews a month. Every thing is written based mostly off firsthand expertise and experience.
