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Lowball offer on a FSBO: how to negotiate with a for sale by owner seller
Updated · by the LowBaller team
A lowball offer on a FSBO starts with the commission the seller is not paying: an offer 5 to 6 percent under asking can leave them the same net as a full-price agent sale. Go deeper only when you can show a reason, such as repairs, a fast cash close, or a seller who needs out. There is no agent to filter your number or explain the market. You are talking to the person whose house it is, who probably set the price and may be proud of it.
Below: the commission math in a table, how FSBO sellers set prices, which ones take low offers, what to verify without an agent's help, a worked example, and five word-for-word scripts. Commissions are negotiable and vary, so the percentages here are examples, not standard rates.
How much should you offer on a FSBO?
Start from value, not from the sign. Estimate what the house would sell for with an agent in its current condition, work out what the seller would net from that sale, and offer around that net, adjusted for condition and terms.
The anchor most FSBO sellers forget is their own savings. A seller who lists pays a listing commission and often offers buyer-agent compensation. A FSBO seller dealing with an unrepresented buyer pays neither. That gap is your first, and least offensive, discount.
| Asking price | Commission avoided (example 5.5%) | Offer that nets the same | As-is cash offer (example 12% under) |
|---|---|---|---|
| $250,000 | $13,750 | $236,250 | $220,000 |
| $350,000 | $19,250 | $330,750 | $308,000 |
| $500,000 | $27,500 | $472,500 | $440,000 |
| $750,000 | $41,250 | $708,750 | $660,000 |
How do FSBO sellers price their homes?
Most FSBO prices come from one of a few places, and each tells you how to respond. Ask directly: 'How did you land on your price?' The answer is the most useful thing you will hear.
The need-to-net seller is the best FSBO lowball target. If the house is worth $350,000 and they need $260,000 to pay off the mortgage and move, a fast cash offer at $290,000 solves their problem. The equity cap still applies: never offer below what clears their payoff and closing costs, because they cannot accept it.
| Where the price came from | What it usually means | How to respond |
|---|---|---|
| An online estimate | Could be high or low; it ignores condition | Bring recent sales of similar homes and walk through the differences |
| A neighbor's sale | Often a better house, a better month, or a remembered number | Compare size, updates and sale date politely |
| What they need to net | Driven by a payoff, a next house or a split | Ask the payoff; your job is to clear it, not argue value |
| What they paid plus improvements | An emotional cost basis, not a market price | Separate what they spent from what buyers pay for |
| An agent's opinion | Often a real valuation | Take it seriously and negotiate on terms |
Which FSBO sellers take a low offer?
A FSBO sign means the owner wants to save money. It does not mean they are motivated. Look for the signals that do: the house is vacant, the tax bill goes to another state, there is a tax lien or pre-foreclosure filing, the sign has been up for months, or the price has been cut.
You can check the public-record side for free. Run the address through LowBaller's free distress check to see whether it carries a tax lien, pre-foreclosure or vacancy signal. A FSBO with stacked signals behaves like an off-market motivated seller. A FSBO without them is a retail seller who wants a retail price.
Signals that turn a FSBO into a motivated seller
What to verify before you offer on a FSBO
With no listing agent, nobody has checked the paperwork. That job is yours.
| Item | Why it matters | How to check |
|---|---|---|
| The seller owns it | The person on the sign must be on the deed | County recorder or assessor |
| Mortgage and liens | Your price must clear the payoff | Title search and a payoff statement |
| Required disclosures | Most states require seller disclosures; forms vary | Your state's form, your attorney |
| Permits for additions | Unpermitted work can cost you at resale | City or county permit records |
| HOA rules and dues | Fees, special assessments, rental limits | HOA documents and estoppel letter |
| Who handles closing | Without agents, someone must run escrow | A title company or real estate attorney |
Suggest a neutral closer
Propose a well-known local title company or real estate attorney to hold the deposit and run closing. It reassures a FSBO seller that their money is safe, and it protects you from paperwork mistakes.
