If you’re thinking about selling your home yourself, the potential savings on Realtor fees might seem like a big win. After all, why pay someone else to do what you believe you can handle on your own? But you may be on the FSBO fence because you’ve heard that homes sold “For Sale By Owner” often sell for less money. But just how much less do FSBO homes sell for? In this post, we’ll explore the numbers and factors that contribute to the lower sale prices typically seen with FSBO homes. We’ll also share expert insights from two top real estate agents to help you decide if it’s worth the trade-off in your selling situation.
When selling your home, the potential to save on agent commissions can be tempting, but it’s important to weigh that against the possible decrease in your home’s sale price. According to the National Association of Realtors (NAR), FSBO homes sold for a median price of $310,000 last year. In contrast, homes sold with the assistance of a real estate agent had a median sale price of $405,000. That’s a difference of $95,000 or about 23.5% less for FSBO sales. “A lot of times, FSBO sellers put the house up for sale, and when they’re not getting the traffic on the property or offers coming in, they start to get frustrated and lower the price,” explains Joel Freis, a top-rated Florida agent with more than 20 years of experience. “They end up taking less than what the home is probably worth, but it just wasn’t marketed properly.” This disparity in sale price highlights a critical point: while you might save 3% to 6% on Realtor fees, you could be leaving far more money on the table by selling your home yourself. The professional expertise and market reach that a real estate agent offers often result in a significantly higher sale price, more than covering the cost of their commission. Using NAR’s estimate of 23.5% less proceeds, let’s look at a table that shows how a FSBO sale might compare to an agent-assisted sale at different selling price points:How much less do FSBO homes sell for?
FSBO vs. Realtor selling price examples
FSBO sale price
Agent sale price (+23.5%)
Potential gain in proceeds
$152,000
$200,000
$47,000
$229,500
$300,000
$70,500
$306,000
$400,000
$94,000
$382,500
$500,000
$117,500
$459,000
$600,000
$141,000
$535,500
$700,000
$164,500
$612,000
$800,000
$188,000
$688,500
$900,000
$211,500
$765,000
$1,000,000
$235,000
$1,147,500
$1,500,000
$352,500
