FSBO vs Using a Realtor: An Honest Cost-Benefit Analysis

by Ryan Rose

Selling For Sale By Owner (FSBO) saves the listing agent's commission (typically 2.5-3%)—but NAR data shows FSBO homes sell for median prices significantly below agent-listed homes, raising the question of whether commission savings are real savings. This guide provides an honest analysis of both options.

The Commission Math

*Most FSBO sellers still offer buyer's agent commission to access MLS and agent-represented buyers. FSBO savings: $15,000 on paper.

The Price Reality

According to NAR research, FSBO homes sell for median prices approximately 10-15% lower than agent-assisted sales. On a $500,000 home, that's $50,000-$75,000 less. Even accounting for commission savings, many FSBO sellers net less than they would with an agent. Why? Pricing mistakes, limited exposure, weaker negotiating position, and presentation issues.

What Agents Actually Provide

Pricing Expertise

Agents access MLS data showing actual sold prices (not asking prices), pending sales, market trends, and neighborhood-specific factors. Overpricing is the most common FSBO mistake—it costs time and money.

Marketing and Exposure

MLS syndication reaches Zillow, Realtor.com, Redfin, and hundreds of sites. Professional photography. Virtual tours. Social media advertising. Agent network marketing. FSBO sellers can access some of these but often with less effectiveness.

Showing Management

Agents coordinate showings, provide lockbox access, and handle scheduling. FSBO sellers must be available for every showing, which many buyers and agents find inconvenient.

Negotiation

Agents negotiate daily and understand tactics, market leverage, and contract terms. FSBO sellers negotiate emotionally with their home on the line. Experienced buyer's agents often outmaneuver FSBO sellers.

Transaction Management

Contracts, disclosures, inspection negotiations, appraisal issues, title problems, closing coordination—agents handle these daily. FSBO sellers navigate unfamiliar territory where mistakes can be costly or kill deals.

When FSBO Can Work

Already have a buyer: Selling to family, friend, or neighbor eliminates marketing need. Real estate experience: You're an agent, attorney, or have sold multiple properties. Time and flexibility: You can handle showings, calls, and paperwork. Hot market: In strong seller's markets, even poorly marketed homes sell. Willing to price aggressively: If you price below market, buyers come regardless of marketing.

When FSBO Usually Fails

No real estate experience: The learning curve is steep and mistakes are expensive. Limited time: Showing coordination and buyer communication take significant time. Emotional attachment: Negotiating your own home sale while living there is emotionally difficult. Balanced or buyer's market: When competition is fierce, professional marketing matters more.

The Hybrid Option

Some sellers try FSBO first, then list with an agent if unsuccessful. The risk: time on market creates stigma, and you may start with an agent at a disadvantage. If considering this, set a firm FSBO deadline (30 days) before listing with an agent.

The Bottom Line

FSBO saves commission but typically costs more in lower sale price. For most sellers, agent representation nets more money even after commission. The exception: if you have real estate experience, time, and a hot market, FSBO can work. I'm happy to discuss your specific situation and provide an honest assessment of your options.

Ready to find your Las Vegas home? Call or text Ryan Rose at 702-747-5921 for personalized guidance.

FSBO vs Realtor: Frequently Asked Questions About Home Selling Costs

Q1: How much money do I actually save by selling FSBO?

While you save the listing agent's commission (typically 2.5-3%), you'll likely still pay the buyer's agent commission to access MLS and agent-represented buyers. On a $500,000 home, you'd save approximately $15,000 in commission. However, NAR data shows FSBO homes typically sell for 10-15% less than agent-listed homes, which could mean $50,000-$75,000 less on that same property—potentially resulting in a net loss even after commission savings.

Q2: Why do FSBO homes sell for lower prices?

FSBO homes typically sell for less due to several factors: pricing mistakes from lack of access to comprehensive market data, limited exposure without full MLS syndication and professional marketing, weaker negotiating positions when facing experienced buyer's agents, and presentation issues without professional photography and staging advice. These factors compound to reduce the final sale price significantly.

Q3: Can I still list my FSBO home on the MLS?

Yes, but with limitations. Most FSBO sellers offer a buyer's agent commission (typically 2.5%) to get their property listed on the MLS, which then syndicates to major sites like Zillow, Realtor.com, and Redfin. Some flat-fee MLS services exist, but you'll handle all inquiries, showings, and negotiations yourself while still paying the buyer's agent commission.

Q4: When does selling FSBO make sense?

FSBO works best when you: already have a buyer (family, friend, or neighbor), have real estate experience yourself (agent, attorney, or multiple property sales), have significant time and flexibility for showings and paperwork, are in a hot seller's market where homes sell quickly regardless of marketing, or are willing to price aggressively below market value to attract buyers without professional marketing.

Q5: What are the biggest challenges FSBO sellers face?

The main challenges include: pricing the home accurately without access to comprehensive sold data, managing showings while maintaining your daily schedule, negotiating emotionally with your own home on the line against experienced buyer's agents, handling complex transaction management including contracts, disclosures, inspections, appraisals, and title issues, and achieving the marketing reach that MLS syndication and agent networks provide.

Q6: Should I try FSBO first and then list with an agent if it doesn't work?

This hybrid approach carries risk. Extended time on market creates stigma that suggests something is wrong with the property, and you may start your agent listing at a disadvantage with stale exposure. If you choose this path, set a firm FSBO deadline of 30 days maximum before transitioning to an agent to minimize the negative market perception.

Q7: What specific services do real estate agents provide that justify their commission?

Agents provide: pricing expertise using comprehensive MLS data of actual sold prices and market trends, professional marketing including photography, virtual tours, and syndication to hundreds of websites, showing management and coordination, experienced negotiation tactics that maximize your sale price, and transaction management handling contracts, disclosures, inspections, appraisals, title issues, and closing coordination—services that typically result in higher net proceeds even after commission.

Q8: How much time does selling FSBO actually require?

Selling FSBO is essentially a part-time job. You'll need to: respond to buyer inquiries promptly (often evenings and weekends), be available for showings on buyers' schedules, research and prepare all legal documents and disclosures, coordinate with inspectors, appraisers, title companies, and potentially attorneys, and negotiate directly with buyers and their agents. Most FSBO sellers underestimate this time commitment, which can span several weeks to months.

Q9: Do I still need to pay a buyer's agent if I sell FSBO?

While not legally required, approximately 90% of buyers use agents, so refusing to pay a buyer's agent commission severely limits your buyer pool. Most FSBO sellers offer the standard 2.5% buyer's agent commission to access agent-represented buyers and gain MLS exposure. This means your actual commission savings is only the listing agent's fee, not the full 5-6% commission.

Q10: What's the bottom line—should I sell FSBO or use a realtor?

For most sellers, using a realtor nets more money even after commission because professionally marketed homes typically sell for significantly higher prices. FSBO makes sense primarily if you have real estate experience, substantial available time, already have a buyer, or are in an exceptionally hot market. The commission you save often costs more in reduced sale price, making agent representation the more profitable choice for the majority of home sellers.