FSBO vs. Realtor vs. cash buyer: which way should you sell?

You can sell a house without a Realtor in every state, though some states require or customarily use a real estate attorney for the closing. The real choice is among three routes: selling it yourself, known as for sale by owner or FSBO, where you do the agent's work to save the commission; listing with an agent, which usually reaches the most buyers; and selling directly to a cash buyer, which trades price for speed and no repairs. None of them wins everywhere. The right one depends on your home's condition, your local market, your timeline, and how much of the work you want to take on.

What are the three ways to sell a house?

• For sale by owner. You skip the listing agent's commission and take on pricing, marketing, showings, negotiation, and managing the contract to closing. You may still pay a buyer's agent if the buyer has one.
• Listing with an agent. You pay a commission, and the agent handles pricing, exposure on the multiple listing service (MLS), negotiation, and coordination through closing. Total commissions have usually landed between 4.5 and 6 percent of the price, split between the two sides, and every part is negotiable.
• Selling to a cash buyer. There is typically no commission, no repairs, and no showings, and closing can happen in weeks. The offer is usually below the top of your open-market range, because the buyer prices in repairs, risk, and its own costs.

The National Association of Realtors' annual Profile of Home Buyers and Sellers has found for years that only a small share of sellers sell by owner. Most use an agent.

How does selling a house by owner work?

1. Price it from evidence. Start with an online estimate for the range, then study recent comparable sales. A pre-listing appraisal is worth considering when comparable sales are thin or your home is unusual.
2. Prepare disclosures: any seller disclosure form your state requires, plus the federal lead-based paint disclosure for most homes built before 1978.
3. Market it. Good photos, a clear description, and ideally a flat-fee MLS listing, where a licensed brokerage puts your home on the MLS for a set fee so it reaches buyers and their agents.
4. Show it and screen buyers. Handle showings and open houses yourself, and ask every buyer for a mortgage pre-approval or proof of funds before you take an offer seriously.
5. Negotiate and sign. Use a purchase contract suited to your state, such as a state-approved form where one exists, or have a real estate attorney draft or review it.
6. Close. A title company, escrow company, or closing attorney handles the money, the payoff of your loan, and the deed transfer.

Do you pay a buyer's agent if you sell by owner?

Possibly. Many buyers work with an agent, and since the 2024 industry settlement, buyers sign a written agreement with their own agent that spells out what the agent earns. Sellers decide what, if anything, to offer toward the buyer's agent, and nothing is automatic. If you offer nothing, a buyer may ask for it as part of the offer or pay their agent themselves. Decide your approach before you list, because it can affect how many agent-represented buyers will consider your home.

How much can you save by selling without an agent?

Usually less than the full commission, and sometimes nothing. Work it out this way:

• Start with the listing-side commission you would avoid.
• Subtract what you take on: a flat-fee MLS listing, photography, signs, attorney fees, and any buyer's agent compensation you choose to offer.
• Subtract any difference in price. An agent's pricing, marketing, and negotiation may produce a higher sale price, or a faster sale that saves carrying costs. That difference is hard to know in advance, so estimate it conservatively.

Be skeptical of any single figure claiming that FSBO or agent-assisted sales come out ahead. The homes and sellers in those comparisons are not the same, so the averages say little about your house.

When does each option make the most sense?

Selling by owner fits when

• You already have a buyer, such as a tenant, a relative, or a neighbor.
• Homes like yours are selling quickly where you live, and yours is easy to price.
• You have time, you are organized, and you are comfortable negotiating and managing paperwork.

Listing with an agent fits when

• You want the widest exposure and the highest realistic price.
• Your home is in good condition and priced where plenty of buyers are shopping.
• Your market is slower, or you would rather not handle showings and negotiations yourself.

Selling to a cash buyer fits when

• The home needs major repairs you do not want to fund.
• You have a deadline, such as a relocation, a divorce, or two mortgages to carry.
• The home is inherited, tenant-occupied, or far away, and certainty matters more than the last dollar.

How do you decide which route nets the most?

Estimate the net for each route on the same sheet: expected price, minus commissions or buyer's agent compensation, minus closing costs, minus prep and carrying costs, minus any fees. Then weigh the results against time and risk. A route that nets slightly more but takes months longer and carries a real chance of a failed deal may not be the better choice for you. Our guide to calculating net proceeds walks through each line.

Whichever route you choose, start with a number. Enter your address to see your estimated value and a cash offer side by side, and if you want an agent, we can connect you with a licensed local pro, free and with no obligation.