How to sell a house by owner
Learn how to successfully prepare, price, market, and negotiate to get the best offer on your home.
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Angela Mae is a Credible authority on personal finance. Her work has been featured by Credit Karma, Lendstart, and GoodRx.
Updated September 6, 2024, 5:29 PM EDT
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When it comes to selling your home, you generally have two options: use a real estate agent or do it yourself. If you enjoy taking things into your own hands and don’t mind a bit of a challenge, selling a home yourself could be worth the effort. Listing a home as for sale by owner (FSBO) is less common than using an agent, totaling 7% of home sales in 2023 according to the National Association of REALTORS® (NAR), but you may close faster and could save money on REALTOR® commission fees.
Selling a home without an agent means you’ll need to do everything yourself — from preparing and pricing your home to marketing it and negotiating offers.
Learn more about how to sell a house by owner, how to successfully close on the sale, and whether it’s the best option for you.
What are the pros and cons of selling a house by owner?
Having a real estate agent can make selling a home easier, but some people choose to list their properties as FSBO, meaning they’re not using an agent.
Before going the DIY route, here are some major pros and cons you’ll need to consider:
Pros
- Saves money: When you sell with a REALTOR®, you generally have to pay a commission fee to your agent. This is usually a percentage of the home sales price, typically no more than 6%. Skipping the seller’s agent could save you at closing.
- Potentially faster sale: The NAR also reported that 57% of FSBO sellers knew the person buying their home last year. Having a buyer lined up often makes for a faster sale than agent-assisted transactions.
- Total control: Selling a home yourself cuts out the third party, giving you flexibility and full control over the sale, from pricing and marketing to negotiating offers.
Cons
- Offers may be lower: Pricing a home appropriately can be difficult, and you may get lower offers. In 2023, the median sale price of FSBO homes was $310,000, compared to $405,000 for agent-assisted homes.
- Limited access to platforms: REALTORS® have access to marketing channels, including the local multiple listing service (MLS). This lets them reach a broader network of potential buyers. As a DIY seller, you may not have access to these channels.
- Time and labor: Agents handle the details of real estate transactions. Doing it on your own means you have to handle everything, including preparing your home, setting up showings, dealing with paperwork, and negotiating offers.
How to prepare your house for sale
Taking some time to prepare your home before marketing it can help you attract more buyers — potentially with higher offers. Here are some techniques to get your home ready:
- Clean and remove clutter: Declutter your home and have it professionally cleaned.
- Touch up important areas: Get rid of any stains and touch up the paint in key areas, like the baseboards, kitchen, entryway, or bathroom.
- Depersonalize: Help your prospects imagine themselves living in the home. This means putting away personal belongings and sentimental items like family photos, collectibles, or items related to your hobbies or interests.
- Staging: Be sure to stage your home, too. Staging a home can make it easier for buyers to visualize it as their own. It can also lead to higher offers.
Tip:
If needed, do some cosmetic repairs yourself. This could mean fixing a leaky faucet, purchasing a newer kitchen appliance, or patching up small nail holes. Even little touches can make a difference.
How to price your house correctly
If this is your first DIY sale, pricing a home for sale can be challenging, but doable with the right tools. Homebuying websites often let you estimate your home’s price or see what comparable properties have sold for.
“There are so many tools available online to assist for sale by owners with pricing their properties,” said Kristen D. Conti, a Florida REALTOR® and broker-owner at Peacock Premier Properties. “I would start with Realtor.com, Zillow, HomeLight Value Estimator, Redfin, & Eppraisal.”
Try to price your property as accurately as possible. Price it too high and you might deter prospects. Price it too low and potential buyers might wonder if something is wrong with it.
Even with a FSBO listing, you may still want to get a professional to help determine the best pricing.
“It can also be a good idea to pay a licensed REALTOR® or a licensed appraiser for a comparative market analysis or a certified appraiser,” Conti said. “This will cost under $500 and will be very useful when negotiating with a buyer.”
Other options for pricing your home appropriately include:
- Compare home prices yourself: Check the pricing of properties in your area that have recently sold or are currently on the market to determine how yours stacks up. Be sure to compare property condition, square footage, and key features.
- Review local tax records: If you have the real estate ID number, address, parcel identification number, or owner name, you can check tax data and property records on your state or county website.
What are the best ways to market your home?
