Why Americans Sell FSBO | Profit Potential | Speed of Sale | Home-Seller Regrets | FSBO Challenges | Deciding How to Sell | Realtor Grievances | Costs of Selling a Home
💰 Do home sellers make more money with or without a Realtor in 2024? 💰
Despite having to pay commission, sellers who used a real estate agent to sell their home earned a profit of $207,500 — $79,000 more than the $128,500 sellers who did not hire an agent made.
The outlook for home sellers has changed dramatically since 2021, when unprecedented demand for homes led to rapid sales for top dollar.
Now, rising mortgage rates have made affordability a key concern for buyers, requiring sellers to be more flexible with pricing and concessions. Yet sellers have struggled to adjust their expectations to match new market conditions. About 33% of recent home sellers say the selling process was harder than expected.
Although a real estate agent can help homeowners manage their expectations and take the stress out of selling, many sellers hope to salvage their profit by listing without an agent to avoid paying commission.
Instead, many sellers opt for a non-traditional method, such as:
- Selling FSBO, or for sale by owner (24% of sellers who didn't use an agent)
- Selling to a cash home buyer or investor (23% of sellers who didn't use an agent)
- Selling to an iBuyer (18% of sellers who didn't use an agent)
- Paying for a flat-fee MLS listing (12% of sellers who didn't use an agent)
Selling without an agent may initially seem like a good idea, but it usually ends up being more work for less profit. Sellers who did not use an agent (47%) are nearly 2x more likely than those who did (25%) to be unhappy about the method they used to sell their home.
Meanwhile, agent-represented sellers (83%) are 48% more likely to be satisfied with the overall home-selling experience than unrepresented sellers (56%).
In the end, 54% of non-traditional sellers wish they had used a real estate agent.
🏡 For Sale by Owner Statistics
- Those who didn't use an agent are nearly 2x more likely to be unhappy about the method they used to sell their home, and 54% wish they had used an agent.
- Among sellers who sold without an agent, the most common reason for doing so was to save on Realtor fees and commission, but 80% of unrepresented sellers don't actually know the average commission rate.
- 58% of sellers who did not hire an agent say they'd accept $15,000 or more below asking price to avoid selling with an agent, even though they'd pay just $12,000 in commission if a Realtor charged them the average rate on the median-price home.
- Half of non-traditional sellers (50%) say they'd be more likely to use an agent on their next home sale if they didn't have to pay the buyer's agent's commission.
- Sellers who did not use an agent (51%) are 64% more likely than sellers who did use an agent (31%) to say they did not sell for their desired profit.
- Sellers who used an agent earned a profit of $207,500 — $79,000 more than the $128,500 sellers who didn't use an agent made.
- Sellers who used an agent (81%) are 43% more likely to be satisfied with the selling price of their home than sellers who didn't use an agent (57%).
- Nearly half of FSBO sellers (49%) wish they had priced their home differently, while 73% of represented sellers think their agent priced their home correctly.
- More than half of unrepresented sellers (53%) say buyers didn't trust them because they didn't have an agent.
- 80% of sellers who did not use an agent have regrets about their home sale, with sellers most likely to wish they had received more offers (24%).
- Nearly half of sellers (46%) turned down an offer that ended up being their highest.
- 87% of non-traditional sellers would be willing to switch to an agent at some point, with 51% saying they'd hire an agent within two months of not receiving any reasonable offers.
- Most people have a good experience with their real estate agent, but 45% say their agent only cared about making a sale, 43% say their agent made mistakes with their listing, and 35% say their agent failed them.
80% of FSBO Sellers Don't Know the Average Commission Rate
Home sellers are slowly coming to terms with a sobering new reality: Buyers don't value their homes like they used to. With high mortgage rates limiting how much home shoppers are willing to pay, sellers are left wondering how to squeeze every last penny of profit from their transaction.
For some sellers, that means forgoing a traditional real estate agent and pocketing the money they would have spent on commission.
In fact, 81% of sellers say avoiding high real estate agent commission is an important priority, especially when 59% think agents are overpaid for what they do.
