When Selling a House by Owner Actually Makes Sense

Interested in selling your home but put off by the high cost of real estate agent commissions? Many homeowners consider going the “for sale by owner” route and taking on the task of getting their property sold on their own. But as we’ve covered before, it’s not always the wisest decision. Selling a house by owner can be an incredibly difficult road to navigate, and oftentimes, it isn’t worth the money a homeowner could save on agent commission fees.

Still, there are always exceptions. Below, we’ll cover the basics of what it means to sell a house by owner, including when it might actually make sense to do so.

What does it mean to sell a house by owner?

For sale by owner, also referred to as FSBO, is when home sellers choose to list, market, and—hopefully—sell their home without the help of a licensed real estate agent. The motivation for doing this is almost always to save on costs, since home sellers are usually responsible for paying the commission of both their own agent and the buyer’s agent. Ultimately, that means a pretty big chunk of money lost out of the profit on the home.

While savvy sellers may think that selling a house by owner is an easy way to keep more money in their pocket, most of the time FSBO ends up being a waste of time, energy, and money. There can also be legal consequences that could otherwise have been avoided by handling everything through an agent.

But what about those times when for sale by owner makes sense? Turns out, while FSBO isn’t always the best option, sometimes it actually is a smart choice. Here are four situations where selling a house by owner is worth considering.

When you already have an interested and viable buyer

When you’re selling in a high-demand market

When you’re not in a hurry to sell

When you’re selling a mobile or manufactured home

Advice for selling a house by owner

If you’ve done your research and you truly think that FSBO is the right choice for your home sale, the next step is going to be ensuring that you list your home effectively and protect both yourself and your assets during the sale process. Here are some tips all FSBO sellers should keep in mind.

Don’t overprice. An overpriced home is difficult to sell with a real estate agent, and even more difficult to sell on your own. You can determine the appropriate price by researching recent comparable home sales in your area and seeing what they sold for. Keep in mind location, home size, and home quality when determining what can be considered a comp. If you don’t mind spending a little bit of money, you can also hire an appraiser to let you know your home’s fair market value.

Put together a high-quality listing. Many times, a listing is your home’s first impression with buyers. If it has poor (or worse, no) pictures and/or a lacking description you’re going to lose prospects right off the bat. Really take the time to perfect your listing so that you’re not sabotaging your sale from the get-go. Hire a professional to take photos of your home for you if you don’t have experience with house photography, and put a ton of detail into your listing. Have a friend take a look at it to point out any typos or areas that need more information.

Be completely honest in your disclosures. If the house is going to need a new plumbing system or there’s water damage under the carpet in the basement, you need to disclose these to potential buyers—even if you don’t want to. Sellers are required by law to reveal any known defects in the property, and a failure to do so could get you into some serious legal trouble later on.

Don’t turn down a showing. Say “yes” to every single showing request. Availability is just as important as marketing, since a buyer may not be willing to wait around. With FSBO, you need to jump on every opportunity that you get, which means planning your schedule around showings and not the other way around. It may not always be convenient for you, but it’s a big part of getting your home to contract.

Find a good real estate attorney. Have at least one professional in your corner who you really trust to negotiate for you and protect your interests. It’s best to hire an attorney early on so that you can be sure to avoid any legal pitfalls during the FSBO process. You will have to pay out fees to them during closing, but it’s definitely going to be money well spent.