How to Sell a House By Owner in Huntsville

Homeowners in Huntsville have enjoyed strong appreciation rates, with home values growing as much as 53% in the past five years. However, high interest rates and elevated home prices have slowed buyer activity and reduced offer prices. To retain proceeds, some sellers are researching how to sell a house by owner in Huntsville.

Selling “for sale by owner” (FSBO) to save on Realtor fees is not a popular strategy. DIY sellers often find the process and paperwork overwhelming. This is likely why by-owner home sales hit a historical low last year, with only 6% of sellers choosing this route.

However, for some, the goal of a FSBO sale is part of an exciting adventure. In this post, we will break down how to sell a house by owner in Huntsville, the challenges you might face, and alternatives that can help maximize your proceeds.

Unsure About Selling FSBO in Huntsville?

If you don’t have the time or expertise to list your home FSBO, partner with a trusted, top agent in Huntsville. We analyze over 27 million transactions and thousands of reviews to find you the best agent for your unique situation.

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Editor’s note: No matter how you choose to sell your home, if you would like to consult with a top agent first, HomeLight can connect you to highly-rated professionals in your Huntsville community. Sales data shows that the top 5% of agents sell homes for 10% or more than average agents.

Why sell a house by owner in Huntsville?

For some Huntsville homeowners, selling FSBO offers the appeal of saving on Realtor fees and more control of the transaction. However, recent real estate commission rule changes have reduced the level of potential savings. Traditionally, sellers paid about 6% of the sale price to cover both the listing and buyer agent fees. But a 2024 NAR court settlement has shifted this responsibility, so buyers are now expected to handle their own agent commissions.

This means a Huntsville FSBO seller might save around 3%, about half as much as in the past. Still, this can be an attractive proposition if you’re ready for the work involved. In addition, selling by owner sale can offer a rewarding challenge, but you’ll want to carefully weigh the pros and cons before jumping in.

Pros of selling a house by owner

• The potential to save up to 3% on listing agent fees.
• The chance to take full control of the selling process.
• You communicate directly with buyers or their agents, reducing delays.

Cons of selling a house by owner

• FSBO homes usually sell for less money. (See data below.)
• If you don’t have a buyer lined up, your sale can take longer.
• Managing showings, negotiations, and complex paperwork is time-consuming.
• Without expert support, you might end up with an inferior deal.
• Accurately pricing your home is tricky — and risky if set poorly.
• Marketing your home requires significant time and money.
• You can encounter safety risks when showing your property to unvetted buyers.
• Liabilities can arise if you don’t properly interpret Alabama’s caveat emptor laws regarding defects that pose an immediate threat to health or safety.

Weigh the likely proceeds tradeoff

Selling a property FSBO can be rewarding for some homeowners, but it comes with significant pitfalls that often more than erase the potential agent commission savings.

For example, while you might initially save on Realtor fees, transaction data reveals you’ll likely leave money on the table. According to the National Association of Realtors (NAR), FSBO homes sold for a median of $380,000 last year compared to the median selling price of all homes, which was $435,000. This means on a typical DIT sale, you can potentially lose $55,000 in proceeds in your effort to save $11,400 (3%) in agent commissions.