FSBO vs. Hiring a Realtor: Real Cost Comparison

Selling without an agent to avoid commission sounds appealing—but several costs are often overlooked.

Pros

✔ You keep the seller agent’s commission (typically 2.5%–3%)

✔ Full control over pricing, marketing, and negotiation

✔ Personal involvement from start to finish

Cons & Real Costs

💸 1. Limited Exposure

• Homes listed “without agent” often get less attention

• Many buyer agents won’t show FSBO listings because they worry about commissionResult: Fewer showings, fewer offers

💻 2. Marketing Costs

You handle or pay for:

• Professional photography

• MLS listing through flat-fee services

• Signage, flyers, online adsTypical Cost: $300–$1,200+

🧠 3. Paperwork & Legal Risks

Real estate contracts are complex.

• Mistakes can cost thousands or lead to legal troubles

• You may need attorney review ($500–$1,500+)

📊 4. Pricing Challenges

Without local market expertise:

• You may overprice and scare buyers

• Or underprice and lose money

A small pricing mistake can cost more than a commission.

📉 5. Negotiation Disadvantage

Buyers and their agents may negotiate harder knowing you’re inexperienced.

🧑‍💼 Hiring a Realtor

Agents cost money—but many sellers get more money and faster sales net of costs.

Typical Costs

✔ Seller pays a total commission ~5%–6% (split between buyer & seller agents)

✔ Commission is paid only at closing if the home sells

What You Get

🔍 1. Market Pricing Expertise

Your agent:

• Performs a comparative market analysis (CMA)

• Pricing strategically to attract multiple offers

This often results in higher sale price.

🏙 2. MLS & Marketing Power

Agents list on the MLS, and often include:

✔ Professional photos

✔ Virtual tours

✔ Syndication to Zillow, Realtor.com, etc.

✔ Targeted social and email marketing

Exposure = more buyers = stronger offers.

👥 3. Buyer Agent Network

Agents have networks and relationships that help get your home in front of active buyers fast.

🤝 4. Negotiation Skills

Experienced agents can often:

• Raise your offer price

• Lower contingencies

• Avoid costly deal blow-ups

Negotiation adds real value.

📋 5. Transaction & Legal Protection

Agents manage:

• Contracts

• Disclosures

• Deadlines

• Title and closing coordination

This protects you legally and financially.

📊 Cost Comparison (Example on a $500,000 Sale)

Cost Type	FSBO	With Realtor
Listing Commission	$0	$25,000–$30,000
Buyer Agent Commission	$0	Included above
MLS/Marketing	$500–$1,200	Included by Agent
Attorney Review (if used)	$500–$1,500+	Often not needed
Net Sale Price	Variable	Often higher due to better pricing & exposure

Net Result:A Realtor’s expertise can easily make up for the commission through:

• Higher sale price

• Fewer concessions

• Faster sale

🧠 Real-World Findings

Studies consistently show that:

✔ Homes sold with agents tend to fetch higher prices net of commission

✔ FSBO homes often take longer to sell

✔ FSBO sellers may sacrifice exposure and negotiation leverage

🔑 So What’s Best for You?

FSBO may make sense if:

• You have real estate experience

• You have strong marketing and negotiation skills

• You’re comfortable handling legal documents

A Realtor often makes sense if:

• You want maximum exposure and expert pricing

• You value negotiation experience

• You want support through process and paperwork

🏁 Bottom Line

Saving on commission doesn’t always save you money.The right agent can help you sell faster, with less stress, and often for more money—even after paying commission.