Blog > Selling Your Home? 5 Risks of Going For-Sale-by-Owner (FSBO)

Selling Your Home? 5 Risks of Going For-Sale-by-Owner (FSBO)

by New Heights KC

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Red "For Sale by Owner" sign in front of a light-colored house with a porch.

Selling Your Home? 5 Risks of Going For-Sale-by-Owner (FSBO)

In recent months, there has been an uptick in homeowners considering selling their homes without a real estate agent, otherwise known as For-Sale-by-Owner (FSBO). A major factor contributing to this trend is the buzz around changes in how real estate agents are compensated, specifically in the wake of the National Association of REALTORS® (NAR) commission lawsuit. The legal shifts related to buyer’s agent commissions have left many sellers rethinking whether paying a commission is necessary. But while FSBO might seem like a way to save money, it often leads to more headaches and expenses than anticipated.

Reason #1: Pricing Your Home Accurately is Harder Than It Seems

One of the most significant challenges for any homeowner trying to sell their property independently is setting the right price. While it may be tempting to search for recently sold homes in your area and pick a number based on that, pricing is far more complex. Real estate agents have access to comprehensive market data, recent sales trends, and in-depth insights into what buyers are willing to pay for properties like yours.

Overpricing your home can result in it sitting on the market for far too long, leading to a stale listing that deters potential buyers. Conversely, underpricing your home could mean leaving thousands of dollars on the table. A skilled agent works with you to find the sweet spot, ensuring your home is competitively priced while still maximizing profit.

FSBO sellers often fall into emotional pricing traps, where sentiment about the home’s history influences their judgment. This disconnect between what the homeowner thinks the house is worth and what buyers are willing to pay can result in longer sale times and, ultimately, frustration.

 

Reason #2: The Legal Risks Can Be Overwhelming

 
Real estate transactions are complex legal matters. Without an experienced professional guiding the process, you risk missing key documents, deadlines, or disclosures required by law. Incomplete or inaccurate paperwork could lead to legal disputes down the line, which could cost far more than any commission you were trying to avoid.

Real estate agents are well-versed in the nuances of contracts, contingencies, inspections, and disclosures. They understand the importance of crossing all the legal "T's" and dotting the "I's" to protect you from future liability. While many FSBO sellers assume they can figure it out on their own or consult an attorney when necessary, the layers of paperwork and legal requirements are often too overwhelming to manage independently.

With the growing number of legal changes, particularly following the NAR commission lawsuit, it’s even more important to stay on top of the latest regulations. A real estate agent ensures that every part of the transaction complies with federal, state, and local laws.

Reason #3: You Miss Out on Maximum Exposure

One of the biggest misconceptions about FSBO is that the internet makes it easy to list and market a home. While it’s true that homeowners can use online platforms to advertise, they still lack the reach and network that a real estate agent provides.

Real estate agents have access to the Multiple Listing Service (MLS), which gives your home exposure to a vast pool of buyers, including agents working with clients specifically looking for a property like yours. Furthermore, agents have established relationships with other industry professionals, such as mortgage brokers, inspectors, and stagers, all of whom can help streamline the process and ensure the property gets noticed.

FSBO sellers, on the other hand, rely solely on their own marketing efforts, which typically lack the professional polish and widespread visibility necessary to attract qualified buyers. Without this network, it becomes far more challenging to drum up the same level of interest. Agents know the best channels, platforms, and strategies to reach a wide audience, ultimately getting your home sold faster and often at a higher price.

Reason #4: Negotiating is More Complex Than It Seems

Negotiating the sale of your home can be one of the most stressful parts of the selling process. Real estate agents are skilled negotiators who have honed their techniques over years of experience. They know how to navigate tricky conversations about price, contingencies, repairs, and more.

When you're selling your own home, you may not be prepared to handle multiple offers, lowball bids, or buyers who demand extensive repairs after an inspection. There’s also the emotional aspect of negotiations to consider. A homeowner who is deeply attached to their home might feel slighted by a low offer and either reject it or react emotionally in a way that hurts the deal.

A professional real estate agent serves as a buffer, keeping negotiations objective and focused on securing the best possible outcome for both parties. They also know how to avoid common negotiation pitfalls that FSBO sellers often fall into. When selling on your own, it’s easy to give away too much during the negotiation phase or agree to terms that may not be in your best interest simply because you're eager to close the deal.

With the potential changes to commission structures, many sellers think cutting out the agent will give them more negotiating power. However, that’s rarely the case. Agents bring value by understanding what both buyers and sellers want and ensuring the terms of the deal are fair and beneficial for you.

Reason #5: You’ll End Up Spending More Time and Money Than You Think

One of the biggest motivations for FSBO is to avoid paying a commission to a real estate agent. While it might seem like a money-saving move upfront, most FSBO sellers find that they end up spending more in the long run.

For starters, marketing your home effectively costs money. You’ll need professional photos, staging, signage, and online listings to attract buyers. Then there’s the time commitment. Showing the home to potential buyers, scheduling inspections, and handling paperwork can quickly become a full-time job. When you sell your own home, you’re on the hook for every part of the process, from start to finish.

According to the National Association of REALTORS®, homes sold through FSBO typically sell for significantly less than homes sold through agents. The lack of market knowledge, limited exposure, and inexperienced negotiation often result in a lower sale price, which negates any savings you might have realized by not paying a commission.

It’s also important to remember that while some recent legal changes may adjust how commissions are structured, it doesn’t mean that skipping out on an agent entirely is a good idea. Real estate agents do much more than just secure a buyer—they ensure the entire transaction is seamless, legally sound, and profitable.

Conclusion: Trust the Experts

While the idea of saving on commissions might tempt you to try selling your home on your own, the potential pitfalls often outweigh the benefits. Pricing, legal issues, marketing, negotiations, and time are just a few of the challenges that come with FSBO. And in a market where commission structures are evolving, now more than ever, it’s critical to have a professional on your side to navigate the complexities of the home-selling process.

The recent buzz around agent commissions may have sparked more interest in FSBO, but the value of a knowledgeable, experienced real estate agent is undeniable. With their help, you’ll not only avoid common pitfalls, but you’ll also likely sell your home faster and for a better price. If you're in the Kansas City Metro and need a trustworthy real estate agent, contact our team to have your questions answered today!

 


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