It can take time to effectively market a home for sale, but it’s also worth it when the offers start coming in:
- Quality photos: Start with a visually appealing listing. Take high-quality photos of your staged home or hire a professional photographer. Make sure each room is well-lit so prospective buyers can clearly see your home’s details. You may also want to create a virtual or video tour of your home for those shopping online.
- Detailed description: Write a listing that emphasizes your home’s best features. Highlight selling points like the location, community amenities, recent updates, and new appliances.
- Online listing: Decide where you want to list your property. You have several options, including sites like Craigslist and local Facebook sales groups. You can also use paid social media ads to reach more prospects.
The MLS is another way to market your property. If you don’t have an agent, you’ll need to use a flat-fee listing service. This can help you reach a larger pool of prospective buyers. Fees vary based on the service and package you pick.
“The most important thing a seller needs to do is be completely honest about the condition of the home. A seller MUST disclose anything that could materially affect the value of the property,” Conti said. “I strongly suggest having a home inspection done, and complete any necessary repairs before putting the property on the market.”
Note:
Conti added that you can list your property “as is” on your chosen platform. This may exclude certain types of financing, however. “The better the condition, the more financing vehicles there are available to buyers,” she said.
How to show your home to potential buyers
When you sell a home yourself, you’re responsible for coordinating showings and communicating with potential buyers. Here are a few other tips for having a successful home showing:
- Declutter, stage, clean, and organize your home beforehand
- Remove any pets before the showing
- Maintain open and transparent communication from scheduling to post-showing
- Set clear boundaries with any prospective buyers, particularly for last-minute drop-ins
- Always show up before the buyer does
- Practice safe tactics, especially if you still live on the property
How to negotiate offers without a real estate agent
Unless you’ve done it before, negotiating a home sale can be tricky. Whether or not you’re a skilled negotiator, there are some ways to ensure the process goes smoothly and you get a fair offer.
“It's important to create a win-win so the deal flows smoothly and everyone gets what they feel is a good deal,” Conti said. “Decide in advance those things that are non-negotiable. But also have a few things that you can be flexible on.”
You don’t have to compromise on everything, but being flexible can help you get the best offer. This could include:
- Making minor repairs
- Being flexible on the closing date
- Negotiating who pays what during closing
- Setting or waiving certain contingencies that aren’t as important to you
“Try to give terms that may be important to the buyer if they aren't that important to you,” Conti said. “Giving a little can result in facilitating a great deal. It's also extremely important to use the logical part of your brain and leave emotions out of it as best you can. Try to see your home as it is and not for the sentimental value.”
How to close a sale by owner
Even if you forgo a REALTOR®, it’s generally a good idea to have a real estate attorney help you through closing. A reputable attorney can create a purchase and sale agreement, which may include:
- Legal names and mailing addresses of buyer and seller
- Legal description of the property (e.g., single-family home, duplex)
- Property condition
- Any personal property included in the transaction
- Home purchase price
- Financing and terms
- Earnest money
- Contingencies and severability clause
- Expected closing date
- Title transfer and legal requirements
- Any disclosures
- Both parties’ signatures and dates
Look for a reputable real estate attorney experienced in FSBO homes. Make sure they’re licensed in your state.
How to sell a house by owner FAQ
Is it hard to sell a house without a REALTOR®?
Selling a home without an agent can be complicated if you’re not prepared. Doing your research can help, but so can having a real estate attorney to clarify any nuances and keep the process running smoothly.
How much do you save selling without a REALTOR®?
A seller’s agent’s commission fee is usually 2.5% to 3% of the home sales price. In a FSBO transaction, you can save that money. For example, if you sell your home for $350,000, you could save $8,750 to $10,500. You may need to pay other costs, like marketing fees or a real estate listing service.
What are the steps to selling a house yourself?
The DIY selling process entails preparing your home for sale, pricing and marketing it, coordinating showings, and negotiating the terms — and price — of the sale. You may also need to handle paperwork, which you can do with an attorney.
Can I sell my house without a REALTOR® if it's not in perfect condition?
Yes, but the condition of your home can determine the types of offers you receive. Certain types of financing may not be available to buyers if the home is in poor condition. For example, your property must meet the national or local building codes to qualify for an FHA mortgage.
What legal considerations should I be aware of when selling my house by owner?
When selling a home, you’ll generally need to deal with closing paperwork. This can include sales contracts, title transfers, and other documents. You may also be required to disclose details about the condition of your property, as well as any safety concerns or hazardous issues.
Since every state has its own laws, you might want to get a real estate attorney to help you navigate the legal process. That way, you can avoid potentially costly litigation or other legal issues.