It was a decision that kept us up at night. My husband and I had lived in our home for nearly a decade, but with the kids grown and out of the house, we knew it was time to downsize. As we sat down to review our finances and calculate potential proceeds from the sale, one figure stood out glaringly—the 6% realtor commission fee. On a house valued at $400,000, that amounted to $24,000. It seemed like an astronomical amount for something we thought we might be able to handle ourselves. After all, hadn’t the internet changed everything? With so many resources available, we wondered: could we sell our home without a realtor and keep more of the proceeds? The answer wasn’t simple, but we were determined to try the FSBO (For Sale By Owner) route. As we navigated the process, we learned that selling house without realtor comes with rewards and challenges. This guide explores what it takes to sell your home without a realtor, the pros and cons, and critical steps to make the process smoother.
What Does FSBO Mean?
FSBO stands for “For Sale By Owner.” It means that the homeowner sells the property without hiring a real estate agent. According to the National Association of Realtors (NAR), 7% of home sales 2022 were FSBO transactions, indicating that while it’s not the most popular option, a significant portion of homeowners successfully sell their properties independently (1).
For many homeowners, the primary reason for selling FSBO is to avoid paying realtor commissions, typically 5-6% of the home’s sale price. Saving that commission on a $300,000 home could mean an extra $15,000 to $18,000 in your pocket. However, selling your house without a realtor requires you to take on roles like marketer, negotiator, and legal expert, which can be daunting if you’re unfamiliar with the process.
Steps to Selling a House Without a Realtor
If you decide to sell your house without a realtor, you must take the following steps to ensure a smooth transaction.
- Set the Right Price
Pricing your home accurately is critical. A price that’s too high can scare off buyers, leading to your home sitting on the market for months. A price too low could mean leaving money on the table. Without the expertise of a real estate agent to advise on pricing, FSBO sellers need to do their research.
Start by analyzing comparable sales in your neighbourhood—these are homes similar in size, age, and condition that have recently sold. Websites like Zillow or Redfin provide estimates of home values but keep in mind that these are just rough guides. For a more accurate estimate, you may consider hiring a professional appraiser. HomeAdvisor says a home appraisal typically costs between $300 and $500, but it can help you price your home competitively (2).
- Prepare Your Home for Sale
Like any seller, you’ll need to prepare your home for the market. This means deep cleaning, decluttering, and staging the property to make it attractive to potential buyers. According to NAR, staged homes sell 88% faster and for 20% more than homes that aren’t staged (3). While professional staging can be expensive, simple steps like rearranging furniture, adding fresh flowers, and applying a new coat of paint can go a long way.
In addition, consider hiring a professional photographer or investing in high-quality photography equipment. Homes with professional-quality photos receive 118% more views online than those with subpar images (4). Good photos can make a huge difference when attracting buyers.
- Market Your Property
You’ll need to get creative with your marketing without a realtor to list your home on the Multiple Listing Service (MLS)—a database that realtors use to share listings. Fortunately, there are plenty of ways to promote your home.
- ForSaleByOwner.com: This platform is designed explicitly for FSBO sellers and allows you to list your home online, reaching thousands of potential buyers.
- Zillow and Redfin: Both platforms allow FSBO listings, offering free or paid options to reach a large audience.
- Social Media: Platforms like Facebook, Instagram, and even LinkedIn can help spread the word about your home. Posting pictures and videos of your property, especially to local groups, can drive interest.
- Yard Signs: Don’t underestimate the power of traditional marketing. Placing a “For Sale By Owner” sign in your yard can attract the attention of people driving through your neighbourhood.
- Show Your Home
You must manage this process yourself since you need a realtor to conduct showings. Be prepared to answer questions about the property, arrange convenient viewing times, and provide tours. It’s essential to remain flexible with your schedule to accommodate potential buyers.
During showings, give the buyer space to explore the home, but be available to highlight the best features of your property. If you’re uncomfortable showing your home alone, you can have a friend or family member join you, but avoid crowding the buyer.
- Negotiate Offers
One of the most challenging aspects of selling FSBO is negotiating offers. While a real estate agent is typically experienced in handling negotiations, you must familiarize yourself with standard terms, contingencies, and closing costs.
When an offer comes in, it will likely include a few key points:
- The offer price
- Contingencies (such as financing, inspection, or sale of the buyer’s home)
- Closing date
- Concessions (buyer asks you to cover some closing costs)
Evaluate each offer carefully, and be bold and counter if the initial offer doesn’t meet your expectations. You should also consult a real estate attorney to ensure that the terms of the offer are legal and in your best interest.
- Handle the Paperwork and Legalities
Selling a home involves a significant amount of paperwork, including the sales contract, disclosure forms, and transfer of title. Without a realtor, working with a real estate attorney or title company is crucial to help you navigate these documents.
A real estate attorney will typically charge between $800 and $1,500, depending on the complexity of the sale, but this investment can ensure you don’t run into legal issues (5). They’ll help you draft and review the contract, confirm all local regulations are followed, and ensure the smooth transfer of ownership.
Pros and Cons of Selling a House Without a Realtor
While selling FSBO can offer significant benefits, it also comes with challenges. Here are some of the main pros and cons.
Pros:
- Save on Commission Fees: The most apparent benefit is the potential to save 5-6% in realtor commissions, which can translate to tens of thousands of dollars.
- Total Control Over the Sale: FSBO sellers have complete control over pricing, marketing, and negotiations, allowing for a personalized sales process.
- Personal Involvement: Many homeowners enjoy being directly involved in selling their homes, giving tours, answering questions, and negotiating deals.
Cons:
- Time-Consuming: Selling a house is a full-time job. FSBO sellers may find the process overwhelming, involving marketing, showings, and paperwork handling.
- Limited Exposure: Without access to the MLS, FSBO listings might not reach as many potential buyers as agent-listed homes. However, online platforms like Zillow and Redfin help mitigate this limitation.
- Lack of Experience: Without a realtor’s expertise, you might underprice or overprice your home, miss key negotiation opportunities, or overlook critical legal details.
How Much Do FSBO Sellers Save?
One of the biggest motivations for going FSBO is the potential savings. However, while sellers can save on commission, there are costs involved in selling a house on your own.
A 2022 report by the National Association of Realtors found that the median sale price for FSBO homes was $225,000, compared to $330,000 for agent-assisted sales—a difference of 32% (1). This data suggests that while FSBO sellers can save on commissions, they may not achieve the same sale price as sellers who use a realtor.
That being said, FSBO success stories exist, particularly in hot real estate markets where properties sell quickly. In a competitive market, FSBO sellers may easily attract buyers and close deals without a realtor.
Conclusion: Is Selling a House Without a Realtor Right for You?
selling house without realtor can be a rewarding experience, especially if you’re confident in your ability to handle the responsibilities involved. By saving on commission fees, FSBO sellers can pocket thousands more from selling their homes. However, the process requires time, effort, and a solid understanding of real estate transactions.
If you’re organized, comfortable with negotiation, and willing to take on the marketing and legal aspects, selling FSBO might be the right choice. On the other hand, hiring a realtor could still be worth the investment if you’re looking for a more hands-off experience or are unsure about pricing and paperwork.
Ultimately, the decision to sell your home FSBO depends on your specific situation, your comfort level with the sales process, and the dynamics of your local market. With careful planning and attention to detail, selling your home without a realtor can be viable—and financially rewarding.
