When you decide to sell a house, you might encounter a preemptive offer—a bid that arrives before you list publicly on the open market or reach your set offer due date. This scenario often unfolds in a robust market or when your property is highly sought after.
It’s a tempting yet tricky situation: Do you accept the early offer or cast a wider net and hold out for something better? You see this dilemma play out in professional sports all the time. Some players bet on themselves and reject guaranteed life-changing money for hopefully more. But it doesn’t always work out as.
This article dives into that decision, drawing from my own experience, to help you weigh your options. Ultimately, your goal is to sell your home for the highest price possible at the time with the least amount of headaches.
My Journey: Opting for a Preemptive Offer
In 2025, I made the call to sell my old house after renting it out for a year. I’d purchased a larger home a few years back and had an attachment to the old place.
But life was pulling me in too many directions: managing multiple rental properties, raising kids, writing on Financial Samurai, and finishing my USA TODAY bestseller, Millionaire Milestones. Selling the home to someone who’d love it as much as I did felt like the right move. Plus, renting out single-family homes at that price point wasn’t delivering an attractive-enough net rental yield.
Ultimately, I accepted a preemptive offer before listing on the Multiple Listing Service (MLS). It wasn’t an easy choice. The decision gnawed at me because I was dying to see how the house would fare in the open market.
Accept A Preemptive Offer Or List On The Open Market
Here’s the detailed thought process that led me to accept the preemptive offer, broken down into seven steps to help guide your own decision.
Frankly, to get the highest price, most sellers should list on the open market—but only if they have a competent agent, a solid marketing plan, and an attractive list price. Opening up your home for the world to see can backfire. The last thing you want to do is price too high and have your home sit for months.
Accepting a preemptive offer, like going the dual agency route when buying, may benefit more experienced sellers. However, even if you’ve sold multiple properties before, accepting a preemptive offer is gambling that might result in leaving money on the table.
Let me review the steps I took to decide on which route to take.
1. Choose a Top-Tier Agent To Increase Your Chances Of Getting A Preemptive Offer
Our first move was hiring a top agent—one ranking in the top 10% of our local market based on sales volume. Why? We wanted someone with a deep network, a stellar track record, and the ability to move a property fast. That expertise came at a cost: We paid a commission 0.25% higher than a competing mid-tier agent.
A key perk of going with a top-tier agent was their access to the Top Agent Network (TAN), a private group connecting elite realtors.
Our strategy hinged on leveraging TAN. Before exposing the house to the open market, we’d broadcast it to this exclusive network of over 500 of the top agents. It was a way to dip our toes in, testing demand without committing fully.
Here’s why that mattered: Once you list on the MLS, the clock starts ticking. Every day past two weeks on the market chips away at your final sales price as buyers start wondering what’s wrong with the place. By using TAN, we could market the property discreetly without starting the official clock.
Besides, the top 10% of agents handle 80–90% of all home sales in our area. That means you’re getting in front of the majority of serious buyers while avoiding most of the looky-loos and tire kickers.
If you’re aiming for a preemptive bid, I recommend partnering with a top-tier agent who’s plugged into TAN or a similar network. It’s like having an inside track before the race even starts.
2. Easier To Experiment With Pricing Strategy Off Market
Pricing a home is an art form, and there are three broad approaches:
- List way below market to ignite intense demand and spark a bidding war.
- List slightly under or at fair market value, functioning like a “buy now” price.
- List above market, hoping to snag someone so enamored they overlook the premium.
With 22 years of buying and selling real estate under my belt, I believe pricing 5% to 10% below fair market value often works best. It’s a magnet for hopeful buyers, creating competition. If they fall in love—and many do—paying an extra 15% to 20% doesn’t feel like a stretch.
We toyed with listing our home at $1.99 million, roughly 15% below the $2.3 million I thought it could potentially fetch in a public sale. The goal? Draw a crowd and let the bids climb. But there’s a risk: Price too low, and some buyers balk at jumping far above asking.
So, we pivoted. We built a sleek website for the property—complete with photos, a virtual tour, and a story about its charm—and listed it on TAN at $2.095 million, 8.8% below that $2.3 million target. This softened the leap to $2.3 million compared to a $1.99 million start. However, it also filtered out buyers capped at $2 million, which reduces potential demand.
