Selling your home on your own, known as a For Sale By Owner (FSBO) transaction, can be an attractive option to maximize sale proceeds by avoiding real estate agent commissions. However, going the FSBO route also comes with challenges and risks if you don’t know what you’re doing.
This comprehensive guide covers everything you need to know about selling your house by owner. We’ll discuss the pros and cons, provide step-by-step instructions, and share insider tips on how to FSBO your house.
What is For Sale By Owner (FSBO)?
FSBO stands for “For Sale By Owner” and refers to selling real estate without representation from a real estate agent. The homeowner takes on the responsibilities that a listing agent typically handles, including:
- Pricing the home
- Marketing the listing
- Showing the property
- Negotiating offers
- Preparing contracts and disclosures
- Navigating the closing process
The main motivation for FSBO is to avoid paying real estate agent commissions, which are traditionally 5-6% of the sale price. By not hiring an agent, the seller keeps the full commission amount.
However, FSBO comes with tradeoffs, as we’ll explore throughout this guide.
Pros of Selling Your Home FSBO
Save on real estate agent commissions
This is the biggest incentive for going FSBO. By not hiring a listing agent, you avoid paying their approx. 3% commission fee. On a $300,000 home sale, that’s $9,000 extra in your pocket.
Greater control over the process
You make all decisions regarding marketing, showings, negotiations, etc. There’s no agent as a “middleman.”
More personalized experience
You interact directly with buyers instead of going through an agent. Many FSBO sellers know the buyer.
Potentially quicker process
There is no need to coordinate with an agent for showings and open houses. You control the timeline.
READ ALSO: The Home Appraisal Process Explained for Buyers and Sellers
Cons of Selling Your Home FSBO
Requires more time and work
You take on all responsibilities, like staging, marketing, showings, and paperwork.
Properties may sell for less
In 2021, the median FSBO home sold for $225,000 vs. $345,000 for agent-assisted home sales.
Lack of expert guidance
You lose an agent’s expertise on pricing, negotiations, contracts, and more.
Marketing limitations
Your network and reach may be smaller than a top agent’s resources.
Dealing with problems alone
There is no agent to help resolve issues like inspection requests or title problems.
Is FSBO right for you? Key Considerations
Before deciding on FSBO, weigh factors like:
- Do you have the time and willingness to take on the entire sales process?
- Are you comfortable negotiating and interacting directly with buyers?
- How quickly do you need to sell your home?
- Is your property in a hot sellers’ market?
- Do you already have a potential buyer in mind?
If you can commit to the work required, have a buyer pool, and are in a strong market, FSBO may be a good route.
Step-by-Step Guide to Selling Your House (FSBO)
Follow this 10-step process for a successful FSBO sale:
1. Prepare Your Home for Sale
Make repairs, stage rooms, declutter, clean, and enhance curb appeal. First impressions matter to buyers.
2. Research Comps to Price Your Home
Study similar homes that sold recently to identify a competitive but profitable listing price.
3. Hire a Photographer
Professional photos attract more buyers. Don’t skimp on quality listing photos.
4. Create a Detailed Listing Description
Highlight special features and recent updates. Mention if you’re offering a buyer’s agent commission.
5. List Your Home on Relevant Sites
Post on MLS via a flat fee service. Also list on Zillow, Facebook Marketplace, and other sites.
6. Market Your FSBO Listing
Advertise on social media, put up yard signs, host open houses, and connect with local agents.
7. Manage Showings and Communications
Reply promptly, accommodate buyers’ schedules, and follow up after showings.
8. Evaluate Offers and Negotiate
Require proof of funds, get everything in writing, counteroffer as needed, and consult an attorney.
9. Close the Sale
Hire a real estate attorney to handle closing documents and legal filings.
10. Troubleshoot Any Issues
Remain flexible and patient throughout the process to resolve problems smoothly.
Let’s explore these steps in greater detail:
1. Prepare Your Home for Sale
Properly preparing your home before listing it on FSBO will maximize your sale price and attract more buyers. Key tasks include:
Clean thoroughly – A spotless house makes a great impression. Deep clean carpets, windows, and appliances.
