Weighing the Pros and Cons of Selling FSBO
As a retired real estate agent with over 25 years of experience, I have had countless homeowners ask me whether they should try to sell their home without hiring a real estate agent. This approach is commonly referred to as FSBO, short for “for sale by owner.”
While I may have some professional bias, I always strive to provide a balanced perspective. My goal is not to pick sides, but to help you understand both the benefits and drawbacks so you can make the right decision for your situation.
The Most Common Reason People Go FSBO
Let’s start with the most obvious benefit of going for sale by owner (FSBO): saving on commission. Many sellers believe they can pocket more money by avoiding the typical agent commission. And it’s true that listing commissions are negotiable, not set in stone.
Other reasons people choose FSBO include wanting to be more involved in the process, past negative experiences with agents, or a belief that they can handle the sale just as effectively on their own.
Where FSBO Can Fall Short
That said, there are several important downsides to be aware of. The biggest issue I have seen repeatedly over my career is sellers who are selling for sale by owner are leaving money on the table. For Sale By Owner listings are typically not in the Multiple Listing Service (MLS), which means they are not exposed to the widest possible audience.
The MLS is where buyers’ agents pull listings for their clients and where major home search sites get their data. Without MLS access, your home is likely to get fewer showings and offers.
Marketing is another major concern. Professional real estate agents use professional photographers and understand how to position a home to attract interest. Most FSBO sellers use phone cameras and may not highlight the features that matter most to buyers. This can result in less buyer interest and ultimately a lower sale price.
Navigating Offers Without Guidance
Even when a buyer expresses interest, FSBO sellers often lack the expertise to negotiate favorable terms. I have seen sellers accept offers without realizing they could have negotiated contingencies, timelines, or price more effectively.
A real estate agent can help ensure that the terms of your contract are aligned with your goals and that you are protected throughout the process.
Managing the Details and Legalities
Selling a home involves more than just marketing and negotiating. A professional agent will guide you through inspections, appraisals, title coordination, closing documentation, and communication with attorneys or lenders. FSBO sellers are often overwhelmed by the details and unsure of how to proceed at key steps.
Also keep in mind, even if you choose to go FSBO, you may still end up paying a commission to a buyer’s agent. That is something to budget for from the start.
What About Limited Service Brokers?
If you want some help but do not want full-service representation, a limited service broker might be an option. These brokers charge a flat fee to list your home in the MLS and may offer a menu of a la carte services like photography or contract help.
While these services can increase visibility, they still fall short of what a dedicated full-time agent provides. And costs can add up quickly if you choose more than just the basic package.
A Better First Step
Before you decide to go the FSBO route, I recommend interviewing two or three experienced local agents. Ask about their commission structure, the services they provide, and their honest opinion of how FSBO sales perform in your area.
You may be surprised by how flexible some agents can be, and how much value they offer beyond simply listing your home. A good agent can often net you more money even after paying a commission.
Want an Introduction?
If you are thinking about selling and want help weighing your options, I would be happy to connect you with a trusted real estate agent in your area. Reach out today and I’ll make a personal introduction.
