What FSBO Really Means (& If You Should Consider It For Your Home)

When browsing homes for sale on Zillow or other real estate listing sites, you may encounter properties listed as "FSBO". Pronounced fizz-bow, this acronym stands for "For Sale By Owner." This is where a property owner sells their home without a real estate agent, handling every task an agent otherwise would, including photographing, listing, marketing, and showing the home. Some folks may think this is a good idea, especially if they want to save money on the agent's commission. However, it's not ideal for everyone. This process can take much longer without the reach and knowledge of a real estate brokerage or agent. Whether you should consider FSBO for your home depends on how fast you want to sell. You should also learn about any local regulations that may apply to a FSBO sale.

In both volume and sale price, homes sold via FSBO pale in comparison to those facilitated by a real estate agent. According to the National Association of Realtors, FSBO homes made up just 6% of the sales in 2024. Of that percentage, the average home sold for $380,000, while properties listed by real estate agents sold for an average of $435,000, marking a notable difference in the methods. With that in mind, here's what to expect during the FSBO process, and what to consider if you want to sell your home via this method.

All responsibilities that come with selling a home fall on you during a FSBO sale. This includes photographing, listing, and showing your property, all of which can be time-consuming. Pricing your home is a crucial step for FSBO. Without an agent's help with determining the listing price, you must research the market for comparables and recent neighborhood sales to set a competitive asking price. You can get a home appraisal for your real estate listing; however, a service like this costs around $350 or more. Note that any buyer interested in getting a mortgage for your property must use an appraiser approved by their lender. 

With the property price determined, the next step is marketing your home. You can list on Zillow for free as FSBO, but your property won't be displayed together with agent-assisted listings, which are shown by default on the marketplace. Instead, potential buyers will have to find the listing by filtering specifically for properties listed by the owner. There are also two states, Wisconsin and Montana, where Zillow isn't allowed to show owner-listed homes. To extend your reach, you can pay an agent to list your home on the MLS (Multiple Listing Service) with only yourself listed as the contact. However, after you sell the property, there's a high chance you will still have to pay the buyer's agent's fee. Finally, depending on where you live, the transaction may need to be facilitated by a qualified real estate attorney to ensure a fair deal for both sides, and this can be costly. A total of 21 states, including Alabama, Maryland, and New Jersey, in addition to Washington, D.C., require a real estate attorney for all home buying transactions, regardless of whether the property is FSBO. 

Thinking about selling your home via FSBO and wonder if it's a good idea? You should think hard about whether you're prepared to go through the entire process without the assistance of a real estate agent. In situations where you need to sell your home fast, FSBO might not be the best choice due to decreased visibility, especially compared to the properties listed on the MLS. This might also be a bad route to take if you wish to make a significant profit on the sale, since on average, FSBO homes sell for less than agent-listed properties. However, if you're in a hot market and think you can sell the home quickly, it might be worth a try.

There are some situations in which a private home sale comes with advantages. For instance, if there's already a potential buyer lined up, selling it on your own might be a good tactic, since you're eliminating most of the tasks associated with the process, i.e. listing or photographing. The same can apply if you're trying to sell an inherited home or a second property, and you don't have a specific timeline for the sale. In these scenarios, the process can be a bit more streamlined, though you will still likely need legal assistance.