For sale by owner (FSBO) refers to the process of selling a home without a real estate agent. While the vast majority of American home sellers work with a realtor to sell their homes, a minority are willing to put in the time and effort necessary to go it alone.
Most FSBO sellers are driven by a desire to save money on real estate agent commission. But studies show that most don't actually save money: FSBO homes on average sell for about $55,000 less than those sold with a realtor's help.[1]
Another motive for FSBO sellers is fast sales. Since about half of FSBO sellers already know their buyer and don't have to waste time marketing their home, selling FSBO means a transaction can close faster.
Want to see what other FSBO statistics say? Read on for more facts and figures about the FSBO market that can help you decide if this is the right option for you.
If you’re trying to save money on realtor commission fees, a discount real estate agent may be a better option than choosing FSBO. Selling a house yourself is complicated and risky, and the price you achieve may be much less than what you can get with an agent. Real Estate Witch can match you with full-service realtors who charge less.
JUMP TO:
- Statistics on FSBO popularity
- FSBO vs. realtor sale prices
- FSBO seller motives
- Pricing strategies
- Marketing strategies
- How long it takes to sell FSBO
- Biggest challenges
- Is FSBO right for you?
Statistics on FSBO popularity
- The FSBO market share hit an all-time low of 6% in 2024[2]
- For detached single-family homes, FSBOs account for just 5%
(Source: National Association of Realtors)
For sale by owner accounts for a small percentage of home sales. FSBO sellers represented 6% of all home sales in 2024, according to a large annual survey by the National Association of Realtors (NAR).[2]
That rate is even lower when looking exclusively at detached single-family homes. Just 5% of all detached single-family homes sold last year were done so with an unrepresented seller.
It appears that the growing complexity of real estate transactions and the rise of low-commission real estate are chipping away at the popularity of FSBO. Since there are other ways to save time and money on a transaction, selling FSBO might not be ideal for inexperienced home sellers to try.
Statistics on FSBO vs. realtor sale prices
- FSBO homes sold for an average of nearly 15% less than comparable homes listed on the MLS.
- Sellers who use an agent are 43% more likely to be happy with the home’s selling price than FSBO sellers.
(Sources: National Association of Realtors, Clever Real Estate)
Research indicates that homes sold FSBO typically fetch lower prices than those sold with the assistance of a real estate agent. FSBO properties are less likely to exceed their listed prices, often selling for about $55,000 less than homes sold via a realtor.[1]
A study conducted by the low-commission real estate company Clever Real Estate reveals that properties sold through agents generate an average profit of $207,500 for their owners, which is $79,000 more than the average profit of $128,500 from homes sold without an agent's help.
Moreover, homes listed by real estate agents are more likely to sell at or above the asking price, a stark contrast to FSBO listings, where sellers often find themselves reducing the price to attract buyers.
Statistics on FSBO seller motives
- 29% of FSBO sellers are driven by the desire for a quicker sale.
- 30% aim to save on commission.
- 48% are confident they know as much about selling as an agent.
(Source: Clever)
The desire to save time is almost as big a motivator for selling FSBO as saving on realtor fees, according to a Clever survey of home sellers. Clever’s data also shows that FSBO sellers are more likely to sell within the first week. This is likely because just 38% of sellers already have an interested buyer in mind.[1]
The problem is that FSBO homes tend to sell for much less than agented homes, often neutralizing the cost advantage of dispensing with an agent.
Despite this, FSBO homes can — and often do — sit on the market for a significantly longer period of time than agent-assisted homes. Moreover, the home sale process is typically complex and time-consuming, and for many sellers without an agent, it amounts to a full-time job.
In addition to these motives, 48% of FSBO sellers said they were confident they knew just as much about selling a home as an agent would. While this is surely true for some sellers, it’s worth noting that many FSBO sellers eventually cave and hire a realtor. If you don’t like those odds, Real Estate Witch can help you save money without the risk of a botched FSBO sale.
Statistics on FSBO pricing strategies
- 40% paid for a professional appraisal
- 36% used recent homes sold in the area
- 16% of FSBO sellers used online home valuation tools
- 15% based on the profit needed
(Source: National Association of Realtors)
FSBO sellers use a variety of methods to price their homes, most of them informal, and many sellers apparently use multiple methods. Paying for an appraisal or looking at how much nearby homes sold for are the most popular methods.
In cases where sellers eschew professional advice, FSBO sellers risk asking for too much, causing the house to sit on the market unsold. Conversely, they may leave money on the table by asking for too little.
The 2024 NAR survey finds that 36% of all FSBO sellers priced their homes by comparisons to recent home sales in their area.[1] Other methods included:
- 40% used appraisals
- 16% used online home evaluation tools
- 15% calculated the price based on the profit they need from the sale
Less common methods included setting the price to cover what was owed on the home and attending open houses for sale in the area or viewing homes for sale online.
Statistics on FSBO marketing strategies
- 63% of FSBO sellers didn’t market their home
- Among sellers who did actively market their home, 12% used a yard sign and 10% used a third-party aggregator.
