A pre-emptive offer is an offer a buyer writes hoping that you will accept their offer before all the other buyers have an opportunity to see your home. Some context here. In Silicon Valley the real estate market moves much faster than say, Buffalo New York. It is not uncommon for there to be several buyers who write an offer to buy the same home if it’s priced correctly. In some cases, sellers and their agents will devise a strategy to review offers.
Some sellers’ agents will post a specific date and time when they will review offers. The thinking here is that it gives buyers a specific amount of time to see the home, review reports, and decide how much they want to offer and what terms they want to offer (As-Is, closing period, allocation of closing costs, etc.). The benefit to this offer review strategy is that it allows all buyers to compete against each other to buy your home. If they’re competing, it can drive the price up. That can be a reasonable strategy if your home is in high demand.
Here’s a scenario I’ve seen play out many times. Let’s suppose a buyer has been out making offers to buy a home and has been beaten out several times or just hates the whole competing thing. They now have a clear understanding of the market and are willing to go all in. Let’s further assume that they are closing on the sale of their home. Most people would rather not have to move into a temporary living arrangement until they find their new home. Sometimes a buyer in this situation is willing to pay a significant premium to make sure they get YOUR home.
For instance, your home hits the market on Wednesday morning and by the afternoon you get a call from your Realtor saying a buyer has already written an offer for your home. You might think, well if they wrote an offer that quickly I wonder what would happen if all the buyers compete next week. That’s a reasonable reaction and it’s your choice to wait it out and see. What happens next is that buyer goes to the next house they like and writes a premium offer for that home. If that seller accepts it, that buyer is no longer a buyer for your home. This whole game is called “pre-emptive offering”.
So the question becomes, should you accept a pre-emptive offer? Many times the deciding factors go beyond price and include rent-backs, personal property (washer, dryer, etc.). Each offer is different and you should discuss the details, pros, and cons of the offer with your Realtor. If she or he is truly an expert, they should be able to give you appropriate guidance. But at the end of the day, you are the seller and the choice is always yours.