Is FSBO Worth It for Home Sellers?

"The key trade-off is whether those savings are enough to offset the extra work, potential legal risks, and the possibility of selling your home for less than an agent could have achieved. In this Redfin real estate article, we will explain if FSBO is worth it (and when it is not) to help you make the best decision as you prepare to sell your home in Kansas City or Salt Lake City ."

"To determine is FSBO worth it , you need to understand the financial savings. The primary motivation for a f or- s ale-by-owner transaction is financial. By choosing not to hire a listing agent, you avoid paying their commission, which typically ranges from 5-6% of the sale price. For example, on a $500,000 home, this could mean saving $25,000 to $30,000. The financial picture often includes these costs, regardless of FSBO or agent: Buyer's agent commission (typically 2.5% to 3%) Closing costs (e.g., transfer taxes, title insurance)"

"Pricing: FSBO homes are often priced incorrectly. An agent uses comparable sales data (comps) and market expertise to set a strategic price. Underpricing means leaving money on the table, and overpricing leads to long listing times. Negotiation: You will handle all negotiations with the buyer's agent or the buyer directly. This includes the initial offer, repairs, and credits after the inspection. Professional negotiators often secure a better final price and terms."

FSBO can eliminate the listing agent's 5–6% commission, potentially saving tens of thousands on a typical home sale. Net savings must account for buyer's agent commission, closing costs, marketing, and staging. Sellers who go FSBO assume responsibilities for pricing, marketing, showings, negotiations, inspections, repairs, and legal paperwork. Incorrect pricing risks undercutting proceeds or extending time on market, while inexperienced negotiation can reduce final sale price. The decision depends on seller experience, local market conditions, and available time to manage the sale and associated risks.

Read at Redfin | Real Estate Tips for Home Buying, Selling & More