Okay, so a friend from my Master’s of Social Work (MSW) program called me, excited about saving money by buying a house directly from a for-sale-by-owner seller. Three weeks later? She was buried in paperwork she didn't understand and stressed about whether she was overpaying.
Here’s something they don’t tell you. Buying a house without a REALTOR®—what the industry calls a FSBO (For Sale By Owner)—is absolutely possible. But the reality is this: According to the National Association of REALTORS®' 2024 Profile of Home Buyers and Sellers, FSBO transactions hit an all-time low of just 6% of all home sales in 2024.
Why the decline? The housing market has gotten more complex, and the price you might save on commission often gets lost in other ways. I completely understand wanting to save money. But you need to know what you're getting into before making offers on FSBO properties.
Think of it like this: buying a FSBO is like doing your own taxes with a complicated financial situation. Sure, you can do it, but should you? That depends on your knowledge, time, and comfort with risk.
The numbers tell a clear story. According to NAR's 2024 data, FSBO homes sold for a median price of $380,000, compared to $435,000 for agent-assisted sales. That's a $55,000 difference—significantly more than typical buyer's agent commission.
But here's something interesting: 38% of FSBO sellers in 2024 already knew their buyer before listing. When you already have a buyer lined up, a FSBO makes more sense. You're not marketing the property or negotiating with strangers.
The success rate tells another story. Research from List with Clever Real Estate shows only 11% of FSBO sellers complete the sale without eventually hiring a REALTOR®. Another 10% switch to using an agent midway through when they hit roadblocks.
Time matters too. According to ZipDo Education Reports, FSBO homes spend an average of 95 days on the market, compared to 75 days for agent-assisted sales.
Regional patterns vary. Based on September 2025 data from HouseCashin.com, Ohio leads FSBO activity at 13.61%, followed by Texas at 13.22% and Indiana at 12.76%. Hawaii has the lowest rate at 0.92%. Here in Louisville, we see moderate FSBO activity, though nowhere near Texas or Ohio levels. California falls in the middle, while Florida shows about 7.65% FSBO listings.
A FSBO makes sense when you already know the seller, have previous real estate experience, have time to manage the process, understand your local market, or are comfortable navigating legal documents. For first-time buyers without those advantages? The data suggests professional help might serve you better.
Let's talk about what you're really taking on when you buy a FSBO. I'm not trying to scare you away, but you need to understand these challenges upfront.
The market knowledge gap is real. When you work with a buyer's agent, they bring access to the Multiple Listing Service with detailed comparable sales data. They know what similar homes in the neighborhood sold for last month, last quarter, last year. Without that access, you're relying on public websites like Zillow or Redfin, which don't always show the complete picture. You won't see the homes that sold off-market or the price reductions that happened before closing. This is where that $55,000 price difference starts to make sense—you might overpay simply because you don't have good comps.
Negotiation without a safety net puts you at risk. Think about the last time you negotiated a major purchase. Now imagine doing that when the other party knows you don't have professional representation. FSBO sellers might be selling on their own because they're experienced real estate investors, or because they're trying to maximize profit. Either way, you're negotiating without the expertise that comes from closing dozens of deals. Real estate agents negotiate for a living. You probably don't.
The paperwork mountain is higher than you think. Purchase agreements, seller's disclosures, inspection contingencies, financing contingencies, appraisal contingencies, title commitments, HOA documents—each has legal implications. Real estate transactions are a system with lots of moving parts, and missing one connection can cause the whole thing to fall apart.
Missing professional networks means starting from scratch. Your buyer's agent typically has relationships with home inspectors they trust, contractors who do quality work, real estate attorneys who know local requirements, and title companies that close efficiently. Without those connections, you're searching online reviews and hoping for the best. I had a client who hired the cheapest inspector they could find during a FSBO purchase. That inspector missed significant foundation issues that cost them $18,000 to repair after closing.
