When the time comes to move, some tenacious homeowners in Oregon are eager to take over the reins of their home sale and figure out how to sell a house by owner. A house is typically a person’s largest financial asset, and the decision to sell solo is often understandably driven by a desire to save on commission fees and pocket more equity from a hard-earned investment. In recent years, the hot Oregon real estate market and a steep rise in equity added extra incentive to maximize profits. Impulsive home purchases also weren’t unheard of during the pandemic, so maybe you haven’t owned your Oregon home very long and are concerned about covering the cost of selling your house. As the market shifts, you may have new concerns about how much you can get for your home and the amount of your net proceeds. 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). While the method can work for Oregonians, it does come with some risks. Selling a house is a pretty rare event for most people, so you don’t know what you don’t know. In this guide to selling FSBO in Oregon, we’ll cover what can be the most difficult aspects of selling by owner in the Beaver 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. Note: Once you’ve seen what’s required, you can roll up your sleeves and get started with your FSBO sale. Or — in the event you’d prefer to work with a real estate agent — HomeLight would be happy to introduce you to highly-rated professionals in your Oregon market who can help you command top dollar and provide a low-stress selling experience. Disclaimer: While we’ve done our best to research laws, guidelines, or policies for FSBO sales in Oregon, HomeLight always recommends that you look into the local regulations for your area and when in doubt, consult with a legal advisor. 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 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. Next: 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 Oregon, 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, standard title insurance, a conveyance deed, and any transfer taxes. We’ll address what disclosures are required when selling a house in Oregon later in this post. The top three reasons people cite for selling FSBO include: “did not want to pay a commission or fee” (36%); sold to a relative, friend, or neighbor (30%); or that the buyers contacted the seller directly (8%), according to NAR data. To get a firsthand perspective on selling homes in Oregon, we spoke with Jeff Knipe, a top real estate agent serving Portland, Beaverton, and the surrounding area, who sells homes more than 49% quicker than the average area agent. Knipe says the Oregon FSBO sellers he encounters want to save on the real estate agent commission and have more control over the sale. “Maybe some people think nobody knows their home like they do,” he says. “Maybe they have had a bad experience in the past and just didn’t want to use a Realtor or an agent. The main [reason] is the fallacy of thinking they’re going to save money.” However, 2022 data from NAR shows that “FSBO homes sold at a median price of $225,000, significantly lower than the median of agent-assisted homes at $345,000.” This NAR data contrasts the median prices among all FSBO homes (for which we have limited data) against all agent-assisted homes, regardless of distinctions like square footage. However, an independent study from 2016 to 2017 which does adjust for square footage also shows a significant price difference: FSBO homes sold for an average of 5.5% less than agent-marketed sales. As you can see, FSBO is a mixed bag. So, before we share our selling tips, let’s lay out some pros and cons to help you decide if this is the route for you. In spite of the cons, we’ll help you navigate the challenges of FSBO if you’re committed to selling your Oregon house without agent assistance. For some, selling a home FSBO is a challenge worth accepting, and success can be measured in more ways than one. Next, let’s review the FSBO process step by step. Whether you’re selling with an agent or FSBO, at a minimum you’ll want to get your Oregon home into respectable shape before any showings to increase your chances of receiving a fair price. Here are a few standard tasks to add to the list. These efforts will go a long way toward impressing buyers looking for a home in Oregon: “Smells, obviously, are a huge detractor,” Knipe says. Overall, he encourages sellers to think: Less is more. “I always tell people, ‘You’re going to move. Let’s box things up, put things in bins, and get things ready to go.’” Having fewer items on display helps an Oregon home appear more spacious and brighter — a bonus in the cloudy Pacific Northwest, where Portland’s annual precipitation averages about 36 inches. Data from HomeLight’s 2022 Top Agents Insight Report shows that on average, “Buyers will pay 7% more for a house with great curb appeal versus a home with a neglected exterior.” Some important curb appeal upgrades can include: “We don’t get outside a lot here, but when it is, it’s beautiful,” he adds. “You definitely want a spot that you can make your own.” You’ve arrived at a critical moment in your FSBO process: setting a listing price. You don’t want to leave money on the table, yet you want to encourage activity on your listing. Before listing a home, an agent usually conducts a comparative market analysis (CMA). This is a highly-detailed study of “comps” — similar homes nearby that have sold recently, are pending, on the market, or were previously listed but taken off the market. Some may have even been pulled off the market without a sale. More often than not, sellers who go the FSBO route set too high a price, Knipe says. “What your neighbor’s house sold for a few months ago probably isn’t what you’re