The result? A preemptive offer rolled in at $2.2 million—5.3% above our $2.095 million ask, and 10% above our initial though of listing the home for $1.99 million. It wasn’t the $2.3 million I’d dreamed of, but it proved the strategy had legs. The key was to get a legitimate offer and then negotiate upward in price.
Note: These numbers are illustrative, not my actual sale figures, to make the example concrete.
3. Negotiating To Push The Preemptive Offer Higher
Negotiation is where deals are won or lost, and a real estate love letter can tip the scales. If you’re selling, write a heartfelt note about what you adore about the house and why it’ll suit the buyer. If you’re buying, explain why it’s your dream home and you’re the perfect fit. These letters forge emotional connections—crucial in a numbers-driven game.
I’ve been writing online since 2009 and have three bestselling books to my name, so I know the power of words. As the seller, I crafted a seven-page love letter, pouring in everything: the home’s best features, my favorite memories, even my take on strong local economic trends. The buyers—a couple expecting their first child—responded with their own letter. As parents who’d upsized after our second kid, we instantly connected over that shared milestone.
Initial Offer And A Counter
Their initial offer was $2.15 million, 7.5% above asking, but below my $2.3 million goal. I countered at $2.36 million—9.7% higher—bundling it with a two-page letter thanking them, reinforcing our family bond, and justifying the price with market data.
They came back at $2.25 million a day later. Progress! It was so close to my reach target of $2.3 million, and I was tempted to accept. I had 24 hours to respond before deciding whether to go on the open market or not. During this time, I agonized in the hot tub whether it was worth pushing for one last counter or risk having the buyers balk and walk away.
The Final Counter
The next evening, while enjoying some tacos in Lake Tahoe after an epic day of skiing, I felt confident that the connection we’d built through our letters would keep the potential buyers engaged, even if I made one final counteroffer. More importantly, I knew I’d regret not at least asking.
So I responded through my agent with a “best and final” offer of $2.315 million, $15,000 above my original stretch price. Just 30 minutes later, my agent called: they had accepted. I ordered a margarita to celebrate.
Had they held firm at $2.25 million, I would’ve walked and gone to market. But $2.315 million nudged just past my $2.3 million goal, and that was enough to seal the deal.
Negotiation isn’t just about the numbers, it’s about creating a connection. That personal touch can be the tipping point when dollars alone won’t move the needle. Personally, I feel much better knowing I’m selling the home to someone who will truly benefit from it and appreciate it. If I had sensed the buyer was an investor just looking to flip it, their offer wouldn’t have carried the same weight.
4. Setting a Minimum Preemptive Offer Price
Before you skip the open market or forsake an offer deadline, establish your must-have price. If the preemptive offer doesn’t hit or exceed it, list publicly. It’s that simple. For me, that number was $2.3 million (sticking with the example). When the initial offer of $2.1 million came in, I was pleased to have a bid but not thrilled.
A skilled agent can steer negotiations, but ours was skeptical. She doubted we’d clear $2.2 million, let alone $2.3 million, estimating $1.95 million (only 6.6% above our 2020 purchase). She pegged 2020 as the market peak, but I vehemently disagreed and made me really question whether to hire her. I’d been deep in the 2020 trenches—touring homes, submitting offers, tracking comps. I had to figure out whether she was just managing expectations or really believed in her pricing thesis.
I knew values had continued to increase from 2020 until 2022, faded from 2022 until 2H 2023 after the Fed increased rates 11 times, then rebounded aggressively in Spring 2024. So, I took the reins, using my letters and pricing strategy to push us to $2.315 million.
If your agent doesn’t fight aggressively for you, you must do so yourself. Of course, you could also be wrong, and ultimately pay the price in terms of wasted time and selling for a lower price. Mine was a little surprised and dismissive about the initial 7-page letter I wrote, but I believed in my strategy. As a potential buyer, I want to know everything there is about the property, including what was fixed and upgraded.
Your minimum is your anchor. Set it thoughtfully, and don’t budge unless the offer aligns with your goals.
5. Analyzing Recent Comparable Sales
I didn’t pluck my aspirational selling price of $2.3 million out of thin air. It came from poring over comparable sales (comps) from the past year—homes sold, listed, and in escrow. The fresher the data, the better. The trickiest part? Estimating what homes still in escrow will close at, since agents guard those figures until the ink dries. An experienced agent with a strong reputation can pry out that intel, giving you an edge.
