If you’re considering selling your house “for sale by owner” (FSBO), you probably think now is as good a time as any in history to give it a try.
After all, technology has made it easier to market your house to potential buyers in the market, and there’s a shortage of houses for sale. So how difficult could it be to sell your house on your own?
Apparently not that easy…
Some percentage of homeowners try to sell their house FSBO every year, usually in an attempt to try and save money on commissions. But even though it’s supposedly gotten easier to sell a house, fewer sellers are attempting to do it as each year passes.
According to the 2024 Profile of Home Buyers and Sellers from the National Association of REALTORS®, FSBOs dropped to an all-time low of 6% of all home sales in the past year, and there’s been a downward trend over the last 40 years. FSBO sales accounted for up to 21% of home sales back in 1985, but have decreased each year since and have been in the single digits since 2010.
What Makes Selling FSBO So Difficult?
In reality, selling a home isn’t quite as simple as putting up a “For Sale” sign in your yard, and waiting for buyers to pour in. From pricing and marketing to negotiations and paperwork, selling a home involves much more than just finding a buyer.
But even if you have a handle on every aspect and nuance of selling a home, one thing you can’t easily overcome is how buyers think, feel, and act. And unfortunately for FSBO sellers, many buyers are hesitant to consider their properties because they’re concerned about dealing directly with the owner. Here are some reasons why:
- Buyers don’t trust FSBOs – Another recent survey found that 43% of FSBOs said buyers simply didn’t trust them because they weren’t represented by an agent. Buyers often wonder why a seller might be choosing to go FSBO. Concerns about undisclosed issues, incomplete paperwork, or even potential discrimination can arise, especially since agents are bound by ethical and legal obligations to disclose certain information that an unrepresented seller may not.
- Many buyers want an agent representing them – Just because you’re comfortable trying to represent yourself, that doesn’t mean your ideal buyer is. Buyers often prefer to work with a real estate agent because they not only provide them access to a broad range of listings, but also valuable assistance with paperwork, negotiations, and the inspection process. Most importantly, an agent provides a layer of detachment and negotiation expertise that makes buyers feel secure.
- It’s less awkward if they don’t like your house – Even before wanting a buffer between themselves and a seller during negotiations, many buyers like having some space between themselves and the seller just to take a look at a house. Many buyers may avoid scheduling an appointment to see a house directly with an owner because they feel it may be awkward if they don’t like the house. Viewing a home with an agent means they can be honest about their thoughts without the potential awkwardness of sharing them directly with the seller.
- It’s often difficult to even schedule a showing with a FSBO – Looking at homes listed by real estate agents makes it easy for buyers to schedule showings at a time that is convenient for them. Many buyers avoid the hassle of having to contact the seller directly, trying to arrange a mutually convenient time, and dealing with any schedule conflicts.
- They may just be afraid of going into a stranger’s house – No matter how accommodating and friendly you might be, many potential buyers may just feel concerned for their safety agreeing to enter a stranger’s home without a third party involved.
Those are just a few reasons that FSBOs generally attract a much smaller pool of buyers than homes listed with an agent. So if you’re considering trying to sell your own home, be aware that you’re limiting yourself to buyers who are comfortable buying a home directly from an owner.
If you want to expose your home to the largest possible pool of buyers and sell your house quickly and for the most money possible, your best bet is to list your home with a real estate agent.
The Takeaway:
While selling your home “for sale by owner” (FSBO) might seem tempting to save on commission, it often comes with challenges that limit buyer interest. From trust issues and scheduling hassles to buyer discomfort with unrepresented sales, FSBO properties tend to draw a smaller buyer pool. If you want to maximize your exposure and sale price, working with a real estate agent is most likely going to outweigh any potential savings you’re hoping for.