Worked example: a FSBO lowball that still works for the seller
Example: a FSBO asking $350,000, for sale 75 days. It needs a roof and dated bathrooms, about $28,000 by contractor bids. The owner already bought another house and is paying two mortgages, about $2,200 a month on this one. The payoff is $190,000.
Listed in its current condition, it might sell for $335,000. After 7 percent in total selling costs and three more months of payments, the owner would keep about $114,950 after the payoff. You offer $296,000 cash, as-is, closing in 21 days, and you pay the closing costs. Your offer is about 15 percent under asking. The owner keeps $106,000, and the double payments stop this month. They trade about $8,950 for certainty, no repairs and no showings. Some sellers take that. Some counter. Both are good outcomes.
Example: seller's cash after the mortgage payoff
5 FSBO negotiation scripts
Use these as starting points. Call manually between 8am and 9pm local time. If you are calling from a list instead of the number on the sign, use only Do-Not-Call filtered numbers, and never send a cold text.
- The opener: 'Hi, I am calling about the house on Elm. I am a buyer, not an agent, so there would be no commission on either side. Do you have a few minutes to tell me about it?'
- The price question: 'How did you arrive at your asking price?' Then stop talking.
- The net question: 'If you sold this month, what would you need to walk away with?' This moves the talk from price to net, where your offer competes best.
- The commission frame: 'If an agent sold it for $350,000, you would keep about $330,750 after a 5.5 percent commission. I can pay $330,750 with no commission, so you keep the same money without listing.'
- The as-is cash offer: 'I can pay $308,000 cash, as-is, and close in 21 days. You fix nothing and skip the showings. I know it is under your price, so here is how I got there.' Then walk through the repairs and the timeline.
What to do when the FSBO seller counters
Do not jump to the middle. Move once, restate what you are giving them (speed, certainty, no repairs, no commission), and put a written expiration on the offer. If the gap is about repairs, offer to share the contractor bids. If it is about their payoff, ask for the payoff statement and solve for it.
More on the back-and-forth in what to do when the seller counters, and more phone wording in lowball offer scripts.
Frequently asked questions
How much should I offer on a FSBO house?
Start with what the seller would net from an agent sale at fair value, then offer near that number, since a FSBO seller pays no listing commission. With a 5.5 percent commission, that is about 5.5 percent under a fair price. Go lower only when repairs, a fast cash close or the seller's situation justify it.
Do FSBO sellers accept lowball offers?
Some do, especially when the house has sat for months, is vacant, or belongs to an owner who already moved. Many FSBO sellers are proud of the price because they set it themselves, so explain your math with real sales and repair bids. A low number with no reasoning usually ends the conversation.
Is it better to use an agent when buying a FSBO?
It is not required, but an agent or real estate attorney helps if you are new. If you buy without an agent, the seller saves every commission, which is a fair reason for a lower price. Either way, use a title company or attorney to run escrow and check title, liens and disclosures.
What percentage of homes are sold by owner?
NAR's 2025 Profile of Home Buyers and Sellers, published in November 2025, found only 5 percent of homes sold as for sale by owner, an all-time low. It put the median FSBO price at $360,000 versus $425,000 for agent-assisted homes, though those are different homes, not one house sold two ways.
How do I negotiate with a for sale by owner seller?
Ask how they set their price and what they need to net, then build your offer from their net instead of the asking price. Show the commission they save, bring comparable sales and repair bids, and offer clean terms like cash and a short close. Counter once, then hold your number.
Put this to work in your market.
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Find motivated sellersKeep reading
- Lowball offer on a house: how low you can go, with the math
- Lowball offer scripts: phone, voicemail, email and reply text
- How to lowball without offending the seller (and when it is rude)
- Seller countered your lowball offer? The counter math, scripts and when to walk
- Lowball offer on a house that has been on the market a long time