For Sale By Owner Pro Tips

Selling Your Home By Owner: A Comprehensive Guide for Home Sellers

If you’re considering selling your home without the help of a real estate agent, you’re not alone. In fact, I got my feet wet in Real Estate before getting my license by selling my own home myself. It was a challenge that I wanted to accomplish and I ultimately pulled it off! Little did I know that I truly would love the world of selling real estate and that it would be my career choice a few years later.

Many homeowners decide to take the “For Sale By Owner” (FSBO) route. The main reason owners cite for doing this is to save on commission fees and have more control over the process. This was my reason too. However, selling a home by owner is not without its challenges, especially in today’s current market. This isn’t 2020-2021 anymore where just throwing a for sale sign up and listing your home on Zillow brings the buyers marching in!

In this article, I’ll break down everything you need to know to successfully sell your home on your own, including the pros and cons, and the steps you’ll need to take.

What is FSBO (For Sale By Owner)?

FSBO stands for “For Sale By Owner,” which means you’re selling your property without a real estate agent. Instead of listing your home with an agent who would handle most aspects of the sale, you take on the responsibility of marketing, negotiating, and closing the deal yourself.

Pros of Selling Your Home By Owner

1. Save on Commission Fees
   The number one reason homeowners choose FSBO is to avoid paying the commission fees that typically go to real estate agents. Instead of paying 5-6% of the sale price, you pocket that money. Of course some things to consider here are the costs that Real Estate Agents generally absorb like marketing costs will come off your bottom line, and some sellers still offer a buyer’s agent commission for bringing a buyer which can cost between 1-3%.

2. Control Over the Sale Process
   You will be in charge of every aspect of the sale—from setting the price to negotiating offers and scheduling showings. This gives you full control over your timeline and strategy.

3. Personalized Marketing
   By selling on your own, you can focus on marketing the unique features of your home in the way you see fit. Whether it’s creating a custom listing or hosting your own open house, you have flexibility in how to showcase your home.

4. Direct Communication with Buyers
   Without an agent as the middleman, you can communicate directly with potential buyers. This may lead to a quicker negotiation process and a more personalized experience.

Cons of Selling Your Home By Owner

1. Time and Effort
   Selling a home takes a lot of work—marketing, handling inquiries, scheduling showings, and negotiating offers. When you don’t have an agent, this becomes your responsibility. It can be especially time-consuming if you’re balancing other work or personal commitments. Some people are built to handle this kind of work, and others may not be. You will need to know your strengths and weaknesses and what you are willing to take on.

2. Limited Market Exposure
   One downside of FSBO is that you may have limited exposure to potential buyers. Real estate agents typically have access to multiple listing services (MLS), which give your home visibility across a broad network of agents and buyers. In addition to the MLS, there are other mediums that brokers have access to that can reach a broader audience, especially if your home is in the luxury category. There are exclusive listing sites that reach targeted buyers outside of the MLS state-wide, country-wide and even internationally. As an FSBO seller, you won’t have that same level of access unless you pay for an MLS listing yourself.

3. Pricing Challenges
   Setting the right price for your home can be difficult. Again, some sellers may have better insight into how to price a home than others. A real estate agent will have the expertise to price your home competitively, based on comparable sales data and market conditions. As a seller, overpricing or underpricing your home can lead to missed opportunities or a longer time on the market.

4. Negotiation Hurdles
   When negotiating, you may encounter situations that require expertise in handling buyer objections, contract terms, and contingencies. Real estate agents have experience navigating these conversations and can help you secure the best deal with a full spectrum of options to how you can negotiate. As a FSBO seller, you’ll need to be prepared to manage these negotiations on your own.

5. Legal and Contractual Risks
   Selling a home involves navigating complex legal paperwork. Without an agent, you may risk missing important steps or making mistakes that could jeopardize the sale or leave you legally exposed. If you’re unfamiliar with the necessary contracts or regulations, you might want to consult a lawyer to avoid pitfalls. 

Steps to Sell Your Home By Owner

1. Prepare Your Home for Sale

   • Clean and Declutter: First impressions matter, especially in this current market. Clean and stage your home to make it appealing to buyers. This could mean fresh paint, landscaping, or simply tidying up the space. Consider moving a lot of your items out of your home before listing.

   • Make Necessary Repairs: Fix any obvious issues that could deter potential buyers, like broken windows, leaky faucets, or cracked flooring. You can also hire a third party home inspector to come do a pre-list inspection that will give you a breakdown of what a buyer might find when you go under contract. 

2. Determine the Right Price

   • Research comparable homes in your neighborhood, or consider hiring an appraiser to determine your home’s value. Pricing too high could turn away buyers, while pricing too low might leave money on the table.

3. Market Your Home

   • Create a Listing: Write a compelling listing description highlighting your home’s features, including photos, room sizes, amenities, and unique selling points.

   • Get Professional Photos and Videos: You’ll want to have high quality, staged pictures done of the inside and outside of your home. Videos also make for great advertising, especially aerial drone videos to show the surrounding areas. Consider hiring a professional photographer and videographer to do this part for you. Generally an agent is covering these costs.

   • Online & Print Media: You can list your home on websites like Zillow, Craigslist, and Facebook Marketplace for free. You can also consider paying to list on the MLS through a flat-fee MLS service. Additional print marketing that is usually done by Real Estate Agents includes direct mailers, property fliers to provide buyers that come in to view your home, and signage for the outside of your home.

   • Host Open Houses: Open houses are a great way to attract multiple buyers at once and get direct feedback about your property. You can advertise your open house on the platforms you use to list your home. Be sure to put out several open house signs on all the major roadways leading to your home and make sure the house is presentable. 

4. Schedule Showings

   • Once your home is listed, you’ll need to be available to show it to interested buyers. Be prepared to accommodate different schedules and have your home ready to impress.

5. Negotiate Offers

   • Buyers will make offers on your home, and you’ll need to decide if you want to accept, decline, or counter. Make sure you understand the terms of each offer, including contingencies, closing costs, and the buyer’s financial qualifications.

6. Handle the Paperwork

   • Once you accept an offer, you’ll need to draw up a sales contract. This is a crucial step that requires attention to detail. You can use an attorney or an online service to ensure everything is done correctly. You will also need to work with a title company to ensure the title is clear for transfer.

7. Close the Sale

   • The closing process involves signing the deed, transferring ownership, and receiving the payment from the buyer. You’ll also pay any closing costs, and the buyer will receive the keys.

FSBO vs. Using a Realtor

Before making your decision, it’s important to weigh your comfort level with handling these steps on your own. Many sellers appreciate the expertise and support of a licensed Realtor, while others enjoy the challenge and autonomy of going solo. Consider whether you’re prepared to invest the time, energy, and research necessary to make your FSBO sale successful.

Final Thoughts

Selling your home by owner can be a rewarding experience if you’re prepared to handle the process. While the potential savings on commission are attractive, FSBO requires a lot of time, effort, and attention to detail. If you’re willing to put in the work and are comfortable with the risks, FSBO could be the right choice for you.

If you’d like more information or need professional assistance in selling your home, feel free to contact me. Whether you’re considering FSBO or just need some expert advice, I’m here to help simplify the process.

FSBO Resources:

• Zillow FSBO Guide

• Redfin FSBO Tips

• FSBO Contract Templates