Quick Answer
A pre-emptive offer is a serious, early bid submitted before the first public open or offer date to avoid competition. In San Francisco, they work when you’re fully underwritten with a local lender, have read disclosures, and can present clean terms (tight timelines, credible funds, limited contingencies). If the home matches 9/10 boxes and seller priorities (price + timing + rent-back), a pre-emptive can land you the home without a bidding war.
Key Facts (2025 at a glance)
• When they appear: Often within 24–72 hours of list or after a strong early tour.
• Close of escrow: Commonly 20–30 days (cash can be 10–15).
• Earnest money (EMD): Typically ~3% of price in CA.
• Contingency norms: Inspection 0–5 days (often waived if pre-inspected), appraisal 0–14 days or waived with gap coverage, loan 10–17 days (or fully waived if truly cash-equivalent).
• Rent-back: Frequently 0–60 days (often free up to 30 days in competitive cases).
• What wins: Local underwrite + proof of funds + short fuse + terms aligned to seller needs.
Buyer Q&A
What exactly is a pre-emptive offer?
A pre-emptive is an unsolicited, early offer meant to short-circuit a broader competition. It’s strong enough (price + terms) that the seller is motivated to accept now rather than wait for an offer date.
When should I use one?
Use it when (1) the home is a near-perfect fit, (2) disclosures are complete and reviewed, (3) your lender has fully underwritten you, and (4) the listing agent signals that an early offer may be considered (always ask first). If you’re uncertain about inspections or value, a normal offer timeline may be safer.
What goes into a winning pre-emptive?
• Price: At or above what you’d expect to pay in a bidding war.
• Proof package: Local pre-approval (underwritten), proof of funds, signed disclosures, and signed advisory forms.
• Timelines: Short close (20–25 days; cash 10–15), tight contingencies (or strategic waivers).
• Seller priorities: Flexible possession (rent-back), limited repair asks, clean escrow.
• Fuse: Expiration in 2–6 hours so the seller can’t shop it endlessly.
Are contingencies always waived?
Not always. You can keep surgical protections: e.g., a 3-day inspection (if no pre-inspection), appraisal-gap coverage instead of full waiver, loan contingency if your underwrite isn’t rock-solid. The stronger your documentation, the tighter your clocks can be.
Biggest risks for buyers—and how to mitigate?
Overpaying: Benchmark true comps and model a no-regrets price.
• Hidden defects: Read all disclosures; if none exist, do a pre-inspection or keep a 3-day window.
• Appraisal shortfall: Use appraisal-gap coverage or build a buffer.
• Cold feet: Only move pre-emptively on 9/10-match homes.
Seller Q&A
Why accept early instead of waiting for the offer date?
Because the buyer is giving you certainty (price + terms + timing) today. If it matches or beats what a bidding war would likely yield, taking it now avoids risk of a soft offer day.
How do I handle fairness and process?
Have your agent:
• Disclose your written instructions on whether early offers will be considered.
• If considering one, decide whether to broadcast to interested parties or accept quietly (your agent will advise based on risk, ethics, and strategy).
• Confirm buyer strength: call lender, verify funds, and confirm they’ve reviewed disclosures.
Red flags for sellers?
Vague financing, long contingencies, or a price that’s just “okay.” Strong pre-emptives pair excellent terms with clear capacity to close.
Step-by-Step Playbook (Buyer)
1) Before touring
• Get fully underwritten by a respected local lender.
• Assemble proof of funds and ID.
• Have your agent request disclosures and pre-inspection reports.
2) After the first tour (same day)
• Confirm seller priorities (price, rent-back, close date).
• Price to a no-regrets number (include potential bidding-war premium).
• Prepare a 2–6 hour offer expiration.
3) Offer terms (typical winning set)
• Price: Competitive, war-ready number.
• Close: 20–25 days (cash 10–15).
• Inspection: 0–3 days (or waived with reports).
• Appraisal: Waive or include gap coverage to $X.
• Loan: 10–14 days (or waived if cash-equivalent).
• EMD: ~3% within 1–3 business days.
• Rent-back: Up to 30–60 days if needed.
Step-by-Step Playbook (Seller)
1) Before list
• Decide (in writing) if you’ll consider early offers.
• Complete disclosures and inspections to enable clean terms.
• Align internal priorities (price, timing, rent-back).
2) When a pre-emptive arrives
• Verify buyer’s local underwrite and funds.
• Compare to likely offer-day outcomes (price + terms).
• Choose: accept, counter once, or politely hold to the offer date.
Timing Examples (realistic)
Cash buyer (10–15 day close)
Day 0: Tour + disclosures reviewed
Day 1: Offer by 10am, 2-hour fuse → seller accepts
Day 2: EMD in
Day 3–5: Final walkthroughs/vendor checks
Day 10–15: Close
Financed buyer (20–25 day close)
Day 0: Tour + disclosures reviewed
Day 1: Offer by 1pm, 4-hour fuse → accepted
Day 2: EMD in; appraisal ordered same day
Day 10–14: Appraisal/loan contingencies satisfied
Day 20–25: Close; rent-back begins if agreed
Email/Message Template (Buyer to Listing Agent)
Subject: Pre-Emptive Offer — [Property Address] — Close in [X] Days
Hi [Agent Name],
My clients toured today and are submitting a pre-emptive with: price $[X], close in [20–25] days (or cash in [10–15]), EMD ~3%, [inspection 0–3 days / waived], [appraisal waived or gap to $___], local underwrite attached, proof of funds attached, and flexible rent-back up to [30–60] days as needed. Offer expires at [Time Today].
Best,
Nicholas
Offer Checklist (attach to email)
• Signed RPA + agency/advisory forms
• Local underwritten pre-approval letter
• Proof of funds (down + reserves)
• Signed disclosures/inspection acknowledgments
• Terms one-pager (close date, contingencies, rent-back)
• Offer expiration (2–6 hours)
Risks & Protections (read before you act)
• Price discipline: model comp-based ceiling and stick to it.
• Disclosure readiness: don’t waive blindly—use 0–3 day inspection if needed.
• Appraisal planning: include gap coverage if you waive.
• Communication: always confirm in writing that the listing agent will consider early offers.
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Cross-links
Area Guides: Pacific Heights, Noe Valley, Russian Hill
• Related post: Buying in Pacific Heights in 2025 https://nicholasguzmanestates.com/buying-in-pacific-heights-2025-prices-timing-how-to-win/