If you’re thinking about selling your home yourself, the potential savings on Realtor fees might seem like a big win. After all, why pay someone else to do what you believe you can handle on your own?
But you may be on the FSBO fence because you’ve heard that homes sold “For Sale By Owner” often sell for less money. But just how much less do FSBO homes sell for?
In this post, we’ll explore the numbers and factors that contribute to the lower sale prices typically seen with FSBO homes. We’ll also share expert insights from two top real estate agents to help you decide if it’s worth the trade-off in your selling situation.
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How much less do FSBO homes sell for?
When selling your home, the potential to save on agent commissions can be tempting, but it’s important to weigh that against the possible decrease in your home’s sale price. According to the National Association of Realtors (NAR), FSBO homes sold for a median price of $310,000 last year. In contrast, homes sold with the assistance of a real estate agent had a median sale price of $405,000. That’s a difference of $95,000 or about 23.5% less for FSBO sales.
“A lot of times, FSBO sellers put the house up for sale, and when they’re not getting the traffic on the property or offers coming in, they start to get frustrated and lower the price,” explains Joel Freis, a top-rated Florida agent with more than 20 years of experience. “They end up taking less than what the home is probably worth, but it just wasn’t marketed properly.”
This disparity in sale price highlights a critical point: while you might save 3% to 6% on Realtor fees, you could be leaving far more money on the table by selling your home yourself. The professional expertise and market reach that a real estate agent offers often result in a significantly higher sale price, more than covering the cost of their commission.
Using NAR’s estimate of 23.5% less proceeds, let’s look at a table that shows how a FSBO sale might compare to an agent-assisted sale at different selling price points:
FSBO vs. Realtor selling price examples
| FSBO sale price | Agent sale price (+23.5%) | Potential gain in proceeds |
| $152,000 | $200,000 | $47,000 |
| $229,500 | $300,000 | $70,500 |
| $306,000 | $400,000 | $94,000 |
| $382,500 | $500,000 | $117,500 |
| $459,000 | $600,000 | $141,000 |
| $535,500 | $700,000 | $164,500 |
| $612,000 | $800,000 | $188,000 |
| $688,500 | $900,000 | $211,500 |
| $765,000 | $1,000,000 | $235,000 |
| $1,147,500 | $1,500,000 | $352,500 |
The commission savings myth: Some sellers may be skeptical of FSBO data being provided by a Realtor association. Even so, if you were to achieve better results and reduce the 23.5% selling price gap — even by half or two-thirds — a top agent can still typically more than cover their 3% listing fee. If you are looking for higher proceeds, the odds are in your favor if you partner with an experienced real estate agent.
“When you work with a real estate agent, we market our client’s property every week so it is consistently in front of potential buyers,” explains Denise Madan, a HomeLight Elite agent in Fort Lauderdale with 25 years of experience. “We also have the experience to price the property correctly. I think a lot of sellers underprice their homes.”
In addition, HomeLight data shows that the top 5% of agents sell homes for up to 10% more than average agents. Top-rated agents also sell homes 10% to 50% faster than the average agents.
Why FSBO sales might result in lower prices
As a homeowner, it’s likely your property is the largest asset you own. When it comes time to sell, it’s wise not to leave anything to chance or luck. Here are some reasons why most homeowners will find their proceeds coming up short:
Lack of marketing power
Selling your home without an agent often means missing out on professional marketing strategies that attract serious buyers. FSBO sellers typically lack the resources and connections to reach a broad audience, leading to fewer offers and lower sale prices.
“I believe experience wins every time over inexperience,” Madan says. “With a skilled agent, there’s so much at our fingertips. We have marketing tools. We have access to so many more websites. We have [a team of] agents. We have relationships. Experience always wins.”
Negotiation challenges
Real estate transactions involve complex negotiations, and without the experience of an agent, FSBO sellers may struggle to secure the best deal. Buyers’ agents, who are skilled negotiators, can take advantage of an inexperienced seller, potentially leading to less favorable terms.
“As an agent, we’re going to be there to negotiate and make sure that the seller doesn’t get overly frustrated and just let the house go at a price way below market,” Freis says.
Limited market exposure
FSBO homes often aren’t listed on the Multiple Listing Service (MLS), the primary platform that real estate agents use to find properties for their buyers. Without MLS access, your home’s visibility is significantly reduced, which can result in fewer offers and lower prices. But there is more to getting your home seen than just being on the local MLS.
“It’s exposure, exposure, and then negotiating skills,” Freis says. ”We’re not selling just one property — we have multiple properties for sale. We have a consistent ongoing marketing plan that brings in more buyers and more exposure to the seller.”
Part of this expanded exposure comes in the form of relocation companies that work with local agents.
“Somebody working for a large company and being relocated from Chicago or New York may only have two or three days to fly into town and look at properties,” Freis explains. “These buyers are not going to be looking online for for-sale-by-owner homes. They’re going to the referred agent, and that agent is going to sit down with them and create a plan that includes assessing the buyer’s needs and wants, and then show them maybe ten properties over that weekend.”
How a FSBO sale can cost you in other ways
Here are some of the key factors that can create costly potholes on your road to a FSBO sale:
Over- or under-pricing
Pricing your home correctly is crucial. Without expert guidance, you might overprice and deter potential buyers or underprice and leave money on the table. Both scenarios can end up costing you more than what you’d save on commission.
