How to Sell Your Home For Sale By Owner (FSBO)

Listing your home for sale by owner (FSBO) can be an attractive option for sellers who want to reduce agent commissions and keep more equity from the sale. However, there are challenges to working without a real estate agent. The seller would be responsible for the entire sales process, from pricing to marketing to closing. If you’re considering listing your home as FSBO, here’s an in-depth look at how the selling process works.

What does for sale by owner (FSBO) mean?

About 88% of home sales in 2024 were facilitated by a real estate agent, according to data from the National Association of REALTORS® (NAR). Selling with an agent gives you the advantage of their industry expertise and customized advice. A skilled agent can help you get the best price and maximum exposure for your home. However, these advantages come with a commission fee, usually roughly 5% of the purchase price. 

To save money on commission fees, some home sellers take on the listing and marketing processes themselves. These homes are listed for sale by the owner, or FSBO. This means that the homeowner takes on the responsibilities of selling the home, which includes preparing, staging, photographing, listing, marketing, and negotiating the price of the home. Additionally, the homeowner would handle all the paperwork involved. 

Before selling your home on your own, consider the pros and cons:

How to set a price for your home

To set a listing price, a real estate agent pulls sales data in a comparative market analysis to determine a home’s fair market price. You may not have as many resources available when you sell the home yourself.

In most states, real estate transactions are public record. You can look up what similar homes have sold for to get an idea of what you should charge for yours. To get the most accurate data, confine your search to homes that have sold in the last six months and are as close to your neighborhood as possible (ideally within a few miles and the same school district).

Comparable homes should be close to the size (square footage and lot size), condition, and age of your house and with similar amenities. While sales data are helpful, they may not include concessions (i.e., closing costs, carpet allowance, appliances that are conveyed with the property, etc.) that the seller used to close the deal.

If you’re selling property in a nondisclosure state, you can pay a real estate agent to do an analysis for you or you can pay for a full appraisal. Either one will give you a more accurate picture of your property’s value. This extra expense may be worth your while so you can price your home right the first time. 

Doug McCoy, Al and Shary Oak director of real estate and teaching professor of finance for the Kelley School of Business at Indiana University, notes that it’s imperative to “base your asking price on comparable selling prices in your neighborhood, not asking prices. A lot of potential sellers are using Zillow or similar sites to price their homes, but asking prices are not selling prices. The seller must make adjustments up or down for differences between the homes being compared.”

How to market your FSBO home

Once you determine a fair price for your home, you must let would-be buyers know that it’s for sale. The best place to start is the multiple listing service, or MLS. This private database contains homes for sale in a given area and is used by real estate professionals to help their clients search for or sell properties. NAR found that in 2024, all homebuyers used the internet during their home search, and the first step for 43% of buyers was to search for a home online. If you want to reach the most homebuyers, putting up an internet listing should be a top priority.

The only way to post a home on the MLS is to hire a real estate agent or broker to do it for you or to use a flat-fee service like Houzeo or HomeLister. Secondary sites like Zillow and Redfin pull data from the MLS, but they are not as detailed or accurate as the MLS. That said, you can list on these secondary sites for free. 

In addition to the MLS, it’s a good idea to list your house on for sale by owner websites like FSBO.com or ForSaleByOwner.com.

How to negotiate and close a FSBO sale

Haggling over the price of the house can be tricky, and as a FSBO seller, you don’t have an agent to negotiate on your behalf. 

Going back and forth between buyer and seller can get confusing, but McCoy has a two-word recommendation for how to negotiate a FSBO transaction: “In writing.” He explains that “it’s very important to have signed documents of the offer, counteroffer, inspections, financing, etc. when going back and forth between the buyer and seller. It is the totality of the offer that needs to be considered by both parties, not just the price. As they say, the devil is in the details.” 

By keeping track of all the details, changes, and concessions in various stages of negotiations through a paper trail, you’re less likely to make a mistake or have to rely on your or the buyer’s memory of what you agreed upon.

What paperwork is required to sell a home by owner?

The documentation and paperwork required to sell your home varies based on your state. Even if your state doesn’t require one, it may be wise to consult an attorney to ensure you’ve signed and sent all the necessary agreements before you close the deal.

These are a few of the documents you may be required to complete when you sell your FSBO home:

• Property survey 
• Receipts and warranties for appliances that convey with the home
• Plans and permits
• Certificates of occupancy 
• Loan documents (if you have a mortgage on the home)
• Latest utility bills
• Latest property tax assessment or bill
• Title
• Homeowners association covenants and agreements