(Source: National Association of Realtors)
According to NAR, nearly two-thirds (63%) of FSBO sellers didn’t market their homes.[1]
But for FSBO sellers who did actively market their homes, these were the most common strategies:
| Marketing method | Percentage who used it |
|---|---|
| Friends, relatives, or neighbors | 18% |
| Yard sign | 12% |
| Third-party aggregator (Zillow, Trulia, Redfin, etc.) | 10% |
| Multiple Listing Service (MLS) website | 10% |
| Open house | 5% |
| Social networking websites | 3% |
| Source: National Association of Realtors, 2024 Profile of Home Buyers and Sellers | |
Other, less common methods included:
- For-sale-by-owner websites
- Online classified ads (e.g., Craigslist, newspapers)
- Realtor.com
- Virtual tours
- Other websites with real estate listings (e.g., Google, Yahoo)
- Video
- Direct mail (e.g., flyers, postcards)
Not surprisingly, these numbers varied depending on whether the seller already knew the buyer or not.
The takeaway? If you don't know your buyer, you'll probably want to use a mix of marketing strategies to attract the most offers.
How long it takes to sell FSBO
- 24% of FSBO homes are sold within the first week.
- This is likely because 38% of FSBO sellers already know their buyer.
- FSBO homes are 9% more likely to sit on the market for longer than three months.
(Source: Clever, National Association of Realtors)
FSBO homes tend to sell quicker than agent-assisted homes, with 24% of FSBO homes selling in the first week compared to just 11% of homes represented by an agent.[3]
Contributing to the greater speed is the fact that a significant portion of FSBO sellers already know the buyer. NAR data shows that in 38% of all FSBO sales, the seller has a buyer already lined up.[1]
FSBO may offer faster sales, but sellers are less likely to benefit from that if they don’t have a specific buyer in mind. After the first week, FSBO sales tend to take longer. They’re 2% more likely than agented sales to sit on the market for more than a month and 9% more likely to wait over three months.[3]
You will almost certainly invest much more of your personal time in the FSBO process than if you hire an agent. The FSBO process is complicated, time-intensive, and basically a full-time job.
Biggest challenges for FSBO sellers
- 17% of FSBO sellers say getting the price right is the hardest aspect of the process.
- 13% say it's selling within a desired time frame.
- 10% say it's dealing with paperwork.
(Source: National Association of Realtors)
Selling a home without the benefit of an agent is usually no easy task. The average property sale in California requires 180 sheets of paper, according to seasoned broker Marlene Bertrand. FSBO sales typically require an array of tools for everything from preparing your home to listing, marketing, pricing, and closing.
FSBO sellers polled by NAR said that the most difficult aspects of the process included:
- Pricing the home properly (17%)
- Selling by a specific date (13%)
- Understanding and filling out FSBO paperwork (10%)
Less commonly, FSBO sellers also complained about fixing up the home, having enough time to devote to all aspects of the sale, attracting potential buyers, and helping the buyer obtain financing.
Pricing in particular is one area where FSBO sellers often stumble and end up leaving money on the table. FSBO sellers often turn to a professional appraiser or a home value website in order to determine their home’s listing price.
Selling a home FSBO also has a variety of hidden FSBO costs that don’t show up in pricing statistics, including appraisals, photography, marketing, MLS listing, and attorney fees. These are in addition to the standard costs of selling a home, such as title insurance and escrow fees.
Bottom line: Is FSBO right for you?
One of the most important facts about FSBO is that just over half of all FSBO sellers already know the buyer. If, like them, you know the intended buyer of your home, for sale by owner could be a reasonable option.
But it’s worth reiterating that many people who try selling their home by themselves throw in the towel and hire an agent. The data suggests that roughly one in a quarter of American home sellers fit this description.
Ultimately, whether you decide to go FSBO should depend on:
- Your experience and comfort level with real estate sales
- Your willingness to take risks
- And/or the amount of time you can invest in the process
If the FSBO process seems overwhelming to you, there are ways to save money on commission while benefiting from the services of a professional agent.
Real Estate Witch can match you with top-rated local agents who can sell your house quickly, for top dollar, AND save you thousands with 1.5% listing fees.
FAQ
Can I save money by selling FSBO?
Yes, it's possible that by avoiding paying for a listing agent, you will save money on a FSBO sale. However, the average FSBO home sells for up to 15% less than agent-assisted homes, so you may wind up losing money overall. And don't forget that as the seller, you will still probably need to offer a competitive buyers agent commission.
Are FSBO sales faster than agent-assisted sales?
Generally, yes. The data suggests that FSBO homes spend a median of one week on the market, compared to three weeks for agent-assisted sales. The difference likely owes something to the fact that about half of FSBO sellers already know the buyer, so they dont need to spend time marketing their homes. Also, this varies widely depending on the city. In some cities FSBO homes spend far longer on the market.
How do FSBO sellers determine the price of their house?
FSBO sellers use a variety of methods to decide their homes asking price, including taking advice from a real estate agent. Zillow data shows that many FSBO sellers use online home valuation tools, research comparable homes for sale in the area, and/or pay for a professional appraisal.
Related links
Looking to sell your house by owner? Read more to learn about the ins and outs of the process, including the tools you need to execute a successful sale:
How to Sell Your House Without a Realtor: Discover what you need to master to successfully execute a FSBO sale.
Best For Sale By Owner Websites: Read our recommendations for sites to help you market your FSBO listing.
The Best Discount Real Estate Brokers for Every Budget: Find the best discount real estate brokers for every budget in every state. Compare fees and savings to learn which company is right for you!