I noticed an interesting poll on a Baltimore Sun blog from Jamie Smith Hopkins about buyers' and seller's negotiating on "lowball" offers, whether buyers should offer less and how should seller's respond.
Here's the logical response for sellers- If it is a serious offer, negotiate! When the buyer has an approval letter (none of this pre-approval stuff for lowball offers) or cash-on-hand makes them real, not just wasting your time. No home sale contingencies, maybe some inspection contingencies (any smart buyer would want those), but nothing fancy. My advice: TAKE THE MONEY! It may be the most you will get after assuming how much it will cost you stay in the house or continue paying a mortgage,