Pros and Cons of “For Sale By Owner” (FSBO) Home Sales

Editor’s note: On March 15, 2024, the National Association of Realtors (NAR) announced a landmark lawsuit settlement that will change the way real estate agent commissions are handled in the future. These changes will “decouple” seller and buyer agent compensation. Industry experts predict that this decoupling will likely lower agent fees and give buyers the ability to negotiate commission amounts directly. Learn more.

When selling your house, you have two options: working with a real estate agent or selling it yourself.

This second option, called for sale by owner or FSBO for short, is much less common, constituting only 7% of sales in 2023, according to the National Association of Realtors® (NAR). But why go FSBO to begin with?

Many sellers who decide to handle their home sale do so to avoid paying a commission to a seller’s agent (also called a listing agent). The total commission for a home sale typically falls between 5%–6% of the sales price, which the listing agent will then split (usually 50–50) with the buyer’s agent. FBSO sellers still need to pay the buyers’ agent, meaning they save about 3% of their sales price overall.

But there’s lots to consider before deciding to list FSBO. All the work will fall on your shoulders without the help of an agent, and you’ll be responsible for talking and negotiating with buyers and their agents. Plus, you’ll handle all the closing paperwork, which might feel overwhelming for homeowners lacking professional real estate experience.

So, is saving that money worth it? Let’s look at the pros and cons of for sale by owner.