Buying a House for Sale by Owner

You don't have to go without a real estate agent just because the FSBO seller doesn't have one.

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Updated · 3 min read
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Written by Barbara Marquand
Senior Writer
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Reviewed by Michelle Blackford
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Edited by Jeanette Margle
Head of Content, Home Loans
Editor's Note: This article has been updated to reflect the outcome of a legal settlement involving commissions paid to real estate agents representing home buyers. Starting in August 2024, home buyers in most markets must sign agreements with their agents before touring homes, and buyers will set their agents' commissions through negotiation. See how this will affect home sellers and home buyers.

Most home sellers work with real estate agents to list and market their properties and negotiate with buyers. But some sellers skip hiring an agent and list their homes "for sale by owner," or FSBO (pronounced "fizbo").

Buying a home for sale by owner means you, or you and your agent, will deal with the homeowner directly rather than through a listing agent who represents the property owner.

About 6% of homes sold between July 2023 and June 2024 were FSBO sales, according to a National Association of Realtors (NAR) 2024 survey.

Pros and cons of buying FSBO homes

Pros

  • Including FSBO properties in your search will increase the odds of finding a suitable home, a considerable plus in today's tight market in which buyers far outnumber homes for sale.

  • You could get a bargain. The median sale price for FSBO homes was $380,000, compared with $435,000 for homes sold with an agent's help, according to the NAR's survey.

Cons

  • A FSBO seller might be reluctant to pay your agent's commission.

  • FSBO sellers may not have any real estate expertise, which could put more burden on you and your agent to make sure everything is done correctly.

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