Declutter – Remove excess furniture and personal items so rooms feel more spacious.
Make minor repairs – Fix leaky faucets, squeaky hinges, and damaged walls to show pride of ownership.
Update lighting fixtures – New light fixtures feel fresh and modern.
Stage each room – Declutter surfaces and arrange furnishings to showcase the space.
Enhance curb appeal – Power wash siding, mow lawns, trim bushes, and add flowers. First impressions matter.
Hire a home inspector (optional) – Inspect for issues and make repairs upfront to avoid requests later.
The better condition your home is in, the more offers you are likely to attract. So invest time and money to get your house market-ready before listing FSBO.
2. Research Comps to Price Your Home
One of the most important steps when selling FSBO is pricing your home accurately and competitively. Take time to research “comps” – similar homes that have sold in your area recently.
Check online valuations – Use Zillow, Redfin, or Realtor.com for a baseline figure.
Find recent sales data – Search property records for sold comps with similar beds/baths/square footage.
Compare listing prices – Look at active listings comparable to your home.
Consider hiring an appraiser – Get a professional appraisal for the most accurate opinion of value.
Make adjustments – Factor in differences like renovations, lot sizes, and locations.
Choose a competitive price – A price on the lower end of your range to generate interest. You can negotiate later.
Pricing right from the start helps sell your home quickly and for top dollar. Leave emotions out of it and let the data guide your pricing strategy.
3. Hire a Real Estate Photographer
Great photos are one of the best investments you can make when selling FSBO. Professional real estate photographers know how to make a home look its best.
Use a wide-angle lens to capture more of the rooms.
Mind the lighting – Proper lighting eliminates dark corners and washes out colors.
Capture every room from multiple angles.
Highlight exterior shots of the home and yard.
Consider virtual staging to fill empty rooms with virtual furnishings.
While you can take DIY photos with your smartphone, hiring a real estate photographer is worth the money to really showcase your property online.
4. Create a Compelling Listing Description
Craft an informative listing description that highlights your home’s best features, recent updates, and desirable amenities. Mention neighborhood perks like schools, parks, and restaurants.
Be sure to specify if you will be offering a buyer’s agent commission of 2-3%, as this will incentivize agents to show your home to their clients.
Also fill out the listing details thoroughly, including facts like square footage, number of bedrooms/bathrooms, year built, school district, HOA fees, etc. The more details the better.
5. List Your Home on Relevant Sites
To maximize exposure as a FSBO:
- Pay for MLS listing access – This syndicates your listing to Zillow, Realtor.com and more.
- Post on Zillow – Provides good visibility to home shoppers.
- List on Facebook – Market via Facebook Marketplace and local community groups.
- Advertise locally – Place classified ads in local newspapers/magazines.
Cast a wide net by getting your FSBO on multiple platforms where buyers will be searching.
6. Market Your FSBO Listing
You’ll need to play marketing agent to get the word out about your FSBO listing.
- Share across your social networks.
- Ask friends to share your listing with their contacts.
- Post on Nextdoor and local Facebook groups.
- Put up FSBO signs on busy streets.
- Hold open houses.
- Connect with local real estate agents.
- Follow up with buyers after showings.
Marketing requires work, but it pays off to reach more qualified buyers.
7. Manage Showings and Communications
As a FSBO seller, you’ll likely interact directly with potential buyers to schedule showings.
- Reply promptly to inquiries and showing requests.
- Ask buyers to provide proof of funds before showing.
- Give at least 24 hours notice if you must reschedule.
- Set showings at least 1 hour apart if scheduling several in one day.
- Remove valuables and secure personal information before showings.
- Follow up after showings to answer any additional questions.
Staying organized and communicating professionally leaves buyers with a positive impression.
8. Evaluate Offers and Negotiate
Once you start receiving offers, keep these tips in mind:
- Require all offers in writing, including buyer contact info and proposed closing date.
