Once you resolve to promote a home, you may encounter a preemptive supply—a bid that arrives earlier than you checklist publicly on the open market or attain your set supply due date. This situation usually unfolds in a sturdy 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 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 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 can assist you weigh your choices. Finally, your purpose is to promote your house for the very best value 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In 2025, I made the decision to promote my outdated home after renting it out for a 12 months. I’d bought a bigger house just a few years again and had an attachment to the outdated place.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 find it irresistible as a lot as I did felt like the correct transfer. Plus, renting out single-family properties at that value level wasn’t delivering an attractive-enough internet rental yield.
Finally, I accepted a preemptive supply earlier than itemizing on the A number of Itemizing Service (MLS). It wasn’t a straightforward 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 supply, damaged down into seven steps to assist information your personal choice.
Frankly, to get the very best value, most sellers ought to checklist on the open market—however solely if they’ve a reliable agent, a strong advertising plan, and a horny checklist value. Opening up your house for the world to see can backfire. The very last thing you wish to do is value too excessive and have your house sit for months.
Accepting a preemptive supply, like going the twin company route when shopping for, might profit extra skilled sellers. Nonetheless, even in the event you’ve offered a number of properties earlier than, accepting a preemptive supply is playing that may lead to leaving cash on the desk.
Let me evaluate 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 prime agent—one rating within the prime 10% of our native market primarily based on gross sales quantity. Why? We needed somebody with a deep community, a stellar monitor report, and the flexibility to maneuver a property quick. That experience got here at a value: We paid a fee 0.25% larger 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 absolutely.
Right here’s why that mattered: When you checklist on the MLS, the clock begins ticking. On daily basis previous two weeks in the marketplace chips away at your closing gross sales value as patrons begin questioning what’s incorrect 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 house gross sales in our space. Meaning you’re getting in entrance of nearly all of critical patrons 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 analogous 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 battle.
- Listing just below or at honest 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 imagine pricing 5% to 10% under honest market worth usually works finest. It’s a magnet for hopeful patrons, creating competitors. 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 house at $1.99 million, roughly 15% under 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 danger: Value too low, and a few patrons 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 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 patrons 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 Increased
Negotiation is the place offers are gained or misplaced, and a actual property love letter can tip the scales. If you happen to’re promoting, write a heartfelt word about what you love about the home and why it’ll swimsuit the client. If you happen to’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.
Your purpose 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 the whole lot: the house’s finest options, my favourite reminiscences, even my tackle robust native financial traits.
The patrons—a pair anticipating their first baby—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 $2.2 million, 4.8% above asking, however under my $2.3 million purpose. I countered at $2.36 million—7.2% larger—bundling it with a two-page letter thanking them, reinforcing our household bond, and justifying the value 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 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 snowboarding, I felt assured that the connection we’d constructed by means of our letters would hold the potential patrons engaged, even when I made one closing counteroffer. Extra importantly, I knew I’d remorse not not less than asking.
So I responded by means of my agent with a “finest and closing” supply of $2.315 million, $15,000 above my unique stretch value. Simply half-hour later, my agent known 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. In a method, I felt like $15,000 was like free bonus cash I might use to assist pay for closing prices or put money into the markets.
Negotiation isn’t simply in regards to the numbers, it’s about making a connection. That private contact will be the tipping level when {dollars} alone gained’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 recognize it. If I had sensed the client was an investor simply seeking to flip it, their supply 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 value. If the preemptive supply doesn’t hit or exceed it, checklist 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 strongly disagreed. This disagreement made me query whether or not to rent her. I’d been deep within the 2020 trenches—touring properties, submitting provides, 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 occasions, 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 should achieve this your self or discover a new agent. In fact, you may be incorrect, and in the end pay the value when it comes to wasted time and promoting for a cheaper price. Mine was a bit shocked in regards to the preliminary 7-page letter I wrote, as she’s by no means had a shopper write one like this earlier than. However I believed in my technique. As a possible purchaser, I wish to know the whole lot there’s in regards to the property, together with what was fastened and upgraded. So I knew the client would recognize the main points I offered.
Your minimal is your anchor. Set it thoughtfully, and don’t budge except the supply aligns together 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—properties offered, 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 popularity can pry out that intel, providing you with an edge.