I learned a similar-sized home nearby fetched $2.45 million—well over asking. I loved my place more, but its location near the MUNI station in a trendier neighborhood close to everything added a premium to people who need or want to work forever or can’t work from home. With that comp drawing 12 offers, I figured mine could pull at least three and climb to $2.3 million.
Then came a curveball: A “hot home” comp—a full gut remodel—listed at $2 million on Redfin got zero offers the day after my $2.2 million bid arrived. Smaller, with inferior views, and less outdoor space, I’d expected it to sell for $2.1 million. Its flop rattled me. If it couldn’t fetch even one offer at its $2 million asking price after two weeks on the market as a “hot home” on Redfin, maybe it’d sell for $100,000 less. Doubt seeped in, and I trimmed my minimum threshold price from $2.35 million to $2.3 million.
Comps are your compass, but markets can shift fast. One of the greatest risks sellers have is being overly biased on how awesome they think their home is. Just like the ability to buy the dip requires removing emotion, so does selling a house for the maximum price.
6. Evaluating the Offer Beyond Price
Price grabs headlines, but an offer’s “cleanliness” can make or break its appeal. Beyond the dollar amount, you’ve got to scrutinize the closing timeline, contingencies, and any conditions tied to the purchase. These factors determine how likely the deal is to close—and how much stress you’ll endure along the way. Let’s break it down.
Most home sales close in 30 to 45 days, often saddled with contingencies: inspection (buyers can back out or demand repairs if issues arise), financing (the deal hinges on their loan approval), and even home insurance nowadays.
Some buyers toss in extra wrinkles, like needing to sell their current home first—a domino effect that can delay or derail everything. Each contingency is a potential snag, a thread that could unravel the sale.
The Near-Perfect Offer
The dream offer? All cash, no contingencies, and a lightning-fast close. Why? It’s as close to a sure thing as you get. No bank can deny a loan; no inspection can spook the buyer into renegotiating. Cash cuts the risk to near zero.
But there’s a catch: Cash buyers know their offer’s allure, so they often bid lower, banking on sellers prioritizing certainty over top dollar. You might face a dilemma—say, a $2.35 million financed offer with contingencies versus a $2.3 million cash offer that’s clean and quick. It’s a trade-off between maximizing profit and minimizing risk.
I’ve bought properties both ways—cash and loans—so I’m less dazzled by cash than some sellers. At closing, the money hits your account either way; whether it’s from the buyer’s pocket or a bank’s doesn’t change the outcome.
A financed offer with no financing contingency (meaning they waive the loan approval escape hatch) can rival cash’s reliability. Still, I get why sellers swoon for cash. There’s a psychological comfort in knowing no lender can meddle.
Then there’s the closing timeline. A short close—say, 10 or 15 days—slashes your carrying costs: property taxes, mortgage interest, or lost rental income. It also shrinks the window for disaster. Selling a house is nerve-wracking—contingencies amplify the anxiety.
During escrow, you may start imagining worst-case scenarios: a pipe bursts mid-escrow, or, the house burns down before closing, voiding the deal. The shorter the escrow, the less time you spend sweating those hypotheticals.
Hard To Pass Up Our Offer
Our offer was a beauty: all cash, no contingencies, and a 10-day close. After countering twice, I got to my aspirational sales target figure, so I accepted.
Was $2.315 the highest possible price? I’ll never know for sure. But its cleanliness tipped the scales. Speed and security outweighed the chance of squeezing out a bit more on the open market.
When evaluating your offer, don’t just chase the number. Weigh how “clean” it is against your tolerance for risk and delay. Anything, from a forest fire to a burst pipe could happen during escrow.
7. Counting Your Offers (Two Or More Is Ideal)
Ideally, you want a preemptive offer so good that are willing to forgo a multiple offer scenario if you list on the open market. Even better is receiving multiple preemptive offers, a rare scenario. It’s a seller’s dream, like an auction unfolding in your favor.
With just one preemptive offer, it’s much harder to decide. You have to analyze the probability the preemptive offer, a bird in the hand, will be higher with better terms than all other unknown offers in the future. You’re the one who has to create competition, stoking desire and fear of missing out (FOMO) to push the bidder higher. It’s a tougher game, requiring finesse, salesmanship, and maybe even a bit of bluffing.