Time commitment is substantial. You're now responsible for scheduling showings, researching comparable sales, coordinating appraisals, ordering home inspections, negotiating repair requests, managing title work, and following up on every detail until closing.
Wait, let me clarify—I'm not saying you need to quit your job to buy a FSBO. But expect to spend 15-20 hours minimum on research, coordination, and paperwork for a smooth transaction. If complications arise, double that.
This isn't optional—it's your foundation for everything else. Getting started with your preapproval through lenders like AmeriSave can often be completed online in just a few minutes, and you'll know exactly what you can afford before you fall in love with a house that's out of reach.
Preapproval means a lender has reviewed your income, assets, debts, and credit score to determine how much they're willing to lend you. This is different from prequalification, which is just a quick estimate based on information you provide without verification. According to mortgage experts at LendingTree, preapproval letters are typically valid for 60 to 90 days.
You'll need to gather several documents: recent pay stubs covering the last 30 days, W-2 forms from the past two years, tax returns for the past two years if you're self-employed, bank statements from the last two months showing your down payment funds, and identification like your driver's license and Social Security number.
One concern I hear a lot is about credit score impact. Yes, mortgage preapproval involves a hard credit inquiry, which might lower your score by a few points temporarily. But here's the good news: according to Chase, multiple mortgage inquiries within a 45-day window are typically counted as a single inquiry. This means you can shop around with different lenders without destroying your credit.
Think of preapproval like this—it's your shopping budget. You wouldn't walk into a car dealership without knowing how much you can spend, right? Same concept. Plus, when you make an offer on a FSBO property, that preapproval letter shows the seller you're serious and your financing won't fall through at the last minute.
Without access to MLS data, you'll need to get creative with your research. Start with online platforms like Zillow, Redfin, and Realtor.com to see active listings and recently sold properties in your target neighborhoods. But remember these sites don't capture everything.
Your county tax assessor's website is a goldmine of information. You can look up recent sales prices, property tax amounts, lot sizes, and when the property last changed hands. This data is public record and usually free to access. Here in Louisville, I check the Jefferson County PPC website regularly. In California, you'd use the county assessor's site for similar information, while Texas buyers might look at their county appraisal district records.
Pay attention to price per square foot in the area. If most homes are selling for $150-175 per square foot, and the FSBO you're considering wants $200 per square foot, you need to understand why. Maybe it's been completely renovated. Or maybe the seller is overpricing because they don't have an agent providing market reality checks.
FSBO properties show up in several places. ForSaleByOwner.com is the largest dedicated FSBO marketplace. Zillow and Redfin also include FSBO listings alongside agent listings. Craigslist still has FSBO homes, though you need to be more careful about scams. Facebook Marketplace has become increasingly popular for FSBO sales, and good old-fashioned yard signs still account for about 65% of FSBO marketing according to ZipDo data.
When you find a property you're interested in, contact the seller directly through the phone number or email provided. Be professional but friendly. Remember, FSBO sellers are doing this themselves because they want to save money or maintain control—respect that. Ask about scheduling a showing, whether they have a seller's disclosure prepared, and if they're working with a real estate attorney.
Safety first when viewing FSBO properties. Always bring someone with you—a friend, family member, or your own real estate attorney if you've hired one. Schedule showings during daylight hours. Let someone else know where you're going and when you expect to be back. Meet at the property, not at a secondary location.
During the showing, take lots of photos and notes. Look for obvious issues like water stains on ceilings, cracks in the foundation, old or damaged roofing, outdated electrical panels, and signs of deferred maintenance. Don't be afraid to ask questions: When was the roof last replaced? Have there been any plumbing issues? Why are you selling? What don't you like about the house?
This last question often reveals useful information. An honest seller might tell you the neighbors are noisy or the AC struggles in summer. These aren't necessarily deal-breakers, but they're things you should know.