I realized a similar-sized house close by fetched $2.45 million—nicely over asking. I cherished my place extra, however its location close to the MUNI station in a trendier neighborhood near the whole lot added a premium to individuals who want or wish to work perpetually or cannot make money working from 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 “scorching house” comp—a full intestine rework—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 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 value after two weeks in the marketplace as a “scorching 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 best dangers sellers have is being overly biased on how superior they assume their house is. Similar to the flexibility to purchase 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 suggestion’s “cleanliness” could make or break its attraction. Past the greenback quantity, you’ve bought to scrutinize the closing timeline, contingencies, and any situations tied to the acquisition. These components 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, 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 additional wrinkles, like needing to promote their present house first—a domino impact that may delay or derail the whole lot. Every contingency is a possible snag, a thread that would unravel the sale.
The Close to-Excellent 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: Money patrons know their supply’s attract, so that they usually bid decrease, banking on sellers prioritizing certainty over prime greenback. You may 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 method; 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 (which 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 earnings. It additionally shrinks the window for catastrophe. Promoting a home is nerve-wracking—contingencies amplify the nervousness.
Throughout escrow, you could 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.
Exhausting To Cross 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 doable value? 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 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 might occur throughout escrow.
7. Counting Your Provides (Two Or Extra Is Superb)
Ideally, you desire a preemptive supply so good which can be prepared to forgo a a number of supply situation in the event you checklist on the open market. Even higher is receiving a number of preemptive provides, a uncommon situation. It’s a vendor’s dream, like an public sale unfolding in your favor.
With only one preemptive supply, it is a lot more durable to resolve. You need to analyze the likelihood the preemptive supply, a hen within the hand, might be larger with higher phrases than all different unknown provides sooner or later. You’re the one who has to create competitors, stoking want and worry of lacking out (FOMO) to push the bidder larger. 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 internet amongst prime brokers. I’d hoped for a flurry of curiosity—possibly two or three provides. However we bought only one supply. Every 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 prime shoppers, 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 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 robust provides would are available, after which cross my fingers that we selected the correct one? Or did I wish to go together with the strong supply in hand and hold issues easy? I selected the latter.
If you happen to’re caught with one supply, don’t despair. Use your agent’s community, sign urgency, and negotiate laborious. However in the event you can’t spark a second bid, you’re betting on that lone horse—make sure that it’s a winner. If you happen to 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 method above market. I’ve seen it occur a number of occasions earlier than.
Publish-deal, I believe I might’ve squeezed $20,000–$40,000 extra, however I feared dropping the deal solely if I squeezed too laborious. The actual fact of the matter is, you’ll at all times wonder if you might 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 aspirational gross sales value purpose and reinvested the home sale proceeds into shares, Treasury bonds, non-public AI corporations, and personal actual property. It feels good to earn 100% passive earnings once more and never must cope with tenants or upkeep points.
Most Dwelling Sellers Ought to Listing On The Open Market
In conclusion, except you and your agent know your native market in and out—and the best way to value accurately—itemizing your house on the open market is the safer wager.
So long as you don’t botch the pricing or advertising, the open market is the easiest way to find out your house’s true market worth. Even in the event you do mess issues up, the market will in the end dictate what your house 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’ve gotten a powerful community of actual property brokers and patrons
- You worth privateness and discretion over receiving doubtlessly prime greenback
- The supply meets or exceeds your aspirational open market value
- You’ve gotten doubts about getting a greater supply
- You wish to save time and scale back uncertainty
As I become old (and hopefully wealthier), I place a larger premium on simplicity. I informed myself that if I might get not less than a sure value, 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.
Certain, making extra money is at all times 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 patrons 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 value 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 facet, 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 consequence?
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Some business actual property valuations have dropped to ranges close to the 2008 monetary disaster lows, regardless of right this moment’s stronger financial system and more healthy family stability sheets. Seeing this as a chance, I’m dollar-cost averaging into the sector with my home-sale proceeds whereas costs stay enticing.
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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 website right this moment with ~1 million pageviews a month. All the things is written primarily based off firsthand expertise and experience.