Your house sits on the market
Unless you already have a buyer lined up, FSBO homes often stay on the market longer than those listed by agents. “The longer a home sits on the market, it starts to become stale, and buyers start to wonder what’s the matter of the house — how come it wasn’t sold — and they end up making low-ball offers on your property,” Freis says.
You fail to make required disclosures
Most real estate transactions come with legal obligations, including mandatory disclosures about the property’s condition. Failing to disclose required information can lead to legal troubles down the road, costing you time and money.
When does FSBO make sense?
There are some scenarios when taking the DIY route might make sense. For example, if your selling situation involves a ready-buyer — and the price is right.
Existing buyer relationship
FSBO can be a good option if you already have a buyer lined up, such as a friend. This was the case for 57% of FSBO sellers last year. This eliminates the need for extensive marketing and reduces the complexities of the sale process.
Unique circumstances
In some cases, such as selling to a family member or in a rural area where FSBO is more common, handling the sale yourself might be practical. However, these situations are the exception rather than the rule.
Recent changes in real estate commissions
Historically, agent fees averaged between 5% and 6% of the home’s sale price, but recent court-mandated changes in commission and homebuyer rules have reshaped these percentages and reassigned responsibility for buyer Realtor fees.
For generations, the seller typically paid both the buyer and seller agent commissions (roughly 3% and 3%). After closing, the seller’s agent split the compensation with the buyer’s agent. The model has shifted. Beginning in August 2024, a court settlement by the National Association of Realtors decoupled seller and buyer agent commissions, giving buyers the responsibility to negotiate fees directly with their own Realtor.
This means, as a seller, you are now only responsible for paying the listing agent’s fee, which averages about 3% of the selling price. However, some sellers may still offer to pay both the listing and buyer agent commissions as a strategic concession to attract homebuyers and speed up the sale.
In many cases, when you’re weighing the 3% potential savings against a 23% potential loss in proceeds, the math just doesn’t add up in favor of FSBO.
Unsure about selling FSBO?
If you don’t have the time or expertise to list your home FSBO, partner with a trusted, top agent in your market. We analyze over 27 million transactions and thousands of reviews to find you the best agent for your unique situation.
Benefits of working with a top-rated agent
Here’s a quick look at what you can get when you agree to partner with a knowledgeable local agent to sell your home:
Efficient home preparations
A top agent can guide you on which repairs or upgrades will yield the best return on investment. They know what buyers in your market are looking for and can help you focus on the improvements that matter most. A good agent will also know what not to fix.
“Again, we’ll go back to experience,” Madan says. “I think if you don’t have the experience or don’t know the market, you’re setting yourself up to lose money.”
Access to a broader buyer pool
Agents have access to the MLS and other powerful marketing tools, ensuring your home reaches a wide audience. More exposure means more potential buyers, which can lead to multiple offers and a higher sale price.
“What we find is that the sooner you get the home on the market at the right price with the right agent, you’re going to get so much more exposure, it’s going to sell faster and for more money,” Freis says.
Professional negotiation
Experienced agents are skilled negotiators who can advocate on your behalf. They’ll handle the back-and-forth with buyers to secure the best possible terms, saving you from the stress and potential pitfalls of doing it yourself.
“It’s all about negotiation,” Madan says. “Let’s say you’ve never sold a home before, and you put it up there, and you have the agent that comes along with the buyer, and this buyer’s agent is experienced. They’re going to know a lot more about the rules and the regulations, and they’re probably going to have much better negotiating skills than the seller.”
Maximizing sale price
Agents know how to price your home competitively while still maximizing its value. They understand market trends and can set a price that attracts serious offers without leaving money on the table.
“Many FSBO sellers think they will just put the sign in the yard and list the house on the MLS,” Madan cautions. “They don’t realize all the work that goes behind it and how long it can take before you really get to the right [buyer] for the home at the best price.”
Market expertise
A top agent has deep knowledge of the local market, including trends, pricing strategies, and buyer behavior. This expertise allows them to position your home effectively, ensuring it stands out in a crowded market.
Other alternatives to a FSBO sale
Selling with a seasoned agent is the proven way to walk away from the negotiating table with more money in your pocket, but it’s not the only way to simplify or speed up a sale. Here are two additional home-selling options to consider:
Request a cash offer
If you’re looking for a quick and hassle-free sale, consider requesting a no-obligation all-cash offer through HomeLight’s Simple Sale platform. This option allows you to bypass the traditional listing process and sell your home as-is without the need for repairs or showings. Simply answer a few questions about your home and selling timeline, and you’ll receive a cash offer in 24 hours and can close in as little as 10 days.
Use a Buy Before You Sell program
HomeLight’s Buy Before You Sell program lets you purchase your next home before selling your current one, eliminating the stress of timing both transactions perfectly. This option gives you the flexibility to move on your terms without the pressure of selling quickly. Watch this short video to learn more.
Unsure about selling FSBO? Consult with a top agent
Selling your home is a big and complex decision, and while FSBO might seem like a way to save money, the potential downsides could cost you more in the long run.
Working with a top agent offers boundless benefits, from better market exposure to professional negotiation and higher sale prices. Ultimately, the right choice depends on your situation, but having the guidance of a professional can make all the difference.
“It’s all about experience, and then, when things don’t go exactly as planned, people get frustrated, deviate from their plan, and end up, unfortunately, taking less than what the properties are worth,” Freis says.
If you’re ready to maximize your home’s sale price and minimize stress, consider connecting with a top real estate agent through HomeLight’s free Agent Match platform. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.
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