Seller's disclosure requirements vary significantly by state, and this is where buying a FSBO gets legally complicated. Some states require detailed written disclosures about every known defect. Others follow "caveat emptor"—let the buyer beware—and put the burden entirely on you to discover problems.
In Texas, for example, sellers must complete a detailed Seller's Disclosure Notice covering everything from foundation issues to neighborhood nuisances. California requires a Transfer Disclosure Statement that's even more comprehensive. Meanwhile, in Kentucky where I'm based, disclosure requirements are more limited, and sellers mainly need to disclose material facts they're aware of.
States like Alabama, Arkansas, and Virginia follow caveat emptor more closely. In these states, you should directly ask sellers specific questions: Do you know of any asbestos in the home? Have there been any problems with the heating, plumbing, or electrical systems? What condition is the roof in, and when was it last repaired? Has the home ever had termites or other pest damage? Is there any mold, or has there ever been visible mold you're aware of?
Most states require sellers to answer honestly when directly asked, even in caveat emptor states. Document these conversations in writing—send a follow-up email confirming what the seller told you. This creates a record if issues arise later.
Making an offer on a FSBO property requires careful thought about price, contingencies, and timeline. Start by determining what you think the property is actually worth based on your comparable sales research. Don't just accept the asking price as reasonable.
Your offer should include several key contingencies: a financing contingency that gives you an out if your mortgage falls through, an inspection contingency allowing you to negotiate or walk away based on inspection findings, an appraisal contingency protecting you if the home appraises for less than your offer price, and a title contingency ensuring the seller can provide clear title to the property.
The seller might counter at $415,000. You could meet in the middle at $405,000, or hold firm depending on your analysis and how much you want the house. This is where having an agent's negotiation experience really helps, but if you've done your homework and you're comfortable with confrontation, you can navigate this yourself.
One strategy that helps: frame everything around data. "Based on the recent sale of the comparable property at 123 Main Street for $398,000, I'm offering $405,000 because your home has an updated kitchen." This sounds more objective than "I feel like $405,000 is fair."
Once the seller accepts your offer, you enter the closing process—typically 30 to 45 days of coordinating various professionals and paperwork.
First, you'll select a title company to handle the closing. The title company researches the property's title history to ensure the seller actually owns it and there are no liens or claims against it. They'll provide title insurance protecting you if issues emerge later. Some states require real estate attorneys to be involved in closings. In Texas, attorneys aren't required but are common. In California, escrow companies typically handle closings without attorneys. Meanwhile, New York and several East Coast states require attorney involvement.
Your lender will order an appraisal to confirm the property's value supports the loan amount. If it appraises low, you'll need to renegotiate, bring more cash to closing, or walk away using your appraisal contingency.
The home inspection happens during your contingency period. Hire a licensed inspector—expect to pay $300-500 depending on the home's size and location. The inspection report will reveal issues with the property's condition. You can then negotiate with the seller about repairs, credits, or price reductions.
This reminds me of a systems integration concept from my MSW coursework about how different components need to work together for a successful outcome. In home buying, the lender, title company, inspector, and sometimes attorney all need to coordinate their work. When one piece runs late, everything shifts.
Closing costs for buyers typically run 2% to 5% of the purchase price. This includes loan origination fees, title insurance, appraisal fees, credit report fees, recording fees, homeowners insurance, property taxes prorated to closing date, and sometimes HOA fees.
Let's break down the actual costs with a real example. Say you're buying a $400,000 home.
But here's where it gets interesting. If the FSBO home sells for less because the seller doesn't have professional pricing guidance, you might save money. But if you overpay because you don't have access to good comps? You could lose more than you'd ever pay in commission.
The reality in 2025 is that many FSBO sellers still expect buyers to pay a buyer's agent commission through seller concessions, even when the buyer doesn't have an agent. This is a negotiation point—if the seller was planning to pay 2.5% to a buyer's agent and you don't have one, that money could reduce your purchase price instead.
