While you determine to promote a home, you would possibly encounter a preemptive supply—a bid that arrives earlier than you record publicly on the open market or attain your set supply due date. This state of affairs 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 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. But it surely does 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. In the end, your purpose is to promote your house for the best worth potential on the time with the least quantity of complications.
My Journey: Choosing a Preemptive Supply
In 2025, I made the decision to promote my previous home after renting it out for a 12 months. I’d bought a bigger house a couple of 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 worth level wasn’t delivering an attractive-enough web rental yield.
In the end, I accepted a preemptive supply earlier than itemizing on the A number of Itemizing Service (MLS). It wasn’t a straightforward 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 Supply 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 resolution.
Frankly, to get the best worth, most sellers ought to record on the open market—however solely if they’ve a reliable agent, a stable advertising plan, and a horny 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 supply, like going the twin company route when shopping for, could profit extra skilled sellers. Nevertheless, even in the event you’ve bought a number of properties earlier than, accepting a preemptive supply is playing that may lead to leaving cash on the desk.
Let me assessment 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 Supply
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 needed somebody with a deep community, a stellar monitor document, and the flexibility to maneuver a property quick. That experience got here at a price: 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 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 approach to dip our toes in, testing demand with out committing totally.
Right here’s why that mattered: When you record on the MLS, the clock begins ticking. Each day previous two weeks in the marketplace chips away at your ultimate gross sales worth as patrons begin questioning what’s improper 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 house 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.
In case 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 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 slightly 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 underneath my belt, I imagine pricing 5% to 10% under truthful market worth usually works greatest. 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 may probably fetch in a public sale. The purpose? Draw a crowd and let the bids climb. However there’s a danger: Worth too low, and a few patrons balk at leaping far above asking, which is why we did not go for choice #1.
We constructed a smooth web site for the property—full with pictures, 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.
Be aware: These numbers are illustrative, not my precise sale figures, to make the instance concrete.
3. Negotiating To Push The Preemptive Supply Increased
Negotiation is the place offers are gained or misplaced, and a actual property love letter can tip the scales. In case you’re promoting, write a heartfelt be aware about what you love about the home and why it’ll go well with the client. In case 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 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 greatest options, my favourite reminiscences, even my tackle sturdy 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 linked over that shared milestone.
Preliminary Supply 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% increased—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 sizzling tub whether or not it was value pushing for one final counter or danger having the patrons balk and stroll away.
The Remaining 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 means of our letters would maintain the potential patrons engaged, even when I made one ultimate counteroffer. Extra importantly, I knew I’d remorse not not less than asking.
So I responded by means of my agent with a “greatest and ultimate” supply of $2.315 million, $15,000 above my unique stretch worth. Simply half-hour later, my agent referred to 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 may 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 will be the tipping level when {dollars} alone gained’t transfer the needle. Personally, I really feel significantly 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 supply wouldn’t have carried the identical weight.
4. Setting a Minimal Preemptive Supply Worth
Earlier than you skip the open market or forsake a proposal deadline, set up your must-have worth. If the preemptive supply 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 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 houses, 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 need to achieve this your self or discover a new agent. After all, you is also improper, and finally pay the value when it comes to wasted time and promoting for a cheaper price. Mine was a bit of stunned 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 need 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 admire the small print I offered.
Your minimal is your anchor. Set it thoughtfully, and don’t budge until the supply aligns together 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 12 months—houses bought, listed, and in escrow. The more energizing the info, 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 robust 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 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 need to work without end or cannot make money working from home. With that comp drawing 12 presents, I figured mine may pull not less than three and climb to $2.3 million.
Then got here a curveball: A “sizzling house” comp—a full intestine rework—listed at $2 million on Redfin acquired zero presents 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 worth after two weeks in the marketplace as a “sizzling 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 Supply Past Worth
Worth grabs headlines, however a proposal’s “cleanliness” could make or break its enchantment. Past the greenback quantity, you’ve acquired to scrutinize the closing timeline, contingencies, and any circumstances 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, 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 further 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 might unravel the sale.
The Close to-Excellent Supply
The dream supply? 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 patrons know their supply’s attract, so 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 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 result.
A financed supply 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, 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.
Arduous To Move Up Our Supply
Our supply was a magnificence: all money, no contingencies, and a 10-day shut. After countering twice, I acquired to my aspirational gross sales goal determine, so I accepted.
Was $2.315 the best potential worth? I will by no means know for positive. However its cleanliness tipped the scales. Velocity and safety outweighed the possibility 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 fireplace to a burst pipe may occur throughout escrow.
7. Counting Your Affords (Two Or Extra Is Ideally suited)
Ideally, you desire a preemptive supply so good which can be keen to forgo a a number of supply state of affairs in the event you 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 supply, it is a lot more durable to determine. It’s a must to analyze the likelihood the preemptive supply, a hen within the hand, can be increased 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 increased. It’s a harder recreation, requiring finesse, salesmanship, and possibly even a little bit of bluffing.
We listed on TAN for per week, casting a large web amongst high brokers. I’d hoped for a flurry of curiosity—possibly two or three presents. However we acquired 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 Affords That Did not Come
With solely 24 hours to reply, we didn’t sit idle. My agent despatched a blast to TAN: “Supply 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 “sizzling house” comp worrying me—it listed at $2.04 million and acquired zero presents regardless of its buzz.
Did I actually need to roll the cube, spend not less than two extra weeks advertising the home on the open market, hope that sturdy presents would are available in, after which cross my fingers that we selected the precise one? Or did I need to go together with the stable supply in hand and maintain issues easy? I selected the latter.
In case you’re caught with one supply, don’t despair. Use your agent’s community, sign urgency, and negotiate arduous. 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. In case you do not just like the preemptive supply, then check 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 instances earlier than.
Submit-deal, I feel I may’ve squeezed $20,000–$40,000 extra, however I feared shedding the deal solely if I squeezed too arduous. 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 worth. It is simply human nature.
My mission was simplifying life, and I did. I reached my aspirational gross sales worth purpose 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 earnings once more and never need to cope with 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 in and out—and methods to worth appropriately—itemizing your house on the open market is the safer guess.
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 finally dictate what your house is value.
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 may have a robust community of actual property brokers and patrons
- You worth privateness and discretion over receiving probably high greenback
- The supply meets or exceeds your aspirational open market worth
- You may have doubts about getting a greater supply
- You need to save time and scale back uncertainty
As I become old (and hopefully wealthier), I place a higher premium on simplicity. I informed myself that if I may get not less than 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 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 positive. 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 supply when promoting your home? In that case, how did you identify whether or not the supply was adequate? 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 very best final result?
In case you’re seeking 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 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 at this time’s stronger economic system and more healthy family stability 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 this point.
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Deciding On Whether or not To Settle for A Preemptive Supply is a Monetary Samurai unique put up. All rights reserved. Monetary Samurai started in 2009 and is the main independently-owned private finance web site at this time with ~1 million pageviews a month. All the things is written based mostly off firsthand expertise and experience.
