Thinking about trying a sale-by-owner approach to selling your home? It seems tempting to avoid that commission fee. But hold on! There’s more to the story than just saving money.
The truth is, FSBO homes (that’s “for sale by owner” homes) typically sell for much less than agent-assisted homes and open sellers up to making crucial mistakes. You’ll also spend a ton of time managing everything yourself—from marketing to handling real estate transactions.
Let’s look at why using a real estate agent might actually put MORE money in your pocket, not less.
For informational purposes only. It’s recommended to consult with a licensed real estate professional before proceeding with any real estate transaction.
Quick Points on FSBO Transactions
- FSBO homes sold for tens of thousands less on average than agent-assisted homes sold for
- For sale by owner problems include less exposure to potential buyers
- Most buyers work with real estate agents who know how to negotiate better deals
- Your emotional connection can lead to setting the wrong selling price
- FSBO sellers face many legal issues and paperwork challenges
Why Selling Your Home Yourself Causes Problems
Trying to handle a home listing yourself might sound smart. But many homeowners who try FSBO sales face some big problems.
FSBO homes sold fetch lower prices. Plus, you have to do all the real estate marketing yourself. And when it comes time to negotiate, you’re likely facing a professional buyer’s agent who handles real estate transactions for a living.
These challenges can cost you way more than you save on the listing agent’s commission.
FSBO Homes Sell for Much Less Money
Hoping to save money by not paying commission? The numbers tell a different story.
There haven’t been many studies in Canada, but in the United States, FSBO homes sold for an average of $380,000 in 2023. Agent-assisted homes sold for $435,000. That’s a $55,000 difference!
Why such a big gap? Without a real estate agent, you might not know what your home is truly worth. You also miss out on:
- Professional listing photos that make your home look amazing
- Access to the Multiple Listing Service (MLS) where most home sellers find success
- Connections to serious buyers who are ready to make a purchase price offer
Ask yourself: Is saving a listing agent’s commission worth possibly leaving tens of thousands on the table?
You Must Do All the Marketing Yourself
When you choose the FSBO route, all marketing falls on your shoulders. And it’s more work than most people realize.
Without a seller’s agent, you need to:
- Create your own home listing that stands out
- Find a quality professional photographer or take your own pictures (bad photos turn buyers away FAST)
- Write compelling descriptions that highlight your home’s best features
- Figure out where to advertise beyond just putting a sign in the yard
- Schedule and host every showing yourself
Most FSBO sellers simply don’t have the time, tools, or know-how to market effectively. This usually means fewer potential buyers see your home. And fewer buyers means less competition and lower offers.
You Handle All Negotiations Alone
Ever tried negotiating against a pro? That’s what happens in for sale by owner situations.
Most buyers bring their own real estate agent—someone who negotiates home purchases for a living. You’ll be at a huge disadvantage when discussing purchase price if you’ve never done this before.
The best real estate agents know how to:
- Spot lowball offers and counter effectively
- Protect your interests in contract terms
- Navigate home inspection issues without losing the deal
- Handle earnest money deposits properly
- Keep emotions out of business decisions
Without this expertise, you might accept an offer that’s thousands below what you could have gotten. Or miss important legal issues in the contract that should protect you as one of the home sellers.
Your Emotional Connection Gets in the Way
You love your home. Those memories of cozy mornings in the living room and birthday parties in the backyard? They matter to you.
But here’s the hard truth: buyers don’t care about your memories. When your house sells, they’re thinking about their future, not your past.
Being too attached to your home can cause real problems for FSBO sellers:
- Setting an unrealistic selling price based on what it means to you, not market value
- Taking offense when buyers point out things that need fixing
- Struggling to see your home objectively as buyers do
An average real estate agent creates a buffer between your emotions and the real estate transaction. They help you see your home as a product in the marketplace. Their help can help reduce the stress of selling a home.
It Takes As Much Time As a Part-Time Job
How much free time do you have? Selling without an agent will eat up most of it.
For sale by owner problems include finding time for:
- Researching comparable home prices in your area
- Taking photos and creating listings
- Responding to inquiries (many from unqualified buyers)
- Scheduling and hosting showings (often on evenings and weekends)
- Handling paperwork and understanding legal liabilities
Most FSBO sellers report spending 20+ hours per week on selling activities. That’s before you even get to negotiating offers or closing details.
Could you use that time to earn more at your regular job than you’d save on commission? For many homeowners, the answer is yes.
Legal Risks You Face Without an Agent
One of the biggest for sale by owner problems is handling legal issues. When you sell without a real estate agent, you’re responsible for:
- Making sure all disclosures meet local and national standards
- Understanding contract terms and legal liabilities
- Knowing which inspection items you’re legally required to fix
- Handling earnest money correctly (mismanaging this can lead to lawsuits)
- Navigating title issues and closing documents
Don’t forget all of the selling documents you’ll have to keep track of.
Many homeowners don’t realize that a mistake in the home selling process can lead to serious legal issues down the road. These can cost thousands in legal fees—far more than you saved on commission.
Why Smart Sellers Use Real Estate Agents
Smart sellers know that agents bring value far beyond just listing a house. They bring expertise, connections, and time-saving services that often lead to higher sale prices.
Let’s see what you get when you work with the best real estate agents.
Agents Know What They’re Doing
Real estate agents aren’t just salespeople—they’re trained professionals who understand a complex market.
A good real estate agent brings:
- Knowledge of what similar homes actually sold for (not just what they listed for)
- Understanding of neighbourhood-specific trends that affect your selling price
- Experience with real estate transactions and legal requirements
- Skills in highlighting your home’s best features when your house sells
- Ability to spot and solve problems before they kill your deal
The numbers back this up. FSBO homes typically sell for less than agent-assisted homes sold for. This expertise pays for itself many times over.
Agents Have a Network of Professionals
When you hire a real estate agent, you get access to their entire professional network.
This includes:
- Other agents with qualified buyers already looking for homes
- Professionals who can do a pre-inspection to spot issues before they become problems
- Contractors who can make quick, cost-effective repairs
- Photographers who know how to make your home listing look its best
- Title companies and attorneys to handle legal issues and ensure a smooth real estate transaction
These connections speed up the selling process and help avoid costly mistakes. Your agent makes one call to their network, and suddenly your home is seen by dozens of potential buyers.
For informational purposes only. It’s recommended to consult with a licensed real estate professional before proceeding with any real estate transaction.
Is For Sale By Owner Worth It?
When you look at the facts, FSBO sales usually costs more than they save.
You might keep that listing agent’s commission in your pocket. But if your home sells for 13% less (the average difference between FSBO homes and agent-assisted homes sold), you’ve lost far more than you saved.
Add in the stress, time commitment, and potential legal liabilities of handling everything yourself, and most home sellers find that using a real estate agent is the smarter choice.
The bottom line: Using a real estate agent doesn’t just make selling easier—it typically puts more money in your pocket at the end of the day.