Whenever you determine to promote a home, you would possibly encounter a preemptive provide—a bid that arrives earlier than you checklist publicly on the open market or attain your set provide due date. This situation usually unfolds in a strong 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 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 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. Finally, your purpose is to promote your private home for the best worth 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In 2025, I made the decision to promote my outdated home after renting it out for a yr. I’d bought a bigger house a couple of years again and had an attachment to the outdated place.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 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 properties at that worth 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 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 Checklist 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 personal choice.
Frankly, to get the best worth, most sellers ought to checklist on the open market—however solely if they’ve a reliable agent, a stable advertising and marketing plan, and a beautiful checklist worth. Opening up your private home for the world to see can backfire. The very last thing you wish to do is worth too excessive and have your private home sit for months.
Accepting a preemptive provide, like going the twin company 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 that may lead to leaving cash on the desk.
Let me evaluate the steps I took to determine on which path to take.
1. Select a Prime-Tier Agent To Enhance Your Possibilities 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 observe 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 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 technique to dip our toes in, testing demand with out committing totally.
Right here’s why that mattered: When you checklist on the MLS, the clock begins ticking. Day by day previous two weeks available on the market chips away at your ultimate gross sales worth as consumers 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 house gross sales in our space. Meaning you’re getting in entrance of nearly all of severe consumers whereas avoiding many of the looky-loos and tire kickers.
When you’re aiming for a preemptive bid, I like to recommend partnering with a top-tier agent who’s plugged into TAN or an analogous 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 type, and there are three broad approaches:
- Checklist manner beneath market to ignite intense demand and spark a bidding struggle.
- Checklist just below or at truthful market worth, functioning like a “purchase now” worth.
- Checklist 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% beneath truthful market worth usually 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 15% 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 purpose? 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.
So, we pivoted. We constructed a glossy web site for the property—full with pictures, a digital tour, and a narrative about its appeal—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. Nevertheless, it additionally filtered out consumers capped at $2 million, which reduces potential demand.
The outcome? A preemptive provide 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 provide after which negotiate upward in worth.
Notice: 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. When you’re promoting, write a heartfelt word about what you like about the home and why it’ll go well with the client. When 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.
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 every thing: the house’s finest options, my favourite reminiscences, even my tackle sturdy native financial tendencies. 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 linked over that shared milestone.
Preliminary Provide And A Counter
Their preliminary provide was $2.15 million, 7.5% above asking, however beneath 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 knowledge.
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 consumers balk and stroll away.
The Last 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 our letters would preserve the potential consumers engaged, even when I made one ultimate counteroffer. Extra importantly, I knew I’d remorse not a minimum of asking.
So I responded by my agent with a “finest and ultimate” provide of $2.315 million, $15,000 above my unique 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’d’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 private 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 respect 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 worth. If the preemptive provide doesn’t hit or exceed it, checklist 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 vehemently disagreed and made me actually query whether or not to rent her. I’d been deep within the 2020 trenches—touring properties, submitting affords, 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, 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 have to accomplish that your self. In fact, you may be fallacious, and finally pay the worth by way of wasted time and promoting for a cheaper price. Mine was a 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 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 provide aligns along with your objectives.
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 bought, listed, and in escrow. The more energizing the info, 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 powerful fame can pry out that intel, providing you with an edge.
I realized a similar-sized house 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 near every thing added a premium to individuals who want or wish to work without end or cannot work at home. With that comp drawing 12 affords, 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 transform—listed at $2 million on Redfin obtained zero affords 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 worth after two weeks available on the market as a “scorching house” 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 Value
Value grabs headlines, however a proposal’s “cleanliness” could make or break its attraction. Past the greenback quantity, you’ve obtained to scrutinize the closing timeline, contingencies, and any circumstances tied to the acquisition. These elements 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 (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 additional wrinkles, like needing to promote their present house 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 danger to close zero.
However there’s a catch: Money consumers know their provide’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 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 manner; 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 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.
Arduous To Move Up Our Provide
Our provide 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 attainable worth? I am going to by no means know for certain. However its cleanliness tipped the scales. Velocity and safety outweighed the prospect 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 towards your tolerance for threat and delay. Something, from a forest hearth to a burst pipe might occur throughout escrow.
7. Counting Your Presents (Two Or Extra Is Perfect)
Ideally, you need a preemptive provide so good which can be prepared to forgo a a number of provide situation if you happen to checklist on the open market. Even higher is receiving a number of preemptive affords, 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 tougher to determine. It’s a must to analyze the chance the preemptive provide, a chook within the hand, can be increased with higher phrases than all different unknown affords sooner or later. You’re the one who has to create competitors, stoking need and concern of lacking out (FOMO) to push the bidder increased. It’s a more durable sport, requiring finesse, salesmanship, and possibly 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—possibly two or three affords. However we obtained only one provide. Every 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 Presents 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 obtained zero affords regardless of its buzz.
Did I actually wish to roll the cube, spend a minimum of two extra weeks advertising and marketing the home on the open market, hope that sturdy affords would are available in, after which cross my fingers that we selected the best one? Or did I wish to go along with the stable provide in hand and preserve issues easy? I selected the latter.
When you’re caught with one provide, don’t despair. Use your agent’s community, sign urgency, and negotiate arduous. However if you happen to can’t spark a second bid, you’re betting on that lone horse—ensure that it’s a winner. When 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? Perhaps a wild purchaser with an inexperienced agent would’ve inspired their shopper to pay manner 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 solely if I squeezed too arduous. The very fact of the matter is, you’ll all the time ponder whether 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 purpose and reinvested the home sale proceeds into shares, Treasury bonds, non-public AI corporations, and personal actual property.
Most Dwelling Sellers Ought to Checklist On The Open Market
In conclusion, except you and your agent know your native market inside and outside—and how one can worth 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 simplest ways to find out your private home’s true market worth. Even if you happen to do mess issues up, the market will finally dictate what your private home 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 gotten a powerful community of actual property brokers and consumers
- You worth privateness and discretion
- The provide meets or exceeds your aspirational open market worth
- You’ve gotten doubts about getting a greater provide
- You wish to save time and scale back uncertainty
As I become old (and hopefully wealthier), I place a larger premium on simplicity. I advised 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.
Positive, making extra money 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 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 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 provide when promoting your own home? In that case, how did you identify 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 absolute best final result?
When you’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 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 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 engaging.
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 unique 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. All the pieces is written based mostly off firsthand expertise and experience.
