Woman taking a break on her back deck with open laptop and notebook nearby.

How To Sell A House By Owner

Jamie Johnson6-minute read

March 08, 2022


A home is a significant investment, so when it’s time to sell, you want to see the biggest returns possible. There are many different ways to accomplish this, but some homeowners choose to sell their home without the help of a REALTOR®.

This option could save you thousands of dollars, but it’s not ideal for everyone. This article will explain how to sell a house by owner, and the pros and cons of this decision.

What Does ‘For Sale By Owner’ Mean?

If a house is for sale by owner (FSBO), it means the homeowner is selling without the assistance of a real estate agent. Sellers often choose this route to avoid paying real estate commissions, which are typically between 5% – 6% of the home’s sale price.

For example, if you’re selling a $250,000 home, you could save as much as $15,000 in REALTOR® commissions. While the idea may sound appealing, selling your home on your own can be a tricky process unless you’re educated in real estate and selling property.

You’ll be responsible for all of the tasks that an agent would normally take care of, including:

  • Researching property values in the neighborhood
  • Determining a fair listing price for the home
  • Staging the home and making necessary repairs
  • Listing the home on the multiple listing service (MLS)
  • Scheduling the showings and open houses
  • Negotiating the terms of the sale
  • Preparing any necessary legal documents

How To Sell A House By Owner: 4 Important Steps To Follow

It’s possible to sell your home without a REALTOR®, but it’s not always easy. Unless you have experience in the real estate market, there will be a bit of a learning curve in the beginning. Let’s look at four steps you’ll take to get started.

1. Decide On A Reasonable Price

Before you can sell your home, you need to decide on a reasonable listing price. This process may sound straightforward, but there’s actually quite a bit of research that goes into listing a home.

The biggest danger is that you’ll overprice your home and turn many buyers off. You need to find a price that potential buyers will feel is reasonable, or they’ll likely rule your home out without even coming to see it.

The best way to come up with a fair listing price is by having your home professionally appraised. The appraisal will determine the estimated market value of your home. An appraiser does this by looking at several different criteria: 

  • An inspection of the interior and exterior of the home
  • Researching county and municipal records and other MLS listings
  • Reviewing recent sales of comparable homes in the area

However, it’s important to keep in mind that damages to the home or other issues can affect the listing price. For instance, if you have an older home that needs to be painted or will need a new roof in a couple of years, your listing price will be lower.

2. Make Your Home Market-Ready

Before you start scheduling open houses or even showings, you need to clean up the home and make sure it’s appealing to potential buyers. Here are some tips to make your home stand out: 

  • Deep clean: Start by giving your home a thorough cleaning – wipe down all of the counters, wash the windows, and shampoo the carpet.

  • Declutter the entire house: It will be easier to keep your home clean and orderly if you declutter and get rid of everything you don’t need. You can donate any items that you want to get rid of.

  • Utilize natural light: Borrowers appreciate homes with a lot of natural light, so you should utilize this as much as possible. Open all of the curtains and blinds and replace any light bulbs that stopped working. This will help the home look bright and airy.

  • Focus on curb appeal: Even if the inside of your home is nice, it will be a harder sale if the home has poor curb appeal. Spend some time cleaning up the landscaping, adding fresh mulch, and planting some flowers.

  • Put away personal items: When potential buyers visit the home, they need to be able to visualize themselves living there. To make this easier for them, store any personal items like family photos or keepsakes.

  • Pay for professional photographs: Most potential buyers will research your home online and on social media before coming to see it, so it’s important to have professional photos taken. A professional photographer will present your home in the best light, which will help to draw in more buyers.

3. Be Available

Some buyers may be hesitant to look at FSBO homes because they’ll be concerned about your inexperience. That’s why it’s essential to show up as a professional and do the same things a real estate agent would do.

For instance, you should plan to be on call until the sale is finalized. You’ll need to answer phone calls about the home in the evenings and on the weekends because that’s when buyers are usually looking.

You’ll also need to answer any questions buyers may have and be willing to receive feedback about the house. Don’t take negative feedback personally — look at it as an opportunity to improve the value of your home.

4. Consult A Real Estate Attorney

Selling a house without a real estate agent can be difficult, so it’s a good idea to seek out guidance from a real estate attorney. Hiring a real estate attorney will cost you several thousand dollars, but this guidance can be invaluable.

Get approved to buy a home.

Rocket Mortgage® lets you get to house hunting sooner.

The Pros and Cons Of Selling A House By Owner

If you’re considering selling your home without the help of a real estate agent, there are some advantages and disadvantages that come with that decision. Here are some of the pros and cons of selling a house by owner.

The Pros

Save Money On Commission Fees

The biggest reason many people choose FSBO is to save money. Since a REALTOR® isn’t involved in the process, you’ll get to keep all of the profits after closing on the house. Saving 5% – 6% on the sale of your home can be significant depending on the price.

More Control Over The Selling Process

As an independent seller, you’ll have full control over the showings, listing price, and any other aspect of selling the home. If you have some real estate knowledge and feel like you can do a better job selling the home on your own, this may be the right option for you.

The Cons

Lack Of Expertise

Qualified real estate agents have years of experience under their belt, and in comparison, your knowledge may be insufficient. As a result, you may make costly mistakes that a real estate agent wouldn’t make.

For instance, if you list your home too high, you could lose out on potential sales. And if you forget to disclose certain things about the home, you could open yourself up to future litigation. Depending on your level of experience, you may have trouble navigating this process on your own. 

Time Consuming

You may end up saving money on the home sale, but you’ll pay for that money with your time. Essentially, you’ll be acting as your own real estate agent —  selling a home is a time-consuming process, and you’ll be doing all of it on your own.

You’re responsible for analyzing recent home sales, listing your home, staging the home, fielding offers, negotiating with buyers, and much more. And you have to do all this work before even closing on the property. It’s possible to take all of this on by yourself, but it can be stressful and hard to manage.

Could Sell For Less Money

According to the National Association of REALTORS® (NAR), only 7% of home sales were FSBO. And this data shows that FSBO homes usually sell for less money than other homes.

On average, FSBO homes sold for $260,000, which is below the median sale price of $318,000 for agent-assisted home sales.

The Bottom Line

Working with a real estate agent is the best way to go for most sellers. That’s because most people simply don’t have the time or resources needed to sell a house on their own.

Even if you believe you’re the exception to that rule, it will still likely be more work than you expect. If you decide to work with a real estate agent, look for someone with years of experience who is familiar with your neighborhood.

But if you’re considering selling a house without a REALTOR®, take the time to do some research first. Consider hiring a real estate attorney and using an appraiser to determine the listing value. And take some time to learn how to get your house ready to sell.

Take the first step toward buying a house.

Get preapproved to see what you qualify for.

See What You Qualify For

Jamie Johnson

Jamie Johnson is a Kansas City-based freelance writer who writes about a variety of personal finance topics, including loans, building credit, and paying down debt. She currently writes for clients like the U.S. Chamber of Commerce, Business Insider, and Bankrate.