Do You Need a Realtor to Sell a House?

Technically, you don’t need a realtor to sell a house, but having one is usually a smart move. On average, homes sold with a realtor sell for $79,000 more than those sold without one.[1]

Sellers who work with realtors not only make more money but also avoid the hassles of selling for sale by owner (FSBO). Their realtors handle time-consuming tasks like marketing, managing open houses, and negotiating with buyers.

Still, there are some situations where selling without a realtor might make sense. In these cases, your options include using a flat fee MLS service and selling to a cash buyer.

If avoiding realtor fees is your primary reason for skipping an agent, consider using a discount broker instead. Discount brokers offer traditional real estate services at lower rates, helping you save thousands while still benefiting from an expert’s guidance.

💡 Want to save money without sacrificing support? We can connect you with top-rated agents who charge a low 1.5% listing fee. Get the expert guidance you need while keeping more money in your pocket. Fill out this quick form and explore your options!

Do I need a realtor to sell my house? Here are 4 key considerations

Most home sellers rely on listing agents. In 2023, 90% of sellers used a real estate agent, up from the year before.[2] This isn't surprising since realtors handle most of the workload to sell a home and help prevent complications.

That said, selling without a realtor might make sense if you:

• Are selling to a friend or relative
• Are selling to a cash buyer
• Have the time and expertise to sell on your own

Whether using a realtor is right for you depends on factors like costs, selling price, workload, and tolerance for legal risk. Let’s look at each of these in more detail.

1. Your costs

About 80% of FSBO sellers say they decided against using a realtor because of realtor fees.[1] The average listing fee in the United States is 2.74%, which is paid out of the sale proceeds at closing.

The listing fee typically covers essential services, including:

• Completing a comparative marketing analysis (CMA) to help price your home
• Preparing your home for sale
• Listing your home on the MLS
• Getting professional photos
• Marketing to buyers and buyer's agents
• Organizing open houses and showings
• Negotiating and fielding offers
• Conducting due diligence
• Assisting with paperwork and closing

If you sell without a realtor, you’ll likely still need to pay for a flat fee MLS service to list your home on the multiple listing service (MLS).

MLS access is crucial since it’s where buyer’s agents look for properties. MLS listings are also syndicated to major sites like Zillow, increasing your home’s visibility — which ultimately helps you sell faster and for a better price.

Flat fee MLS services charge anywhere from a few hundred to thousands of dollars, depending on the level of support. Basic plans typically include only an MLS listing and photos, while full-service packages may offer traditional realtor support, like pricing advice and help with closing.

The cost of a flat fee MLS service will cut into your savings. And homes sold without a realtor sell for $79,000 less on average — a significant loss compared to any potential commission savings.

A better alternative is using a discount broker, which can reduce listing fees to as low as 1.5%. You’ll still get peace of mind from having expert help, but you’ll save thousands in agent commissions.

» Find top-rated agents in your area who charge just 1.5%.

2. Your selling price

If you want the highest selling price, you’re usually better off hiring a realtor. Data shows that 81% of sellers who use a realtor are satisfied with their selling price, compared to just 57% of FSBO sellers.[1]

This difference in sale price is largely due to:

• MLS access: Realtors list homes on the MLS, where they’re seen by more buyers. And more visibility often leads to a higher sale price. One study found that homes listed on the MLS sold for 17.5% more than comparable homes that weren’t on the MLS.[3] If you sell FSBO, you can still list on the MLS through a flat fee MLS company. But you won’t have a professional listing description.
• Accurate pricing: Realtors use market data to price homes effectively. FSBO sellers often rely on less accurate tools like Zillow estimates.

Hans Baker, who sold his house without a realtor, points out how unreliable Zillow is for pricing:

“I'd look at Zillow to see what other houses were going for per square foot, when they sold on Zillow. ... I figured my house was worth about $750 but I listed it for $735,000. But Zillow had it priced at $662,000, because they didn't know that I had finished the basement and added heated/cooled square footage.”

3. Your workload

If you’re a busy person, you may struggle to keep up with the demands of selling a house FSBO. Even before you list it, you’ll need to make repairs and improvements and learn how to stage your home for showings.

Realtors typically handle pricing, writing listing descriptions, marketing, fielding offers, vetting buyers, negotiating, conducting due diligence, completing paperwork, and closing. Plus, realtors often already have a network of agents and potential buyers they can tap to move your sale along faster. Without a realtor, you’ll be starting from square one when finding a buyer.

