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Comment by galdosdi
It's also a shady technique some companies use to preemptively soften up a candidate they genuinely want for negotiations. They really want you but don't want you to think that so they can get you to accept less in the negotiation. Needless to say, the antidote is to interview as widely as possible even when you're in demand, to get a more objective view of your market value. Also needless to say, it's a huge red flag for company culture. If they don't think you're great, why are they making an offer? Are all your coworkers and managers also going to be people they don't think are great but settled for anyway? Or is it that they're not very profitable and can't afford to pay for quality? Do you want to work for someone who may not be in business much longer?