The Truth About For Sale by Owner (FSBO)
- Scott Sweeney
- 6 days ago
- 3 min read
When it comes to selling a home, some owners consider skipping the traditional agent route and trying to sell the property themselves. This is known as For Sale by Owner (FSBO). At first glance, it might seem like a way to save thousands in commission fees but the reality is often far more complex.
Whether you’re a home seller, buyer, or real estate investor, understanding the pros and cons of FSBO can help you navigate the market more strategically.
Why Sellers Choose FSBO
Avoiding Commission Fees – The most common reason sellers attempt FSBO is to save the listing agent’s commission, typically 2.5–3% of the sales price.
Perception of Simplicity – Some believe they can sell quickly by posting online and hosting a few showings.
Past Real Estate Experience – Sellers who have previously bought or sold homes may feel they can handle it themselves.
The Hidden Challenges of FSBO
While FSBO might sound appealing, the process involves much more than sticking a “For Sale” sign in the yard.
1. Pricing Mistakes Without access to local market data and professional guidance, FSBO sellers often misprice their home — either too high (leading to long market times) or too low (leaving money on the table).
2. Limited Exposure Agent-listed homes are syndicated across the MLS and major real estate platforms, attracting more buyers. FSBO homes may only be visible on a handful of sites, limiting reach.
3. Negotiation Disadvantages Professional agents negotiate every day — FSBO sellers don’t. Without experience, sellers may end up accepting less favorable terms or giving unnecessary concessions.
4. Legal and Contract Risks From disclosures to contingencies, one mistake in the paperwork could lead to costly legal issues. Real estate transactions involve strict timelines and legally binding terms that must be handled precisely.
5. Time and Stress Selling a home means juggling calls, scheduling showings, screening buyers, and following up — all while managing your normal life.
The Buyer’s & Investor’s Perspective
For buyers and investors, FSBOs can sometimes be an opportunity — but also a risk.
Opportunities: Less competition if the property isn’t widely marketed, and potential for negotiating a lower price.
Risks: Sellers may not be familiar with disclosure requirements or may overvalue the property, making deals more complicated.
The Numbers Don’t Lie
According to the National Association of REALTORS®, FSBO homes typically sell for about 15–20% less than agent-represented homes. Even after paying commission, sellers often net more with an agent because of higher sale prices and better negotiations.
Bottom Line
While FSBO can work for some, it’s not the money-saving shortcut it appears to be. Selling a home is a complex process that requires pricing expertise, marketing reach, negotiation skills, and legal knowledge. For most sellers, partnering with a professional real estate agent results in a smoother transaction and a better bottom line.
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About Scott Sweeney
SweeneySells
Full Time Realtor 13 Years +
Over 100 Families Served
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Buying & Listing Specialist
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CSUS Business & Marketing Graduate 2006
With quickly serving over a 100 families, Scott Sweeney has become a top 5% producing Realtor in the greater Sacramento area who has helped clients from the Bay Area to South Lake Tahoe. Scott has a Bachelor Of Science in Business Administration, with a concentration in Marketing from CSUS. His education, and extensive background in the hospitality, marketing, and real estate industries, have helped Scott to become one of the leading, and most sought after agents in the area.
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