Knowing when you need help is sometimes the best thing you can do. You might want to hire a lawyer if you're in a competitive market with a lot of offers, the negotiation is getting hostile and you're not comfortable, there are legal issues you don't understand, you don't have time to handle everything yourself, or the FSBO seller seems hard to work with or uncooperative.
The good news is that in 2025, the way buyer's agents get paid changed, which gives you more options. Clever and Redfin are two examples of discount brokers that charge lower fees. Some agents charge a flat fee instead of a percentage. You can sometimes talk about commission rates, especially if you're already well into the process.
Starting your mortgage preapproval with AmeriSave, whether you buy a FSBO or with an agent, helps you know your budget and shows sellers that you're a serious buyer with the money to buy. That credibility is important whether you're dealing with a FSBO seller or other buyers in a traditional sale.
A FSBO is a good idea if you know the seller, have bought and sold real estate before, have time to handle the process, are comfortable with negotiations, know your local market, and can afford to hire a lawyer.
If you're a first-time buyer, the market is competitive, you have a busy schedule, the property seems complicated, or you're not sure how to negotiate, it makes sense to hire an agent.
Get preapproved for a mortgage so you know how much you can spend. Learn about the seller's disclosure laws in your state, be honest about your skills and time, and decide if you need professional help.
The data shows that most buyers benefit from having an agent—they get better deals, faster closings, and professional help. A FSBO can work, but only for the right buyer in the right situation.
I understand that this is a lot to take in. Buying a house is hard enough with help from a professional. Doing it FSBO makes it even harder and adds more responsibility. But here's the thing: every year, thousands of people buy FSBO homes without any problems. You can too if you know what you're getting into.
Based on your situation, here is what you should do next. If you really want to buy a home without a real estate agent, the first thing you should do is get preapproved for a mortgage. Getting preapproved is the first thing you need to do, whether you want to buy a FSBO or hire an agent. You can start your application with AmeriSave today. Most buyers get initial approval within 24 to 48 hours of sending in all the required documents.
Do a lot of research on your state's disclosure rules. Take an hour to read through your state's real estate commission website to learn what sellers have to tell you and what protections you have as a buyer.
Be honest with yourself about how much time you have, how much you know, and how comfortable you are with taking risks. If you're buying your first home, working a demanding job, and don't like conflict, a FSBO might not be the best way for you to go. It's not wrong to want to hire a lawyer.
A FSBO could help you save money, but it takes a lot of time and knowledge to do it right. Agent representation costs more in commission, but it saves you time and gives you access to professional knowledge. There isn't a single right answer. You should trust your gut about which way is best for you.
If you want to go ahead with a FSBO, get your professionals ready now. Before you need one, find a good real estate lawyer, a good home inspector, and talk to your mortgage lender about when you can expect to close. If you have these connections before you start looking for a property, you can act quickly when the right one comes along.
And what if you decide that a FSBO isn't right for you after all? That's completely fine. Talk to a few buyer's agents, find one you can trust, and let them help you with the process. The peace of mind might be worth more than the money you would save by going alone.
Not getting preapproved for a mortgage and falling in love with a house they can't afford is the worst thing they can do. I see this a lot. People find their perfect FSBO home, make an offer, and then find out when they apply for a loan that they don't qualify for the amount they need. Now they've wasted the seller's time, possibly lost their earnest money, and had to deal with a lot of emotional pain. The second biggest mistake is not doing enough research on comparable sales. When buyers can't see MLS data, they often think the seller's price is fair. But FSBO sellers often ask too much for their homes because they don't have an agent to tell them what the market is really like. Check out recent sales in the area using county records, Zillow, Redfin, and any other sources you can find. Check out the price per square foot, how long it has been on the market, and its condition. If the FSBO home seems to cost more than 5–10% more than it should, be ready to negotiate or walk away.
