When the time comes to move, some tenacious homeowners in Missouri are eager to take over the reins of their home sale and figure out how to sell a house by owner. With millions of homes sold each year, a modest portion of sellers — about 7% in 2021 and 10% in 2022 — choose to list “For Sale By Owner” (or FSBO — pronounced fizz-bow). Of those, 50% already knew the buyer of the home, according to data from the National Association of Realtors (NAR). In this guide to selling FSBO in Missouri, we’ll cover what can be the most difficult aspects of selling by owner in the Show Me State, including the steps that might be harder than you think. We’ll also provide a comprehensive overview of the full process to prep, market, and close on your home without the assistance of a real estate agent. FSBO is a method of selling your home without the involvement of a listing agent. In a FSBO scenario, the seller assumes the responsibilities that would normally fall to their agent, such as pricing the home, marketing it to potential buyers, arranging showings, and negotiating the deal. In an agent-assisted sale, the seller typically pays a commission amounting to around 6% of the sale price, which is then most often split 50/50 with the buyer’s agent. That 6% is deducted from the seller’s proceeds at closing. By selling FSBO, a seller can eliminate the cost of the listing agent’s commission (so around 3%), though they may still need to offer a buyer’s agent commission. Buyers’ agents will expect compensation for the work they do to bring a buyer to a sale, such as arranging showings and helping to tee up and qualify the buyer. Plus, when a seller isn’t working with an agent, the buyer’s agent may end up carrying more of the weight to get the deal to the finish line. Consult our guide on who pays closing costs when selling a house by owner for more details. Finally, a FSBO sale does not mean that a seller won’t need any professional assistance. In Missouri, sellers are not required to hire a real estate attorney, but FSBO sales typically warrant legal and professional oversight of some kind to avoid an abundance of legal risk. Most people who sell by owner will need to hire an attorney to review and prepare key documents and make sure paperwork is filled out properly, such as the seller’s disclosures. We’ll address what disclosures are required when selling a house in Missouri later in this post.How does selling by owner (FSBO) work in Missouri?
