For Sale by Owner: What Are the Pros and Cons?

When selling a home, most people go 1 of 2 routes: hiring a real estate agent or selling the home themselves. This latter option, known as “For Sale By Owner,” or FSBO, can certainly sound appealing, but it’s important that you weigh the pros and the cons of this option before putting up that FSBO sign in your yard. Keep reading to learn more about both the benefits and the drawbacks of selling your home on your own.

The Pros

The primary—and likely most appealing—benefit of the FSBO route is that you get to save on commission fees. Real estate agents typically charge around 5-6% of the sale price as a commission, which can add up to a significant amount of money (especially because, as the seller, you’ll likely be asked to pay the commission for your own agent as well as the buyer’s agent). If you choose to sell your home on your own, you’ll save yourself the commission fees of your own real estate agent, even if you still have to pay the commission fees for your buyer’s agent.

Additionally, FSBO gives you more complete control over the sale. You set the price, schedule the showings, and decide how to market your home. You can negotiate directly with potential buyers instead of using a real estate agent as a middleman, and make decisions about selling without worrying about any pressure from an agent.

The Cons

The truth is, selling a home is often more complex than people realize. It can be a very time-consuming process; it takes a lot more than just putting up a sign in your yard. You’ll need to handle marketing, coordinate showings, communicate with potential buyers, and manage paperwork. Without an agent, these responsibilities fall entirely on your shoulders, and it can quickly become overwhelming.

You’ll also be limiting your market exposure by selling on your own. Real estate agents have access to multiple listing services (MLS) and professional networks that can give your home more visibility on the market. Doing it yourself, you’re unlikely to reach as many potential buyers. This means your home will likely be on the market for longer.

The Bottom Line

Ultimately, it’s important to remember that, while the FSBO route may save you a commission fee, it might not actually give you that much more money in your pocket. Several studies and market analyses have shown that FSBO properties often sell for less than agent-assisted sales. So it’s important to ask yourself whether or not saving 5-6% of your sale price is worth the extra headache when you may end up getting less for your home when you finally sell it.

If you want to sell your house in Overland Park, working with a real estate agent is typically the better option.