going to get right now,” he adds. “We may price a house differently based on what the market is.” That can involve scoping out the competition by visiting open houses or pulling up comparative listings, noting those prices, and being honest about whether your home can compete with the condition and features of those properties. Properties in Knipe’s area are “pretty eclectic,” ranging from old bungalows to horse ranches to downtown riverfront condos, so finding comps for your home might be a challenge. Without an agent, you’ll miss out on the complexity of a full CMA and the know-how to interpret it. However, with a little time and money, you can set a competitive price yourself. It’s time to roll up your sleeves and research. As a starting point, look at several online estimators for your home’s value. HomeLight’s Home Value Estimator aggregates publicly available data such as tax records and assessments, your home’s last sale price, and recent sales records for other properties in the same neighborhood. We also add a new layer of information to our estimates using a short questionnaire. Tell us a few details about your Oregon home, such as: Using these insights, we’ll provide you with a preliminary estimate of home value in under two minutes. Whether you use Zillow, Chase, Realtor, or Redfin to get a home value estimate, think of any online home price tool as a first step (not your only source of truth) — and recognize that the data used may be limited. When you’re ready to find comps, you can choose from sites like Zillow, Trulia, Redfin, or Realtor. You’ll want to filter your searches to the area very near your house (within blocks if possible) and with similar characteristics. If you’re not finding any comps, expand your search map. You’ll also want to filter results by details like: Beyond the above criteria, the more houses you find with floor plans and an age similar to yours, the better. As an example, let’s take a look at how to filter your search for comps on Zillow. Just be aware: Zillow has its quirks, too. “I think every seller looks at their Zestimate, but that can be off, especially with a house that’s not cookie-cutter. The tax data that’s in Zillow isn’t always correct,” Knipe says. Agents will look at these online tools so they know what a potential seller thinks their house is worth, but they always do additional research. If you want to further reduce guesswork, top agents recommend paying an appraiser to provide a professional opinion of value for your home. An appraiser will combine recent property data, research of the surrounding market, and information collected from a walkthrough of your home to determine an appraised value. For a single-family home, an appraisal will likely cost $500 to $600 — well worth it to avoid possibly over- or underpricing your house by thousands. Knipe finds appraisals aren’t as important as inspections. “Appraisals tend to start at whatever the purchase price is,” he says, and the report isn’t something you can reuse. Every potential buyer’s lender will order their own appraisal. However, a pre-listing inspection can turn up issues of which you’re unaware, saving you time and money by handling any necessary repairs before a buyer enters the mix. “Two big reasons for ‘sale fails’ are inspections and financing,” Knipe adds. Compare your home’s features against the nearby comps you collected. Hopefully, the houses you studied give an indication of an appropriate price range for your home. From there, you can make dollar adjustments based on characteristics that add value (patios, curb appeal, an extra bedroom) versus detracting from it (a busy street, deferred maintenance, less square footage). Consider the differences and similarities of comps with the appraised value of your home to choose a price that will encourage activity (too high and it may seem out of reach to many buyers) but will also maximize your profit. Listing photos are powerful, either pulling in buyers for showings or keeping them away. To give your listing an edge, consider hiring an experienced real estate photographer. While they may charge as much as $140 to $180 an hour, professional photographers show your home at its best. Knipe also recommends including a 3D tour and a floor plan, if possible, to give potential buyers all the views and information you can. “Buyers aren’t going to be driving around neighborhoods; they’re looking online,” he says. If you have rural property, consider using drone photography, especially during good weather, to show off the acreage and usable outdoor space. If you do go the DIY route, make sure to: Review our guide on how to take quality real estate photos for further guidance. Along with stellar photos, you’ll want to craft an informative and compelling listing. Leverage both the listing description (a paragraph or two highlighting key features) and the property details to show potential buyers all about your home and what makes it desirable. Draw in potential buyers with a powerful listing description that tells a story about your Oregon house, including details like: Be careful about using any phrases that might violate the federal Fair Housing Act, which protects people from discrimination while buying or renting a home, Knipe says. According to the Fair Housing Institute, these might include mentioning a nearby church or synagogue or specifying that your property would be good for “empty nesters” or “singles only.” Instead, lead with a few unique features that you really love about your home and create some mental images, such as a living room view of a lake where you can watch and feed the ducks in the spring. Lastly, and this is crucial: specify in your description whether a buyer’s agent will receive a commission from the proceeds. Most agents don’t