In terms of marketing, a recent survey of realtors[2] found that the most popular marketing tools were:

• MLS listings (86%)
• Yard signs (61%)
• Open houses (58%)
• Listing on Realtor.com (49%)
• Listing on third-party aggregators (47%)
• Listing on their own website (46%)
• Listing on their brokerage’s website (39%)

While you can access some of these marketing tools yourself, others require an agent. If you sell FSBO, be prepared to put in extra work to market your home.

4. Your legal risk

Selling without a realtor can expose you to legal risks, like scams.

Sarah F. Bandy, Luxury Real Estate Advisor and Licensed Real Estate Salesperson at The Lifestyle Group @Jason Mitchell Real Estate, shared a scam she's seen:

“People would pretend to be buyers, contact the seller, schedule a tour and while touring the home, fall on the stairs, concrete or anything that they could say was the fault of the homeowner. They would then proceed to sue the seller.”

Realtors aren't as vulnerable to this type of scam and other legal risks.

Brandy confirmed that “realtors carry errors and omissions insurance, which means, first, these types of scammers are less likely to try the slip and fall tactic on a home that is listed with a professional and secondly, our E&O insurance covers us and a variety of lawsuits that may occur while a home is under our watch so to speak.”

FSBO sellers can get in legal trouble even when interacting with honest buyers. For example, if you fail to fully disclose defects with your home as required by law, the buyer may hold you responsible and pursue financial compensation. A realtor typically knows what disclosures are required.

How do you sell a house with a realtor (and still save money)?

The national average commission rate for a listing agent is 2.74%. But many sellers don’t realize that commission rates are negotiable or that discount brokers charge as little as 1.5%, which can save you thousands of dollars.

It's difficult to negotiate on your own, so your best bet for saving is working with a discount broker that offers guaranteed lower rates.

These are some of the top national discount brokers:

The top discount brokers offer full support like traditional brokerages and let you choose your own agent.

For example, Clever Real Estate partners with full-service realtors from reputable brands like Keller Williams and RE/MAX. When you find an agent through Clever, you get the same local expertise — but for half the price those same agents would charge if you found them on your own.

Companies that offer low commission can save you thousands of dollars. For example, on a $400,000 home, you could save up to $6,000 by using an agent who charges 1.5% compared to a traditional agent charging 3%.

Regardless of the brokerage, you should always compare multiple agents to ensure you find the right fit.

When comparing agents, Elliott Grozan, Broker Associate at Denovo Realty and a Clever Partner Agent, says the most important qualities to look for are “specific market knowledge, professionalism, pricing expertise, negotiation, broad buyer reach, and expert marketing.”

To compare the top-performing agents in your area, you can fill out a short form and get tailored agent recommendations sent straight to your inbox.

How do you sell a house without a realtor?

If you decide to sell your home for sale by owner, your success depends on the type of buyer you sell to and how you market your home.

If you sell to a friend, a relative, or a cash buyer, then there’s no need to worry about marketing.

However, if you don’t already have a buyer lined up, you’ll have to invest time and money into finding one. We’ll look at a few ways you can sell a house without a realtor.

List with a flat fee MLS company

Flat fee MLS companies list your home on the local MLS in exchange for a flat fee. Since MLS listings get syndicated to sites like Zillow and Realtor.com, they’re an all-but-essential way to market your home.

A basic flat fee MLS plan provides little more than an MLS listing and costs just a couple hundred dollars. If you want more hands-on service that's closer to what traditional realtors offer, you can pay for a premium plan that costs thousands of dollars.

Sell without listing on the MLS

Selling without listing on the MLS is difficult unless you sell to a friend or family member. FSBO statistics show that nearly half of FSBO sellers already have a buyer lined up. If you don’t have a buyer ready, you’ll need to rely on marketing strategies like yard signs and mailers, neither of which tend to attract a large pool of potential buyers.

You’ll also need to market your home online using FSBO websites. You can list for free on Zillow, but FSBO listings have less visibility on Zillow than listings syndicated from the MLS. Your Zillow listing may struggle to compete with nearby properties that are represented by a realtor.

Sell to a cash buyer

Cash buyer companies pay cash for houses and close quickly. Usually, selling to them is easy and doesn’t require a real estate agent. Unlike traditional buyers, they’ll purchase hard-to-sell properties, such as homes that need major renovations.

However, cash buyers typically pay much less than you can get on the open market with a realtor. While the speed and convenience of these companies are appealing, you should first discuss your options with a realtor to see if you could potentially sell faster and for more money by listing on the open market.

FAQ

Related reading