If you determine 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 difficult state of affairs: Do you settle for the early supply 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 does 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 house for the very best value potential 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In 2025, I made the decision to promote my outdated home after renting it out for a 12 months. I’d bought a bigger dwelling a couple of years again and had an attachment to the outdated place.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 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 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 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 stable advertising and marketing plan, and a pretty 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 dual agency route when shopping for, might profit extra skilled sellers. Nevertheless, even in case you’ve bought a number of properties earlier than, accepting a preemptive supply is playing that may end in leaving cash on the desk.
Let me assessment the steps I took to determine 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% greater 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 method 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 closing 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.
Moreover, the highest 10% of brokers deal with 80–90% of all dwelling gross sales in our space. Which means you’re getting in entrance of nearly all of severe patrons whereas avoiding many of the looky-loos and tire kickers.
For those who’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 kind, and there are three broad approaches:
- Listing means under market to ignite intense demand and spark a bidding struggle.
- Listing slightly below or at honest market worth, functioning like a “purchase now” value.
- Listing 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 honest 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 dwelling at $1.99 million, roughly 15% under the $2.3 million I believed it may 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.
So, we pivoted. We constructed a smooth web site for the property—full with images, a digital tour, and a narrative about its attraction—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 end result? 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, nevertheless it proved the technique had legs. The important thing was to get a reliable supply after which negotiate upward in value.
Be aware: 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 real estate love letter can tip the scales. For those who’re promoting, write a heartfelt be aware about what you like about the home and why it’ll swimsuit the customer. For those who’re shopping for, clarify why it’s your dream dwelling and also you’re the right 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 part: the house’s greatest options, my favourite recollections, even my tackle robust local economic trends. The patrons—a pair anticipating their first little one—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 supply was $2.15 million, 7.5% above asking, however under my $2.3 million purpose. I countered at $2.36 million—9.7% greater—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 value pushing for one final counter or danger having the patrons balk and stroll away.
The Ultimate Counter
The subsequent 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 via our letters would maintain the potential patrons engaged, even when I made one closing counteroffer. Extra importantly, I knew I’d remorse not at the least asking.
So I responded via my agent with a “greatest and closing” supply of $2.315 million, $15,000 above my unique stretch value. Simply half-hour later, my agent referred to as: they’d accepted. I ordered a margarita to have a good time.
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 non-public contact could 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 really profit from it and admire it. If I had sensed the customer 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 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 properties, submitting affords, 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 does not struggle aggressively for you, you could accomplish that your self. After all, you is also mistaken, and finally pay the worth by way of wasted time and promoting for a lower cost. Mine was a bit of 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 part there may be in regards to the property, together with what was fastened 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—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 popularity can pry out that intel, supplying you with an edge.
I discovered a similar-sized dwelling close by fetched $2.45 million—properly 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 wish to work perpetually or cannot work at home. With that comp drawing 12 affords, I figured mine may pull at the least three and climb to $2.3 million.
Then got here a curveball: A “scorching dwelling” comp—a full intestine rework—listed at $2 million on Redfin obtained zero affords the day after my $2.2 million bid arrived. Smaller, with inferior views, and fewer out of doors 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 available on the market as a “scorching dwelling” 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 assume 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 suggestion’s “cleanliness” could make or break its enchantment. Past the greenback quantity, you’ve obtained to scrutinize the closing timeline, contingencies, and any situations tied to the acquisition. These elements decide how probably the deal is to shut—and the way a lot stress you’ll endure alongside the best way. Let’s break it down.
Most dwelling 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 dwelling insurance coverage these days.
Some patrons toss in further wrinkles, like needing to promote their present dwelling first—a domino impact that may delay or derail every part. Every contingency is a possible snag, a thread that would 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 customer into renegotiating. Money cuts the danger to close zero.
However there’s a catch: Cash buyers 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 means; whether or not it’s from the customer’s pocket or a financial institution’s doesn’t change the 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 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 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 Move Up Our Provide
Our supply 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 very best potential value? I will by no means know for certain. However its cleanliness tipped the scales. Velocity and safety outweighed the possibility of compacting out a bit extra on the open market.
When evaluating your supply, 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 may occur throughout escrow.
7. Counting Your Provides (Two Or Extra Is Very best)
Ideally, you desire a preemptive supply so good which are prepared to forgo a a number of supply situation in case you 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 supply, it is a lot more durable to determine. It’s important to analyze the chance the preemptive supply, a fowl within the hand, shall be greater with higher phrases than all different unknown affords sooner or later. You’re the one who has to create competitors, stoking want and worry of lacking out (FOMO) to push the bidder higher. It’s a harder sport, 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 affords. However we obtained 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 personal 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 dwelling” 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 at the least two extra weeks advertising and marketing the home on the open market, hope that robust affords would are available, after which cross my fingers that we selected the correct one? Or did I wish to go along with the stable supply in hand and maintain issues easy? I selected the latter.
For those who’re caught with one supply, don’t despair. Use your agent’s community, sign urgency, and negotiate onerous. However in case you can’t spark a second bid, you’re betting on that lone horse—be certain it’s a winner. For those who do not just like the preemptive supply, then take a look at the open market as a substitute.
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 means above market. I’ve seen it occur a number of instances earlier than.
Publish-deal, I feel I may’ve squeezed $20,000–$40,000 extra, however I feared shedding the deal solely if I squeezed too onerous. The actual fact of the matter is, you’ll all the time 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 stretch purpose and reinvested the house sale proceeds into shares, Treasury bonds, private AI companies, and personal actual property.
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 value accurately—itemizing your house 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 the easiest way to find out your house’s true market worth. Even in case you do mess issues up, the market will finally dictate what your house is value.
I’d solely take into account accepting a preemptive supply if:
- You’re an skilled vendor who is aware of the market in and out
- You’ve got a powerful community of actual property brokers and patrons
- You worth privateness and discretion
- The supply meets or exceeds your aspirational open market value
- You’ve got doubts about getting a greater supply
- You wish to save time and cut back uncertainty
As I grow old (and hopefully wealthier), I place a higher premium on simplicity. I instructed myself that if I may get at the least 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 may 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 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 take into account to make sure they get the absolute best end result?
For those who’re seeking to spend money on actual property passively, try Fundrise—my most popular personal 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 in the present day’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 unique 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.