We listed on TAN for a week, casting a wide net among top agents. I’d hoped for a flurry of interest—maybe two or three offers. But we got just one offer. A week’s a tight window; most buyers need more time to tour, crunch numbers, and commit. Still, that lone initial bid at $2.1 million gave us something to work with.
In Search For More Offers That Didn’t Come
With only 24 hours to respond, we didn’t sit idle. My agent sent a blast to TAN: “Offer incoming—any takers?” We hosted private showings for her top clients, hoping to drum up a rival bid. Unfortunately, nothing in writing materialized. The silence was deafening, especially with that “hot home” comp worrying me—it listed at $2.04 million and got zero offers despite its buzz.
Did I really want to roll the dice, spend at least two more weeks marketing the house on the open market, hope that strong offers would come in, and then cross my fingers that we chose the right one? Or did I want to go with the solid offer in hand and keep things simple? I chose the latter.
If you’re stuck with one offer, don’t despair. Use your agent’s network, signal urgency, and negotiate hard. But if you can’t spark a second bid, you’re betting on that lone horse—make sure it’s a winner. If you don’t like the preemptive offer, then test the open market instead.
Was It the Right Call To Accept A Preemptive?
Taking a preemptive offer leaves you wondering: What if I’d gone to market? Maybe a wild buyer with an inexperienced agent would’ve encouraged their client to pay way above market. I’ve seen it happen several times before.
Post-deal, I think I could’ve squeezed $20,000–$40,000 more, but I feared losing the deal entirely if I squeezed too hard. The fact of the matter is, you will always wonder whether you could have gotten more after you’ve agreed on a selling price. It’s just human nature.
My mission was simplifying life, and I did. I reached my stretch goal and reinvested the house sale proceeds into stocks, Treasury bonds, private AI companies, and private real estate.
Most Home Sellers Should List On The Open Market
In conclusion, unless you and your agent know your local market inside and out—and how to price correctly—listing your home on the open market is the safer bet. As long as you don’t botch the pricing or marketing, the open market is the best way to determine your home’s true market value. Even if you do mess things up, the market will ultimately dictate what your home is worth.
I’d only consider accepting a preemptive offer if:
- You’re an experienced seller who knows the market inside and out
- You have a strong network of real estate agents and buyers
- You value privacy and discretion
- The offer meets or exceeds your aspirational open market price
- You have doubts about getting a better offer
- You want to save time and reduce uncertainty
As I get older (and hopefully wealthier), I place a greater premium on simplicity. I told myself that if I could get at least a certain price, I’d sell—and I did. And remember, I’m a real estate fanatic who visits open houses every weekend for fun and market research.
Sure, making more money is always nice. But at this stage of life, a smooth transaction holds even more value. And who knows, had I passed on the preemptive offer, the buyers might have moved on and never submitted a bid once I went to market. I could have ended up with only one offer below what they initially proposed.
I’ll never know for sure. But what I do know is this: locking in a win at your aspirational price is never a loss.
Readers, have you ever accepted a preemptive offer when selling your house? If so, how did you determine whether the offer was good enough? On the flip side, have you ever made a preemptive offer to buy a house and felt you secured a better deal because of it? What other strategies should sellers and buyers consider to ensure they get the best possible outcome?
If you’re looking to invest in real estate passively, check out Fundrise—my preferred private real estate platform. Fundrise focuses on high-quality residential and industrial properties in the Sunbelt, where valuations are lower and yields are higher. After selling my house, I invested a portion of the proceeds in Fundrise.
Some commercial real estate valuations have dropped to levels near the 2008 financial crisis lows, despite today’s stronger economy and healthier household balance sheets. Seeing this as an opportunity, I’m dollar-cost averaging into the sector with my home-sale proceeds while prices remain attractive.
Fundrise is a long-time sponsor of Financial Samurai and I’ve invested $300,000+ with them so far.
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Deciding On Whether To Accept A Preemptive Offer is a Financial Samurai original post. All rights reserved. Financial Samurai began in 2009 and is the leading independently-owned personal finance site today with ~1 million pageviews a month. Everything is written based off firsthand experience and expertise.
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