want to show their clients properties from which they’d receive no commission. You can decide not to offer a buyer’s agent commission, but recognize that doing so could limit your buyer pool as buyers’ agents typically expect to be compensated for their efforts. Aside from writing the description, you may be prompted to enter information like: Many real estate agents and potential buyers really do read this “fine print” on your listing — so include accurate details, and plenty of them. It’s finally time to post your Oregon home online. While you can create FSBO listings for free on popular search sites, you’d have to painstakingly post site by site, and your listing wouldn’t reach the majority of buyers and agents. To give your home the most exposure, pay to have your home put on your local MLS (multiple listing service) — a platform agents use to share properties with one another as well as major real estate sites. Posting there will feed your listing to buyers’ agent databases and to common sites buyers use. Only licensed real estate agents and brokers who are MLS members can post to the MLS. However, you have two options to gain access: paying an agent to post for you or using a FSBO platform online. While a handful of prospective buyers might drive around a neighborhood to look at For Sale signs, most people look online first — especially in Oregon, where “we get a lot of rain,” Knipe says. “Even going to open houses isn’t what it used to be, which is tough for FSBO sellers because you have to get [your property] out there.” A local agent may be willing to list your house on the MLS for a flat fee, without any other involvement in your real estate transaction. If you decide to go this route, make sure you ask whether the fee includes updating your listing if necessary. There are a variety of paid websites that you can use to list your Oregon house online as “for sale by owner.” These sites offer packages ranging from about $100 to $400 for just a listing, or a larger flat fee of $3,000 to $5,000 that includes any number of additional professional marketing services. Some of these companies display their rates on their websites but others won’t quote a fee until you input your address or select an area of the country. A few examples include: It’s important to note that most of these companies serve FSBO sellers nationwide, which can cause challenges if the assisting representatives don’t understand the local market trends in your Oregon neighborhood. Whatever you choose, read the fine print carefully: some sites may have hidden fees or even take a percentage off your sale — a detour you’d rather avoid on the FSBO route. If you’re determined to save money by foregoing the MLS, creating a free FSBO listing on Zillow might be your top option. You can post videos and unlimited photos, and get fairly wide exposure via Zillow and the Zillow-owned Trulia. Now it’s time to spread the word about your Oregon home. Experienced agents like Knipe know that posting a home on the MLS is just the beginning of the marketing phase. A successful home sale requires a deliberate and targeted marketing plan to reach the right buyers and attract the best offers. Here are some of the steps you can take to market your home: Consider getting a custom yard sign rather than purchasing a generic one you write on with Sharpie. You can order a custom sign on a site like Vistaprint with your contact information, plus a stand, for as little as $25 plus shipping. Note that some MLS providers may have rules about whether you can post a FSBO yard sign while your home is on the MLS. Share your home across social media — and ask your friends to share, too. Try these strategies for a successful open house event: Find more expert tips for how to hold an open house at this link. If your marketing is successful, your next step will be to show the home to prospective buyers. Welcome to the busiest phase of the home sale process. According to Knipe, a major reason some FSBO sellers switch to an agent is that they underestimate the time, energy, and expertise needed to manage this crucial step. “I had a couple who couldn’t get it sold after a month,” he says, then switched to working with an agent. “I’ve also had people who have done FSBO previously who said they would never go through that process again, just because of the headache, the frustration, and the time. One person told me they left money on the table.” To manage the logistics of showings: If you’d rather not be present for every showing, consider using a lock box with a code to let buyers’ agents enter the house. This is standard industry practice among agents. To ensure you’re working with someone legitimate, use Google or sites like arello.com to check their real estate license number. With unrepresented buyers, plan to be on the property for the showing. During a showing, we recommend you: You’ve got your first offer — congratulations! Before signing anything, Knipe says to do your due diligence. “There are a lot of scams out there.” Here are key considerations when considering an offer on your Oregon home: In Oregon, a residential property seller is generally required to disclose the condition of the home to the buyer. The form required by state law covers everything from lead-based paint to soil issues to building permits. Whether required by law or not, some sellers may prefer to provide the disclosures before an offer has even been presented so that a prospective buyer is more informed beforehand and less likely to withdraw from a deal later on. In an agent-assisted sale, your listing agent would likely provide you with the required disclosure form(s). However, as a FSBO seller, you can find the form online. What will you be asked? In Oregon, you can expect to disclose any