Sadly, no. Only licensed real estate agents and brokers can access the Multiple Listing Service. It has the most complete information on active listings, pending sales, and closed transactions. If you don't have an agent, you can only look at public websites like Zillow, Redfin, Realtor.com, and Trulia. These sites get some information from MLS feeds, but it's not all of it. You won't see every listing, and the data might be a few days old. You also won't see the detailed notes that agents add about the condition of the property or the neighborhood. The best thing to do is to use a mix of public sources. For example, you can use Zillow and Redfin for recent sales data, county assessor websites for property tax records and sale histories, and ForSaleByOwner.com for FSBO-specific listings. You can put together a pretty full picture, but it takes more work. Just so you know, you're at a disadvantage compared to buyers who have an agent.
Look up sales of similar homes in the area from the last three to six months. Find houses that are the same size, age, condition, and location as yours. Find out how much these similar homes are selling for per square foot. If they're selling for $150–175 per square foot, that's a good starting point. Then make changes for the differences. Are there any upgrades to the FSBO home, like a new roof or a remodeled kitchen? That makes the price go up. Does it need work like fixing the foundation or replacing the HVAC system? That makes the price lower. Be honest about how things are. Sellers who sell their homes without an agent (FSBO) often think their home is in better shape than it really is because they are emotionally attached to it. Don't just look at sold homes; look at active listings as well. If homes that are similar to yours have been on the market for 90 days at prices that are close to yours, that means the market thinks those prices are too high. Lastly, you might want to think about getting a pre-listing appraisal for a few hundred dollars. This lets you get an unbiased expert's opinion on the value before you make an offer. It's especially useful if you want to make a big purchase and want proof that you're not paying too much.
You need a full purchase agreement that lists all the details of your deal, such as the price, the closing date, any contingencies, what is included in the sale, and who pays for what. You need a seller's disclosure form that lists any problems with the property that you know about. The format of this form varies by state. You need a title commitment from the title company that proves the property has clear title. You need a report from a licensed inspector that shows the condition of the property. Your lender should give you a closing disclosure that lists all the final costs and loan terms. If the home was built before 1978, you may also need a lead-based paint disclosure, a HOA disclosure if it applies, a survey showing the exact property lines, and other forms that are specific to your state. Even if your state doesn't require it, I strongly suggest that you hire a real estate lawyer to look over the papers and be there for the closing. You might have to pay $1,000 to $2,000 in legal fees, but they could save you $50,000 in problems later on. If you live in New York, Massachusetts, or Connecticut, where lawyers are required, this choice is made for you. But even in states like Texas or California where you don't have to hire a lawyer, it's worth the money to do a FSBO transaction.
Yes, definitely. Even more so than if you bought with an agent. Before you buy, the inspection is your chance to find out about any problems. FSBO sellers don't have to tell you about problems they don't know about, and a lot of them haven't taken care of their homes as well as they think they have. A professional inspector will look at the roof, foundation, structural parts, electrical systems, plumbing, HVAC, insulation and ventilation, windows and doors, and the grading and drainage of the outside. A full inspection will cost between $300 and $500. If you're buying an older home or one that has problems, you might want to get specialized inspections as well, like a termite inspection, a septic inspection, a chimney inspection, or mold testing. The inspection clause in your purchase agreement keeps you safe. If there are serious problems, you can talk to the seller about fixing them, ask for a lower price, or back out of the deal completely. Don't ever give up your right to an inspection to make your offer more appealing. I've seen buyers do this in competitive markets and then find out they needed to spend $30,000 on foundation repairs.
Recent data shows that FSBO deals take longer. FSBO sales take about 95 days on average, while agent-assisted sales take about 75 days. That's almost three weeks longer. There are a number of reasons for this difference. FSBO sellers often set their prices too high at first and then lower them after the home has been on the market for weeks. FSBO homes don't get as much exposure to potential buyers without an agent's network. It might be harder for buyers to see the properties for sale by owners than those listed with agents. When neither side has a lawyer, negotiations can take a long time. If the seller is figuring it out on their own, it takes longer to get the papers ready. That being said, the process can go more quickly if you know the person you're buying from or if both the buyer and seller are motivated and experienced. When both parties knew what they were doing and worked with a good real estate lawyer to handle the paperwork quickly, I've seen FSBO deals close in 30 days.
