For Sale by Owner vs. Realtor: What’s the Real Cost?

When it’s time to sell your home, one of the first big decisions is whether to go it alone or hire a real estate professional. At first glance, selling your home without a Realtor—commonly known as For Sale by Owner (FSBO)—might seem like a smart way to save money. But what’s the real cost of selling your home yourself?

Let’s break down the differences and what they mean for your bottom line.

FSBO: Saving on Commission—But at What Cost?

The main reason sellers choose FSBO is to avoid the standard 5%–6% real estate commission, which is usually split between the buyer’s and seller’s agents. On a $400,000 home, that’s a potential savings of up to $24,000.

But those savings might be short-lived. FSBO homes often sell for less than agent-represented homes—and they typically take longer to sell.

Pricing Pitfalls: Are You Undervaluing Your Home?

Setting the right price is crucial. Price too high and your home might sit on the market. Price too low and you could leave tens of thousands of dollars on the table.

According to the National Association of Realtors (NAR):

The median sale price for FSBO homes was $310,000, compared to $405,000 for agent-assisted homes.

That’s a $95,000 difference. Even after paying commission, most sellers come out ahead by working with a professional who understands the market.

Marketing & Exposure: Will Buyers Even See Your Home?

Realtors have access to the Multiple Listing Service (MLS), professional photography, targeted ads, social media promotion, and a network of contacts—all designed to get your home in front of serious buyers fast.

FSBO sellers often rely on:

• Yard signs

• Limited online platforms

• Word of mouth

Less exposure means fewer offers—and less leverage at the negotiating table.

Contracts & Legal Risks: Are You Covered?

Selling a home involves complex contracts, disclosures, inspections, and legal obligations. One missed deadline or incorrect disclosure can lead to major financial or legal consequences.

A Realtor protects you by:

• Managing deadlines and paperwork

• Ensuring compliance with local laws

• Handling negotiations and contingencies

With FSBO, you assume all legal and transactional responsibilities on your own.

Negotiation Experience: Who’s in Your Corner?

An experienced real estate agent is your advocate when it comes to:

• Negotiating price

• Handling repair requests

• Dealing with low appraisals or financing issues

Without professional support, FSBO sellers may struggle to manage emotional negotiations, often giving in to buyer demands or walking away from deals that could have worked out.

The Real Cost Comparison

Factor	FSBO	Realtor-Assisted
Commission Fees	0%–3% (buyer’s agent only)	~5%–6% total
Average Sale Price	Typically lower	Often significantly higher
Time on Market	Longer	Shorter
Marketing Reach	Limited	Broad and professional
Legal Support	DIY	Handled by professionals
Negotiation Power	Minimal	Strong and experienced

 Which Option Truly Pays Off?

While FSBO might seem like a money-saving shortcut, the hidden costs—lower sale price, limited marketing, legal risk, and added stress—often outweigh the potential savings.

Hiring a Realtor not only brings expertise and peace of mind, but it can also lead to a higher sale price and smoother transaction.

Ready to Sell with Confidence?

If you're considering selling your home and want to maximize your return, let's connect. We’ll create a tailored marketing plan, handle the details, and help you sell quickly and profitably.

Contact us today to schedule your free home valuation!