It's no surprise, then, that among sellers who sold without an agent, the most common reason for doing so was to save on Realtor fees and commission.
Real estate agent commission can take a serious chunk out of sellers' earnings. With the average listing agent charging a commission rate of 2.83%, that equates to more than $12,000 on the median-priced home.
Ironically, more than half of FSBO sellers say they'd be willing to lose more than that amount to avoid working with an agent. About 58% say they'd accept at least $15,000 below asking price to avoid paying commission.
However, sellers might reconsider how much they're willing to lose if they had a better understanding of agent commission.
Typical agent fees for the buyer's and seller's agent total between 5% to 6% of the final home sale price, but 74% of recent home sellers don't know the average commission rate. That number jumped to 80% among FSBO sellers. Of those, 1 in 3 sellers (33%) guessed too high, believing agent commissions cost more than 7%.
Although commission costs less than some sellers expect, they are increasingly fed up with the traditional 6% commission model. About two-thirds of sellers (66%) don't think they should be responsible for the buyer's agent commission.
Sellers received relief in August, when a ruling stipulating they are no longer required to pay the buyer's agent's commission went into effect. Half of FSBO sellers (50%) say the move will make them more likely to use an agent on their next home sale.
At the same time, 65% think future sellers won't need agents for real estate transactions, with 68% saying they'd be willing to use AI to sell their homes.
Sellers Who Used an Agent Made $79,000 More in Profit Than FSBO Sellers
Every homeowner starts the home-selling process with different priorities, but making the most money from their sale tends to be the most common. About 84% of sellers say it's an important priority, with 50% saying it's very important.
Although FSBO sellers may think they're increasing their profit margin by forgoing an agent and saving on commission fees, they could actually cost themselves tens of thousands of dollars by doing so.
Sellers who used an agent earned a profit of $207,500 — $79,000 more than the $128,500 sellers who did not use an agent made.
Most sellers, however, experienced disappointment with their earnings — especially in light of the big bucks sellers made in the post-pandemic market.
Nearly two-thirds (62%) say their home did not sell for their desired profit. Of those, unrepresented sellers are 64% more likely than represented sellers (31%) to say their home did not sell for their desired profit.
Many factors determine a seller's profit — including a home's size, condition, and location — but one of the most important factors is the listing price. If the price is too low, sellers leave money on the table. If the price is too high, the home may fail to attract buyers and linger on the market.
Real estate agents have extensive knowledge of the market and can help sellers set a realistic price that will earn them the most money. For those without an agent, a home valuation is one of the best tools to gauge a home's worth, but 44% opted not to get one before listing their home.
This lack of knowledge and research could be why 49% of unrepresented sellers wish they had priced their home differently. Meanwhile, 73% of represented sellers think their agent priced their home correctly.
Overall, homes sold with an agent had a final sale price $70,000 higher than homes sold without an agent. It should come as no surprise that sellers who used an agent (81%) are 43% more likely to be satisfied with their home's selling price than those who didn't use an agent (57%).
Although homes sold with an agent tend to sell for more, those sellers may still have had to reduce their asking price in this difficult market. About 54% of all sellers report reducing their price, including 35% who say it kept them from making their desired profit.
Among those who sold below asking price, FSBO sellers had to reduce their price more. Unrepresented sellers report a reduction of $67,000, compared to $56,000 among represented sellers — an $11,000 difference.
With represented sellers coming out on top in every price metric, nearly half of FSBO sellers (47%) think they would have sold for more money if they'd used an agent.
Nearly Half of FSBO Sellers Think Their Homes Would Have Sold Faster With a Real Estate Agent
Selling their home as quickly as possible was an important priority for 80% of sellers.
Selling with a real estate agent has many advantages, but it can sometimes take longer than a non-traditional sale. That's why 29% of unrepresented sellers decided not to use a real estate agent.
In fact, those who did not use an agent (24%) are 2x more likely than those who did (11%) to sell their house in less than one week.