significant defects or issues you’re aware of concerning: If in doubt about a problem with the home’s condition, most top real estate agents would recommend you disclose it. If you know of an issue and choose not to disclose a major problem, and that defect is later discovered, you could be held liable for damage or subsequent costs. Time to button up that deal. While some states require that FSBO sellers hire a real estate lawyer to help close their sale, Oregon does not. However, it’s still a good idea to invest in the services of an experienced attorney as you close one of the biggest and most complex deals of your life. By doing so, you’ll minimize your legal and financial risk, plus simplify the process for yourself. Real estate attorney fees can vary depending on location and how much help you want or need. In Oregon, they generally range from $100 and $400 per hour, although some highly experienced attorneys may charge as much as $1,000, depending on a case’s complexity — well worth it for professional guidance in closing one of life’s largest legal transactions. On your FSBO journey, watch out for these major pitfalls: “You’re emotional about your home,” and understandably so, Knipe says. While that often equates to thinking your home is worth more than it is, emotions also can make negotiations difficult — another reason it’s wise to have an impartial professional on your side. If you decide you don’t want the hassle or pressure of FSBO, you’ve got other solid options. Ultimately, the services and price gains you can get with an experienced real estate agent may put more money in your pocket than FSBO. A proven agent is also better equipped to help you achieve your selling and moving timelines. If you’re still on the fence about working with an agent, talk with one in your area about the FSBO process in detail. “I think it’s always a good idea to meet with agents to understand the process to see if you’re up for it. As a seller, you’ve got to make sure you’re prepared. Typically, when you’re just saving the listing commission, it’s usually not worth it,” Knipe says. “A lot of people think it’s easy to sell a house or to buy a house until you do it,” he adds. “Our job is to make it easy. That’s because I handle all the details. There’s a reason we work more than full-time.” Interested in such expertise? HomeLight can connect you to top-performing agents in your Oregon market. Our free tool analyzes over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs. It takes only two minutes to receive your matches. If you’d like to skip the sale prep altogether — plus avoid paying agent commissions — you can opt to sell your home “as-is” to an all-cash buyer instead. For a low-stress experience, consider requesting a cash offer from HomeLight’s Simple Sale platform. Tell us a few details about your home, and in as few as 72 hours, we’ll send a no-obligation all-cash offer your way. If you decide to accept the offer, Simple Sale sellers have the ability to close in as little as 10 days. Without leaving the Simple Sale platform, you’ll also be able to compare your cash offer to an estimation of what your home would sell for on the open market so you can make an informed decision. Unless you already have a buyer lined up, selling a house by owner in Oregon requires a significant investment of time and effort. You’ll need to pull your own comps, capture excellent pictures, create a listing, market the house online, field inquiries, host showings, negotiate, and close the deal. And that’s after preparing the house itself. You also have to consider that FSBO listings tend to sell for less than agent-assisted sales. An experienced agent who knows the area can make recommendations for targeted upgrades to help you maximize your sale price and get a premium offer. This can help to offset or, in some cases, more than make up for the cost of commission — while saving you time and headaches. If you choose to go FSBO, you should have a good idea now of what to expect from the process. Otherwise, our internal transaction data at HomeLight shows that the top 5% of real estate agents sell homes for as much as 10% more than average, and we’d be happy to introduce you to some of the best agents in your Oregon market. Header Image Source: (Atanas Malamov / Unsplash)How does selling by owner (FSBO) work in Oregon?
Maybe some people think nobody knows their home like they do. Maybe they have had a bad experience in the past and just didn’t want to use a Realtor or an agent. The main [reason] is the fallacy of thinking they’re going to save money.
Why sell a house by owner in Oregon?
Pros of selling a house by owner
Cons of selling a house by owner
Steps to sell a house by owner
1. Prepare your house for sale
Indoors
Outdoors
2. Do the homework necessary to set a competitive price
Conduct your own “CMA Lite”
Start with an online home value estimate
Narrowly filter your search for comps
Use a site like Zillow to collect your data
Invest in an appraisal or inspection
Make sense of the research
3. Photograph your home
4. Create a detailed, compelling listing
Tell a story with your description
Don’t skimp on the property details
5. List your home online
Pay an agent to list your home on the MLS
Use a FSBO platform with an MLS option
Not willing to pay for the MLS?
6. Market your home
Place a nice FSBO sign by the road
Share on social media
Hold an open house
7. Manage showings
Should you be present for showings?
8. Evaluate offers, negotiate a deal, and make disclosures
Property condition disclosure
9. Close the sale — with professional help
FSBO mistakes to avoid in Oregon
Alternatives to selling by owner in Oregon
Enlist the help of a top-rated real estate agent
Request a cash offer to buy your Oregon home
Ready to sell your Oregon home?
