3 Reasons FSBO Might Not Be Right for You

FSBO often sounds like a good, affordable alternative to hiring an agent — but the stress and risks of selling a home on your own may not be worth it.

Homeowners who are preparing to list their homes on the market have a big decision to make as they kick off their transactions: either to hire a top agent or choose FSBO.

While most sellers choose to partner with a leading agent in their markets, FSBO — or for sale by owner — may appeal to buyers as a cost-saving alternative.

When you choose to list your home as FSBO, you forgo the costs (and services) of a listing agent. However, sellers are still responsible for paying commission to the buyer’s agent.

Typically, agents charge a commission rate ranging between 4% and 6% of the final sales price of the home. For a home that costs the average national sales price of $350,300 as of January 2022, that could result in savings between $14,012 and $21,018.

Is FSBO Actually Worth It?

Despite the potential for possibly cutting down the transaction costs associated with paying a listing agent, FSBO might not be the right choice for you and your home sale.  

Without an agent, you won’t get to access the immense benefits of working with an experienced, knowledgeable professional that is an expert in your local market.

Besides that, you may not see the cost savings you expected by the time you get to the closing meeting. Working with a top agent can actually save sellers money through strategic negotiations and profit-boosting strategies. It’s possible that you may end up paying the cost of agent fees to other closing expenses — and have to persevere through the stress of selling a home on your own.

A FSBO has its own merits and detriments, but it also carries additional responsibilities.

Here is a deeper look at a few of the reasons why FSBO might not be right for you, and how partnering with a top agent can help you maximize the benefits of your home sale.

#1. FSBO is Difficult for First-Time Sellers

When you need medical help, you naturally go to a medical professional. Similarly, if you need legal assistance, you consult a lawyer. When doing something as high-stakes as selling your home, it makes sense to rely on a reputable real estate professional.

Choosing FSBO can complicate the transaction experience for all sellers, but it can be especially difficult if it’s your first time selling a home.

While you have observed what it’s like to sell a home from a distance during your home purchase, you have not experienced the entire process for yourself. Attempting to sell your first home on your own can mean getting in over your head only to feel overwhelmed as the escrow process gets going.

Conversely, working with a top agent means you will be guided step by step throughout the entire sales process — from setting the price and creating your online listing to negotiating contingencies.

One of the biggest responsibilities of a trustworthy agent is to protect their seller clients from potential legal risks. Top agents mitigate the immediate and long-term legal risks involved in selling a home.

Talented agents work hard to ensure that all of the paperwork, documents, and contracts are properly filled out and submitted to safeguard their clients from potential legal discrepancies.

For example, improperly filling out the seller’s disclosure form can invite potential legal action from buyers years after you’ve sold the home. Since real estate laws and standards vary by state, working with a local agent ensures that you are complying with all expectations to secure a safe sale.

A professional agent can provide guidance and understands the implications of the transaction.

If you are not an expert, you may make a mistake when selling that can cost you time, money, and stress in the future. Since there are many moving pieces involved in a deal, it’s safer to trust a professional.

#3. Agents Negotiate on Your Behalf

As a FSBO seller, you’ll likely be working with a buyer that is being assisted by their agent. When it comes to negotiations, you will be representing yourself while the opposite party has a professional representing them.

Since you are not an expert real estate negotiator by profession, you may find yourself in a weaker position to assert your needs and conditions throughout the sale. Real estate negotiators can get incredibly granular in terms of sales conditions and payment responsibilities, so FSBO sellers can quickly fall to a disadvantage.

In order to access the best overall deal for your home sale, it’s better to have a professional on your team.

How to Find a Great Agent

If you want to work with the perfect agent that can safeguard, streamline, and enhance your selling experience, forego FSBO and opt for a top agent in your market.


To get connected with a great local agent, find your best fit on RealEstateAgents.com.

Scott Castillo
Find Your Perfect Agent