However, the length of the sale depends heavily on the method homeowners use to sell their home. Selling to an iBuyer, for example, streamlines the transaction by providing immediate offers and eliminating the traditional listing, showing, and negotiating process.
About 42% of FSBO sellers sold to a friend or family member, allowing them to bypass the time-consuming process of marketing, staging, and finding buyers.
Yet the trend of selling quickly reverses within a few weeks, and it becomes slightly faster to sell with an agent. Unrepresented sellers are 2% more likely than represented sellers to wait longer than one month to sell their home and 9% more likely to wait more than three months.
In the long run, an agent's expertise and marketing resources appear to pay off. Agents also provide a familiarity that FSBO sellers may lack. More than half of unrepresented sellers (53%) say buyers didn't trust them because they didn't have an agent — perhaps causing buyers to hesitate before entering into a deal.
Overall, 83% of sellers who used an agent are satisfied with the time it took to sell their home, compared to just 54% of sellers who didn't use an agent. In hindsight, 48% of non-represented sellers think their home would have sold faster had they used an agent.
80% of FSBO Sellers Have Regrets
Many sellers have high expectations for their sale, but as power in the real estate market shifts back toward buyers, it's proven difficult for sellers to adjust.
Sellers who used an agent (82%) are just as likely to have regrets as sellers who did not use an agent (80%), but the two groups tend to feel remorse about different aspects of their sale.
The most common regret among FSBO sellers is wishing they had received more offers (24%).
It can be difficult to attract buyers without an agent's access to the MLS and professional marketing experience, which often results in fewer offers for FSBO sellers.
Unrepresented sellers (49%) are nearly 2x more likely than represented sellers (28%) to say they did not receive multiple offers. Among those who did receive multiple offers, non-represented sellers are 40% more likely than represented sellers to have received fewer than three.
Causing even more regret, 46% of all sellers turned down an offer that ended up being their highest.
FSBO sellers also regret that:
- The buyer got the better end of the deal (24%)
- They struggled to time their home sale with their home purchase (23%)
- They didn't wait to list their home until the market was better (22%)
- Their house took longer to sell than expected (22%)
- They received less than asking price on their home (21%)
Regrets among represented sellers are noticeably different from those without an agent.
Interestingly, not getting enough offers is the least-cited regret among represented sellers, with just 19% saying they didn't get as many as expected.
Instead, their top regrets are:
- Their agent didn't negotiate enough on their behalf (33%)
- They should have made more repairs before listing (33%)
- They paid more in repair credits and closing costs than expected (28%)
- They thought the buyer got the better end of the deal (28%)
- They made more concessions than they were comfortable with (28%)
Nearly 9 in 10 FSBO Sellers Would Consider Hiring an Agent During Their Next Sale
Selling a home is not an easy process, and 85% of home sellers faced challenges during the process. Some of the most common challenges include:
- Generating interest and getting buyers to make offers (30%)
- The paperwork that's involved when selling (30%)
- Getting the house ready to show (30%)
- Evaluating offers (29%)
- Coping with the uncertainty of the market (29%)
- Pricing their home (28%)
- Negotiating with buyers (26%)
- Arranging open houses and showings (22%)
A real estate agent can take on or share many of these responsibilities, but FSBO sellers are often on the hook for these tasks. That usually results in a lot of work, and 50% of unrepresented sellers say they felt overwhelmed when selling their home.
Selling without a real estate agent may initially sound like a good idea, but many sellers come to realize they're in over their heads. About 87% of FSBO sellers would be willing to switch to an agent at some point, with 51% saying they'd hire an agent within two months of not receiving any reasonable offers.
Still, 57% of FSBO sellers who persevered say it was worth the extra work to save money by not using an agent.
Besides the workload, sellers often struggle with the insider knowledge needed to complete a real estate transaction on their own.
Although 48% of FSBO sellers think they know as much about selling a home as a real estate agent, 60% did not read and understand the entire purchase agreement during their home sale. Another 43% made legal mistakes by not using an agent.
