For Sale By Owner (FSBO)

For Sale by Owner (FSBO)

What is FSBO?

For Sale by Owner (FSBO) is the sale of a home directly by the owner without hiring a listing real estate agent. Sellers choose FSBO primarily to avoid paying a seller’s agent commission, but they take on the tasks and risks normally handled by the agent.

Key takeaways

• FSBO sellers handle pricing, marketing, showings, negotiations, paperwork, and closing tasks otherwise performed by a listing agent.
• Sellers may still pay a buyer’s agent commission if the buyer is represented.
• FSBO can save on commission costs but creates time, legal, and pricing risks.
• Around 6% of home sales were FSBO in 2024 (National Association of Realtors).

How FSBO works — seller responsibilities

When you sell FSBO you must perform or arrange for:
* Market research and pricing (comps, market trends).
* Preparing and staging the home; arranging repairs and inspections.
* Marketing: photos, online listings, yard sign, flyers, and (optionally) an MLS listing via a flat-fee service.
* Scheduling and hosting showings and open houses.
* Negotiating offers, counteroffers, contingencies, and timetables.
* Preparing and reviewing legal documents and disclosures (sales contract, property disclosures, lead-based paint, occupancy agreements, etc.).
* Providing documents such as surveys, permits, title information, and HOA paperwork.
* Preparing the deed and completing closing through a title company or real estate attorney (state rules vary).

Typical FSBO costs

FSBO is not commission-free. Common costs include:

Attorney fees
* Many sellers hire a real estate attorney to draft or review contracts and closing documents. Fees often run a few hundred to over a thousand dollars depending on the market and state requirements; some states require attorney involvement.

Buyer’s agent commission
* If the buyer uses an agent, sellers often pay that agent’s commission. Refusing to offer a buyer-agent commission commonly results in buyers requesting price credits, which effectively reduces seller proceeds.

MLS/listing fees
* A single MLS listing via a flat-fee service typically costs roughly $100–$500. Some brokerages offer ala‑carte MLS-only options.

Other costs
* Professional photos, staging, repairs, inspections, title and escrow fees, and the time investment required to manage the sale.

Alternatives to FSBO

• Flat‑fee listing services — pay to list on the MLS and get limited services for a set price.
• Discount brokers — reduced commission in exchange for fewer services.
• Limited‑service agents — provide some agent tasks (pricing, MLS, negotiation) for a flat fee.
• Full‑service agent — higher commission but full support through marketing, negotiation, and closing.

Downsides and risks

• Pricing mistakes — overpricing can stall the sale; underpricing can cost more than agent commissions.
• Legal exposure — improper disclosures or contract errors can lead to disputes or liability.
• Reduced buyer exposure — many buyer agents favor MLS-listed homes and may avoid FSBO listings.
• Time and effort — managing showings, questions, negotiations, and paperwork is time consuming.
• Potential for deals to fall through if inexperienced parties mishandle contingencies or deadlines.

Agent vs. broker and how agents are paid

• Agents are licensed to represent buyers or sellers; brokers have additional licensing and can employ agents.
• Listing and buyer’s agents are usually paid a commission based on the final sale price and split between the two representing parties.

Practical tips for FSBO sellers

• Get a competitive market analysis (comps) before pricing.
• Hire a real estate attorney or use reputable, state‑specific contract templates.
• Consider paying a buyer’s agent commission or offering a cooperative fee to attract represented buyers.
• Use professional photography and consider a flat‑fee MLS listing for broader exposure.
• Be realistic about the time and emotional demands of selling your own home.
• Compare estimated savings against the value of professional marketing, negotiation skill, and legal protection.

Bottom line

FSBO can reduce or eliminate a listing-agent commission and work for sellers comfortable handling pricing, marketing, negotiation, and legal paperwork. However, it carries risks—legal exposure, reduced buyer reach, time costs, and the possibility of pricing errors. Many sellers find a middle path with flat‑fee MLS services, discount brokers, or limited‑service agents that balance cost savings with essential professional support.