Step 4 — Negotiation
FSBO sellers are often more flexible than sellers working with agents — because they're keeping the commission anyway. Here's how to make a competitive offer while protecting yourself.
Get pre-approved first
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Before making any offer, run comparable sales (comps) for the past 90 days within 0.5 miles. Use Zillow, Redfin, or county assessor records. Look at:
Offer 3–7% below asking if DOM > 30 days
Offer at or within 2–3% of asking
Offer at or above asking; escalation clause
Your offered price for the property.
1–3% of purchase price. Shows good faith. Held in escrow.
Loan type (FHA, conventional, VA), down payment %, and that offer is contingent on obtaining financing.
Number of days for inspection (7–14 is standard). Right to negotiate or walk away.
Protection if the home appraises below purchase price.
Typically 30–45 days out. FSBO sellers may want more flexibility — ask what works.
Every item you expect to be included: appliances, fixtures, window treatments.
Request all required state disclosure forms be provided within X days of acceptance.
If you want seller credits, specify the amount here.
24–48 hours. Creates urgency without being aggressive.
FSBO sellers are often emotionally attached to their home. A brief, sincere letter explaining who you are and why you love the home can sway a decision when offers are close.
FSBO sellers may need extra time to move out or may be in a hurry. Asking what timeline works best for them — then accommodating it — is worth more than a small price increase.
Rather than demanding the seller hire contractors, ask for a dollar credit at closing. Sellers prefer this — they don't have to manage contractors.
Share your pre-approval letter with your initial offer. FSBO sellers don't have agents verifying buyer qualifications — your pre-approval is your credibility.
Insulting offers end negotiations. Use comps to justify your number. "Based on recent sales of similar homes, I believe $X is fair market value" is much better than just going 20% under asking.
Deliver your earnest money deposit to escrow within the timeframe specified.
Order your home inspection immediately — your contingency clock starts at acceptance.
Submit your purchase agreement to your lender to start the mortgage application.
Order a title search through a title company or attorney.
Review seller disclosures within the required time period.
Nolo has been the go-to legal resource for DIY buyers since 1971. Their real estate guides explain purchase agreements, contingencies, and closing in language anyone can understand.
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