Half of Represented Homeowners Considered Selling Without an Agent
Saving thousands of dollars by forgoing a real estate agent can be tempting when deciding how to sell a home. In fact, among those who hired an agent, 51% considered selling without an agent.
More than half (52%) considered using a flat-fee MLS service, while more than one-third (35%) considered selling FSBO without an MLS listing.
Another 40% thought about selling to a cash buyer or investor, while 29% considered selling to an iBuyer. However, those buyers typically offer below market value for homes. With 84% of sellers wanting to earn the most money from their sale, many decided to try their luck with an agent on the open market.
Of those who eventually decided to sell with an agent, sellers expressed a desire for more professional guidance and support (45%). Other reasons for the change of heart include:
- A desire for a smoother and faster sale (44%)
- A belief that an agent could achieve a higher sale price (44%)
- A lack of time to manage the sale themselves (43%)
- A desire for professional marketing and advertising (43%)
Overall, 75% of sellers are satisfied with their agent, and 71% would use that agent again to sell another home.
What's more, 82% say a good agent is worth every penny of the commission they charge — likely because they make the process much smoother and less stressful for sellers. Homeowners who used an agent (32%) are 21% more likely than those who did not (26%) to say the home-selling process was much easier than expected.
1 in 3 Sellers Who Used a Realtor Say Their Agent Failed Them
Although most sellers are happy with their decision to use a real estate agent, not everyone had a good experience.
The most common complaints sellers had against their agents include:
- Their agent botched negotiations (49%)
- Their agent was only looking to make a sale instead of caring about their clients' best interest (45%)
- Their agent pressured them into making decisions they weren't comfortable with (43%)
- Their agent made mistakes with their listing (43%)
- Their agent ignored them (42%)
- Their agent annoyed them (41%)
- Their agent failed them (35%)
More Than 80% of Sellers Experienced Unexpected Costs When Selling Their Home
Even for sellers who save on commission by forgoing a real estate agent, selling a home is expensive. Americans report spending nearly $55,000 on home-selling expenses — many of which come as a surprise to unsuspecting homeowners.
About 82% of all sellers had surprise expenses when selling their home, but FSBO sellers are likely to experience more. Sellers who did not hire an agent (27%) are 2x more likely to report unexpected costs than those who did (13%).
Represented sellers often encounter fewer unexpected expenses because many service costs are bundled into their agent's commission. Additionally, real estate agents educate their clients on extra costs, helping them be better prepared.
The most common unexpected expenses include:
- Moving expenses (33%)
- Repairs requested by the buyer after the home inspection (32%)
- Transfer taxes or fees (31%)
- Closing costs (30%)
- Legal fees (30%)
Overall, unexpected costs can eat away at sellers' profit and leave them feeling disappointed. More than 1 in 4 sellers (26%) are not satisfied with the cost of selling their home.
Methodology
Clever Real Estate surveyed 654 American adults who sold a home in 2023 or 2024 to find out their home-selling experiences, including whether they used an agent. The survey was conducted from July 25, 2024, to Aug. 6, 2024.
About Clever
Since 2017, Clever Real Estate has been on a mission to make selling or buying a home easier and more affordable for everyone. 12 million annual readers rely on Clever's library of educational content and data-driven research to make smarter real estate decisions—and to date, Clever has helped consumers save more than $160 million on realtor fees. Clever's research has been featured in The New York Times, Business Insider, Inman, Housing Wire, and many more.
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FAQs
What is the most common reason owners try to sell their homes themselves?
Nearly 1 in 3 homeowners (30%) who sold without an agent did so to save on Realtor fees and commission, making it the most common reason to forgo an agent. Learn more.
What percentage of FSBO sellers eventually list with an agent?
About 87% of FSBO sellers would be willing to switch to an agent at some point, with 51% saying they'd hire an agent within two months of not receiving any reasonable offers. Learn more.
Do you make more money selling with or without a real estate agent?
Sellers who used an agent earned a profit of $207,500 — $79,000 more than the $128,500 sellers who did not use an agent made. Learn more.