How to sell a house by owner: A step-by-step guide

When you sell your home, it’s natural to want to earn the biggest profit you can. To help keep as much of that money in their pocket as possible, some intrepid homeowners decide to sell without the help of a real estate agent — which saves them having to pay an agent’s commission fee.

Known as a “for sale by owner” listing, or FSBO for short, selling a house without a Realtor requires time, ambition and drive, says Sissy Lappin, a Houston-based real estate broker and author of “Simple And Sold,” a guide for FSBO sellers.

FSBO can lead to huge savings when you eliminate the commission fee for real estate agents, which typically runs between 2.5 and 3 percent of the home’s final price for each agent involved. On a $300,000 home, that could add up to $9,000 per agent. (It used to be that the seller paid the commission not just for their own agent but for the buyer’s agent as well — these days, the buyer may be responsible for paying their own agent, depending on the details of your specific deal.)

However, homeowners who are wondering how to sell a house by owner should also understand that it’s quite a lot of work for an amateur to do on their own. Everything that a professional agent would normally do becomes your responsibility, from pricing to marketing to contract negotiations. Preparing for what’s ahead can help you successfully net the most money at closing: Here’s a step-by-step guide.

How to sell a house by owner: 5 steps to follow

1. Set a realistic price

Pricing a home right from the get-go is crucially important, whether you sell with or without an agent. If you price your home too high, you might discourage potential buyers from even taking a look at it.

To get a sense of your home’s value, evaluate local comps. Essentially, that means looking for similar homes that have recently sold in your area. Finding out how much those homes were asking, and how much they actually sold for, will give you a good sense of market values in your area.

You can also use property-search websites to find information about recently sold properties. But be careful of relying too heavily on these sites’ estimates of your home’s value — the prices can be inaccurate and might not take important details into consideration.

For the most accurate valuation, consider scheduling a professional home appraisal. It will likely cost a few hundred dollars, but it will give you the best estimation of how much your home is worth.

2. Get your home market-ready

When you sell a home by owner, you’ll need to get it in tip-top shape for listing photos and showings. Here are some tips for prepping your home for sale:

• Declutter: “We all have emotional attachment to our homes and the things in them,” says Debreen Oliva of D.O. Organize in Saratoga Springs, New York. “But once you decide to sell it, your house is no longer a home. It’s a product on the market. Spend the time and some money on staging so you make the best impression on potential buyers.”
• Make it sparkle: If your budget allows, consider hiring a cleaning crew to do a deep clean, Lappin says. A little Windex here and a little Pledge there might help bring in more money.
• Add curb appeal: First impressions are everything, and your home’s exterior should be immaculate. Pull weeds, add fresh mulch and store toys or bikes out of sight. Consider adding a few pots of colorful flowers on the entryway or porch — a fresh coat of paint to the front door and a new welcome mat are nice finishing touches.
• Hire a professional photographer: Displaying professional photos online is a must to draw buyers in, Lappin says. A real estate photographer can vary in price depending on your location and the size of your home, but expect to spend a few hundred dollars. Some photographers may also provide virtual tours to include on the listing.

3. Promote, promote, promote

When your house is pristine, your price is set and your photos are taken, it’s time for marketing. Post the photos, along with a writeup explaining the home’s key details and features, on social media sites, and ask people to share the posts with those who might be interested. (Be cautious about how much info you give away online, though, especially if your family is still living there.) “And don’t underestimate a great sign in your yard,” Lappin says. “People drive through neighborhoods they want to live in.”

To reach even more potential buyers, look into listing your home on your area’s local multiple listing service (MLS). This is typically available only to real estate pros, but there are many online companies that will post your FSBO listing there for a fee (the cost varies widely).

Finally, schedule an open house for potential buyers during a weekend afternoon and be sure to promote the date and time. An open house provides buyers with the perfect opportunity to see your home up close in a setting that’s more casual than a one-on-one showing. “People like to be under the radar and have no pressure,” Lappin says. It’s smart to print out out listing sheets showing the key details of your home so attendees have something to take with them and a way to contact you to schedule a follow-up — or make an offer.

4. Confirm the buyer’s financials

Hopefully, you’ll receive an offer! When you do, you’ll need to confirm whether the buyer can really afford your home. Ask all buyers who make an offer to provide a mortgage preapproval letter, Lappin says. As a seller, you also have the right to call the lender, but Realtors do not, she adds.

Find out how much of a down payment the buyer is offering, what loan program they’re using and how much they’re qualified to borrow from a lender. If a buyer has conditional loan approval, find out what types of conditions they have to meet to secure final approval.

5. Consider using an attorney

Some states legally require that an attorney oversee the sale of a house, whether agents are involved or not. Many do not require attorneys, but even if a lawyer is not mandatory in your state, hiring one is money well spent — especially for FSBO sellers.

“If you’re going to attempt to sell your home without a Realtor, I would highly suggest engaging a real estate attorney to help you with a purchase and sale contract,” says Mark Cianciulli, who is both an attorney and a Realtor at the CREM Group in Los Angeles.

“A real estate attorney can prevent a seller from making mistakes and/or incurring liability,” he says. For example, an attorney can help you evaluate offers, draft closing documents, advise on disclosures and ensure the legal side of the sale runs smoothly. “If I were selling by myself, I would definitely want an attorney representing me in the sale,” Cianciulli says.

Pros and cons of selling by owner

There are advantages and disadvantages to selling a house without a Realtor. Here are some key points to think about before you get started:

Pros

• You don’t pay a commission fee: FSBO sellers keep more of their profits after closing because they don’t have to shell out money for a listing agent’s commission fee. This averages from 2.5 to 3 percent of the home’s sale price, which means that if you sell for $300,000, you save between $7,500 and $9,000.
• You’re in control: Having no middleman between you and the buyer can simplify the process. It also keeps you in the driver’s seat: You make all decisions yourself and can do things exactly as you like.
• You can move faster: Agents usually juggle multiple clients at once. When you don’t use one, you don’t have to wait for them to call you back or work around their schedule.

Cons

• You’ll need to do a lot of work: Selling a home on your own can be overwhelming. You have to do it all — prepping the home for sale, doing market research to price it correctly, marketing it to buyers, setting up appointments and showings, fielding offers and negotiating contract terms. There’s plenty of paperwork involved, too.
• You have no professional guidance: Real estate agents are licensed pros who have extensive industry networks, deep expertise in their local housing markets and ace negotiation skills. Going without one means losing out on all that.
• You might actually earn less money: According to data from the National Association of Realtors, selling a house without pro help typically leads to a lower sale price. In 2023, it reports, the median sale price of a FSBO home was $380,000, while the median for agent-assisted sales was $435,000.

Should you sell your house by owner?

Selling a house without a pro can save you money. For many people, that’s all they need to hear. But it can also be a bigger and more daunting undertaking than many home sellers anticipate. Some people just don’t have the time, patience or organizational skills to sell their own house, says Adam Upchurch, owner/Realtor at Marvel Real Estate in Wilmington, North Carolina.

Upchurch says many clients have come to him for help after trying to sell their house on their own and running into obstacles. “They have a life. They have jobs and kids, and they can’t approve every appointment or grab the dogs to get them out of the house for every showing,” he says.

If you do decide to hire a real estate agent, look for someone who has several years of experience listing homes in your area, as well as solid referrals from past clients. And keep in mind that real estate commissions are negotiable — even a small discount can equate to hundreds or even thousands of dollars in savings.