What does it mean if a house is for sale by owner?

Here's an explanation for When a house is for sale by owner (FSBO), it means the homeowner is selling the house without the help of a real estate agent. The most common reason someone would opt to sell their home on their own is because they want to save money on Realtor fees.

Should you buy a house for sale by owner?

For sale by owner works best for sellers who already have a buyer in mind. In most cases, you’ll still need to pay a real estate agent commission (3%) to the buyer’s agent on the sale of your home. Only licensed real estate agents can post to the MLS, but you can post to websites like Zillow and ForSaleByOwner.com for free.

How much does a for sale by owner home cost?

For sale by owner homes typically sell for less than the selling price of other homes. According to a report from the National Association of REALTORS, for sale by owner homes sold at a median of $217,900 in 2020, compared with a median of $295,000 for agent-assisted homes. That’s a loss of $77,100, or about 26%.