You should get your earnest money back if the deal falls through during your contingency period, like if the inspection shows major problems or your financing doesn't come through. That's what contingencies are for. Make sure your purchase agreement clearly lists the conditions that must be met and how to use them. If you decide to walk away for reasons not covered by contingencies, you'll probably lose your earnest money. Most of the time, this is between 1% and 2% of the price. The seller keeps that money as payment for taking the property off the market. You can sue the seller for specific performance (making them finish the sale) or damages if they back out without a good reason. But lawsuits cost a lot of money and take a lot of time, so most buyers just give up and keep looking. A clear purchase agreement with contingencies is the best way to protect yourself. This is another reason to hire a real estate lawyer even if you're buying a home without a real estate agent. They'll make sure your contract protects your interests and gives you options if things go wrong.
Yes, you should. There were big changes to commission structures in 2025. When FSBO sellers set the price of their homes, they usually assume that they will have to pay a buyer's agent a commission of 2.5% to 3% of the sale price. That money could be up for negotiation if you don't have an agent. When you talk about your offer, tell them you're not represented and ask for a price drop that matches that. If the seller was going to pay a buyer's agent $10,000 on a $400,000 sale, you could ask for a $10,000 price cut. The seller might not agree to the full amount; they might split the difference or give you partial credit. But you can definitely work out a deal. Some buyers hire a buyer's agent for a lower fee just for the closing and negotiation stages. Instead of the usual 2.5%, you could pay the agent 1%, which would save you money while still getting professional help. A flat-fee buyer's agent is another choice. They charge a set amount, like $3,000, no matter how much the house costs. These flexible arrangements are becoming more common. They can give you professional help for less money than traditional commission structures.
California has some of the most detailed disclosure rules in the country. Sellers must fill out a Transfer Disclosure Statement that includes information about the condition of the roof and the noise levels in the neighborhood. They also have to give a Natural Hazard Disclosure that talks about earthquake zones, flood zones, fire hazards, and other problems with the environment. New York needs detailed statements about the condition of the property. A Residential Real Property Disclosure Report is required in Illinois. It must cover structural, mechanical, and environmental issues. Maine has a lot of rules about what needs to be disclosed, especially when it comes to water and septic systems. On the other hand, Alabama, Arkansas, Georgia, and Virginia all follow a "caveat emptor" approach, which means they don't have to make many disclosures. Texas is in the middle. It needs a Seller's Disclosure Notice, but it's not as detailed as California's. The most important thing is to look up the laws in your state before making an offer. Your real estate lawyer can help you protect yourself by telling you what disclosures you need to make and helping you ask the right questions.
What do I think? Yes, especially if this is your first time buying or you're buying in a state that doesn't require lawyers. In some states, lawyers have to be involved in real estate closings. New York, Massachusetts, Connecticut, Georgia, South Carolina, and West Virginia all require or strongly suggest that lawyers be involved. You don't have to make a choice in these states. Even in states where lawyers are not required, the $1,000 to $2,000 you will spend on a FSBO transaction is well worth it. A real estate lawyer will go over the purchase agreement, make sure all required disclosures are made, look over the title work and find any problems, go to the closing and explain the documents, and protect your legal rights the whole time. If you don't have an agent, your lawyer is your main professional advocate. They know state law, have seen hundreds of deals, and know what problems to look for. You could think of it as insurance. You're getting something that is worth hundreds of thousands of dollars. It makes sense to spend 0.5% of that money on legal protection. Also, if something goes wrong, like the seller not telling you about problems they knew about, your lawyer can help you get what you want. That is worth a lot more than what you have to pay up front.
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