FSBO accounted for 7% of the total home sales in 2023. Not only that, 55% of millennials feel comfortable selling their homes themselves. For Sale By Owner (FSBO) means selling your home without the help of a real estate agent.
Saving money is the primary motivator for sellers when selling a house by owner. You can save up to $12,000 in commission on average by selling your home through FSBO.
With high-tech FSBO websites like Houzeo, you can list your home on the MLS. This gives you maximum exposure to buyers and agents. You also get Houzeo’s dedicated customer service and advanced tech to manage your home sale.
How Does For Sale By Owner Work?
Selling For Sale By Owner means taking on the responsibilities of the listing agent. Here is what the typical process of FSBO looks like:
- Research & Pricing: Start by looking for real estate comps in your neighborhood to get a general idea of the home’s value. You have to set a fair asking price for your house.
- Marketing & Exposure: Once the asking price is fixed, you can start looking for buyers. Hire a professional home stager, host open houses, and put up a yard sign to market your home.
- Negotiation: After marketing comes the negotiation of terms and conditions. You can hire a real estate attorney to ensure your best interests are represented in the contract.
- Paperwork: You have to write your own FSBO contract with the help of an attorney and notarize it.
- Closing: Finally, you can accept the offer and begin the closing process which typically takes 30-45 days after accepting the offer.
Pros and Cons of FSBO
Going purely FSBO gives you complete control over the home-selling process. Here are the pros and cons of FSBO:
✅Pros
- Cost Savings: You don’t need to pay the listing agent’s commission as you hire no agent.
- Control Over The Sale: You have complete control over the entire process, from setting the price to negotiating offers and closing the deal.
- Flexibility: You can schedule showings and open houses at times that are most convenient for you.
❌Cons
- Time & Effort: You are the sole person responsible for marketing your house, and drafting the listing paperwork. Your property’s days on sale could increase if you don’t market it methodically.
- Negotiation: Negotiating offers is a tough game, especially when your buyer has an agent. That’s why you need to know how to navigate your home sale transaction so that it benefits you.
- Buyer Agent Commission: You still have to pay the buyer agent’s commission which amounts to 3% of the property’s sale price.
Where Can I List My Home For Sale By Owner?
You can list your house on FSBO sites like Houzeo, Fizber, and Flat MLS Fee Realty. There are 2 types of websites where you can list your home For Sale By Owner:
- Paid FSBO Websites: All paid FSBO sites will get you listed on the MLS – the most powerful marketing tool for home sellers. MLS distributes your listings to Zillow, Redfin, Trulia, Realtor.com, and 100s of other websites.
- Free FSBO Websites: Free FSBO sites will limit your listing exposure to just those websites. No MLS exposure means less competition for your property, and thus a lower sale price for you.
How Much Does It Cost to Sell a House by Owner?
A For Sale By Owner transaction includes multiple costs such as:
- Photography: Homes photographed by a professional sell 32% faster. The cost of professional photography ranges from $110 to $300.
- Marketing: Selling a property is all about getting it seen by potential buyers. This includes putting up a yard sign which typically costs $20-$50, and online ads.
- FSBO MLS Listing: Homes listed on the MLS sold 17% faster than those not on the MLS. If you opt for a Flat Fee MLS service, the price lies between $399 and $449.
- Sales Contract: Getting the FSBO contract reviewed by a real estate attorney will cost around $300 to $500. This will prevent any unwanted legal issues.
Bottom Line
FSBO is a suitable option for sellers who are comfortable with a hands-on approach and prioritize some cost savings. You can supplement FSBO with an MLS listing and save thousands on Realtor commissions.
You can get your FSBO home on the MLS with Houzeo within 24-48 hours. Houzeo also provides dedicated customer support to help you at every step of the sale process.
Eager to Know How Houzeo Works?
We’ve got you covered. Check out the following video to understand how Houzeo works and why it is one of the best For Sale By Owner websites in the U.S.
» Still Confused? Read this exclusive Houzeo review and learn why the platform is the best in America’s competitive housing market.
Frequently Asked Questions
What does FSBO mean in real estate?
For Sale By Owner (FSBO) means selling your home by yourself without the help of a Realtor. For the paperwork or documentation, you are assisted by a platform such as Houzeo to list your home on the MLS during this process.
How do you market a For Sale By Owner home?
There are different ways you can market your homes such as staging your home, putting up yard signs, and organizing open houses, etc.
What are the advantages of FSBO?
Selling your home as FSBO saves you on commission fees and gives you complete control over the process. You can communicate directly with buyers and schedule showings at your convenience.