- Ask buyers to provide mortgage pre-approval letters to confirm they are qualified.
- Compare offers objectively based on price, closing date, and conditions.
- Make counteroffers rather than rejecting lowball offers.
- Negotiate offers to maximize price and agreeable terms.
- Consult a real estate attorney to review contracts before signing.
- Avoid accepting the first offer; wait to see if more competitive bids come in.
As a FSBO seller, you’ll have to negotiate offers without agent expertise. Do your homework to broker the best possible deal.
9. Close the Sale with Legal Help
Navigating the legalities of a real estate transaction is tricky without professional help. Consider hiring a real estate attorney to handle critical closing tasks:
- Reviewing and completing contracts and disclosures
- Coordinating with the buyer’s attorney
- Finalizing the title transfer
- Conducting the closing process and overseeing documents
- Disbursing funds and recording the sale
A few thousand dollars in legal fees can give you invaluable peace of mind that all legal bases are covered.
10. Troubleshoot Any Issues
No transaction is without hiccups, but preparation and patience as a FSBO seller will help you tackle problems smoothly.
- Remain flexible on showings and the closing date if issues arise.
- Seek solutions rather than getting frustrated if the buyer raises concerns.
- Be proactive with repairs and negotiations to prevent deal delays.
- Lean on your real estate attorney for guidance as needed.
- Keep lines of communication open with the buyer to resolve problems together.
By anticipating issues and addressing them professionally, you’ll stay on track to close the sale successfully.
FSBO Mistakes to Avoid
When selling your home on your own, sidestep these common pitfalls:
- Not getting on the local MLS
- Refusing to pay a buyer’s agent commission
- Overpricing or underpricing your home
- Letting the listing sit too long without dropping the price
- Skimping on home preparation and cleaning
- Taking poor quality listing photos
- Being inflexible with showings and negotiations
- Not hiring a real estate attorney to help close
Do your homework to avoid missteps that could cost you time, money, and serious buyers.
READ ALSO: How to Start Investing in Real Estate with No Money
To Recap
Selling your house on your own can be rewarding, financially and as a learning experience, if you’re willing to put in the work. However, it also comes with risks and drawbacks. Follow the expert tips outlined here to maximize your chances of success when FSBOing your property.
Commit to thoroughly preparing your home, researching comparable sales, pricing it right, marketing aggressively, and obtaining legal guidance. With diligence and perseverance, you can sell your house without an agent and walk away with more money in your pocket at closing. Just know what you’re getting into!
Overall, approach FSBO with realistic expectations. And if at any point the process becomes too complex or demanding, don’t be afraid to bring in a real estate professional. Their expertise can save you time, money, and headaches in the long run.
FAQs About Selling Your House FSBO
Should I get my home appraised before selling FSBO?
An appraisal can give you an unbiased opinion of value from a licensed professional. While not required, for a few hundred dollars an appraisal can provide peace of mind you’ve priced your home accurately.
Can I sell on the MLS without an agent?
Yes, many flat fee MLS listing services will submit your home to the local multiple listing service for a one-time fee without agent representation. This expanded reach is worth the nominal cost.
Should I offer a commission to a buyer’s agent?
It’s strongly recommended. Buyer’s agents expect compensation for their services, so not offering a 2-3% commission on your FSBO listing could limit your buyer pool.
Is it better to sell with an agent or FSBO?
There’s no definitive answer. FSBO saves on commissions but requires more work. An agent shoulders the burden in exchange for a commission. Weigh your priorities and local market conditions to decide.
How much do FSBO homes sell for compared to with an agent?
In 2022, FSBO homes sold for a median of $225,000 compared to $345,000 for agent-assisted home sales, according to NAR data. The price difference depends on market and home factors.
Should I be present during showings when selling FSBO?
If possible, it can be beneficial for you as the FSBO seller to be present to point out home features and build rapport with potential buyers during showings.
In another related article, The 2024 Real Estate Market: Trends, Forecasts and Insights for Buyers and Sellers
