Selling Your House Can Be an Expensive Endeavor – Here’s How FSBO Can Help
Selling Your House Can Be an Expensive Endeavor – Here’s How FSBO Can Help
Selling a home traditionally costs homeowners 10% or more of the sale price due to commission fees, closing costs, and other expenses. To avoid these costs, many are turning to For Sale By Owner (FSBO) – pronounced “fizz-bow” – a method where homeowners manage the entire sale process themselves, bypassing real estate agents and saving the standard 6% commission. On a $250,000 home, this equates to $15,000 in savings.
What Is FSBO?
FSBO allows homeowners to take full control of selling their property, from staging and listing to negotiating offers. According to the National Association of Realtors (NAR), FSBO transactions accounted for 11% of home sales in 2025. While FSBO homes typically sell for less than agent-assisted homes ($200,000 vs. $280,000), experts attribute this to FSBO sellers often listing smaller, more affordable properties rather than receiving lower offers.
Key Steps for a Successful FSBO Sale
1. How to Price Your Home
- Comparative Market Analysis (CMA): Review recent sales of similar homes in your area. NAR reports that recent sellers typically received 99% of their asking price, with 23% reducing their price at least once.
- Online Valuation Tools: Use automated models to estimate your home’s value based on location, square footage, and features.
- Professional Appraisal: Hire an appraiser ($300–$500) for an unbiased assessment. Buyers’ lenders will require this step later anyway.
Tip: Avoid overpricing (which deters buyers) or underpricing (which raises red flags). Stay objective!
2. Make Your Home Sale-Ready
- Deep clean, declutter, and repair minor issues like leaky faucets.
- Consider a pre-listing inspection to identify hidden problems.
- Stage your home to appeal to buyers’ desire for a “blank slate.”
3. Hire Professionals for Photos and Staging
- High-quality photos and virtual tours are critical, as 50% of buyers find homes online (NAR).
- Work with stagers to create a polished, neutral look that highlights your home’s potential.
4. List and Market Your Home
- Multiple Listing Service (MLS): Pay a flat fee ($300–$500) to list your home via a real estate agent.
- Use FSBO platforms like ForSaleByOwner.com and HomeLister.
- Leverage yard signs, open houses, social media, and flyers. NAR data shows:
- 31% of FSBO sellers used yard signs
- 24% held open houses
- 13% used online ads
Is FSBO Right for You?
FSBO saves money but requires significant effort. Homeowners must act as their own project manager, handling marketing, negotiations, and paperwork. However, for those willing to invest time and research, it can be a rewarding way to maximize profits and retain control over the sale.
