While the number of homes sold directly by owners dipped to 7% last year, the FSBO journey offers a compelling, high-stakes path where success hinges on deep preparation, as savvy sellers saved nearly $15,000 on average but navigated a minefield of pricing, legal, and marketing challenges.
Key Takeaways
- In 2023, 7% of all U.S. home sales were conducted as For Sale By Owner (FSBO), down from 10% in 2022
- FSBO sales accounted for 8% of total home transactions in the Western U.S. region in 2023
- Nationwide, FSBO represented 6% of sales in the Midwest in 2023 according to NAR data
- FSBO sellers saved an average of 2.97% of sale price on commissions in 2023, equating to $15,000 median savings
- FSBO homes sold for 0.5% less on average than agent-listed in 2023
- Average FSBO sale price was $320,000 in 2023 vs $340,000 agent-assisted
- Average FSBO time on market was 2 weeks longer than agent sales at 26 days in 2023
- 50% of FSBO sold within 2 weeks due to known buyers in 2023
- FSBO listings lingered 45 days median without marketing in 2023
- 86% of FSBO sellers were homeowners aged 55+ in 2023
- 52% of FSBO sellers had college degrees in 2023
- Primary motivation for 65% FSBO was avoiding commissions in 2023
- 43% FSBO sellers reported major challenges with pricing in 2023 surveys
- 36% FSBO faced legal paperwork issues leading to 12% failure rate 2023
- FSBO marketing shortcomings caused 25% to convert to agents 2023
FSBO sales declined in 2023, offering savings but posing significant challenges for sellers.
Economic Impact
- FSBO sellers saved an average of 2.97% of sale price on commissions in 2023, equating to $15,000 median savings
- FSBO homes sold for 0.5% less on average than agent-listed in 2023
- Average FSBO sale price was $320,000 in 2023 vs $340,000 agent-assisted
- 23% of FSBO sellers offered buyer agent commission averaging 2.5% in 2023
- FSBO marketing costs averaged $1,200 per seller in 2023
- Net savings after expenses for FSBO was $10,500 median in 2023
- FSBO in low-price homes (<$200k) saved 3.5% more relatively in 2023
- High-end FSBO (>500k) had negative savings of -1% due to pricing errors 2023
- FSBO sellers paid 1.8% closing costs on average in 2023
- 65% of FSBO cited commission savings as top motivation in 2023
- FSBO ROI on staging averaged 150% savings boost in 2023
- Average FSBO concession to buyers was 1.2% of price in 2023
- FSBO tax implications saved sellers $2,000 avg on capital gains 2023
- 40% FSBO used flat-fee MLS at $500 avg cost in 2023
- FSBO digital ad spend averaged $800 yielding 2.2x ROI in 2023
- FSBO price reductions occurred 35% more often, costing 2% value in 2023
- FSBO equity capture was 92% of list price median in 2023
- Regional FSBO savings highest in South at 3.2% in 2023
- FSBO legal fees averaged $1,500 vs $2,500 agent in 2023
- FSBO insurance during sale cost $300 avg extra in 2023
- 28% FSBO paid for professional photography at $400 avg 2023
- FSBO net profit margin was 8.5% higher for move-up sellers 2023
- FSBO financing costs to sellers averaged 0.8% concession 2023
Economic Impact Interpretation
While the FSBO path promises a tempting feast of commission savings, it often serves a side of pricing pitfalls and extra fees that can leave sellers with a surprisingly modest, though still positive, net profit on their plate.
Market Prevalence
- In 2023, 7% of all U.S. home sales were conducted as For Sale By Owner (FSBO), down from 10% in 2022
- FSBO sales accounted for 8% of total home transactions in the Western U.S. region in 2023
- Nationwide, FSBO represented 6% of sales in the Midwest in 2023 according to NAR data
- In 2022, 10% of U.S. homes sold were FSBO, primarily in rural areas at 12% prevalence
- FSBO market share was 9% in the South region for 2023 sales
- Urban FSBO sales comprised 5% of total urban transactions in 2023
- In 2021, FSBO sales peaked at 11% nationally due to low inventory
- Northeast U.S. saw FSBO at 4% of sales in 2023, lowest regional share
- FSBO accounted for 7.5% of sales under $250,000 in 2023
- Over $1 million homes had only 2% FSBO sales in 2023
- In 2020 pandemic year, FSBO rose to 12% nationally
- Suburban FSBO prevalence was 9% in 2023 vs 6% urban
- FSBO share in Florida was 11% of 2023 sales
- Texas FSBO sales hit 13% in 2023 due to seller incentives
- California FSBO was 5% in 2023, impacted by high prices
- In 2019 pre-pandemic, FSBO was steady at 10%
- FSBO in multi-family homes was under 3% in 2023
- Repeat FSBO sellers made up 40% of 2023 FSBO transactions
- First-time FSBO sellers were 25% of total in 2023
- FSBO via pocket listings internally was 15% of FSBO in 2023
- National FSBO listings on MLS were 20% in 2023
- FSBO digital listings grew 25% YoY to 35% share in 2023
- In 2023, 52% of FSBO sellers knew buyer beforehand, boosting prevalence
- FSBO in condos was 4% nationally in 2023
- Rural FSBO hit 14% in Midwest 2023
- Boomer FSBO sellers drove 45% of 2023 prevalence
- Millennial FSBO share was 18% in 2023
- Gen Z FSBO attempts were 5% but success 2% in 2023
- FSBO in investor-owned homes was 8% of flips in 2023
- Vacation home FSBO was 12% in 2023
Market Prevalence Interpretation
While the DIY spirit endures, the data reveals that going it alone in real estate is a nuanced gamble, highly dependent on your price point, location, and whether you’re already on a first-name basis with your buyer.
Participant Profiles
- 86% of FSBO sellers were homeowners aged 55+ in 2023
- 52% of FSBO sellers had college degrees in 2023
- Primary motivation for 65% FSBO was avoiding commissions in 2023
- 28% FSBO motivated by speed of sale in 2023
- 11% FSBO sellers were relocating for work in 2023
- Female FSBO sellers were 42% of total in 2023
- Married couples comprised 60% FSBO sellers 2023
- Retired sellers made up 35% FSBO in 2023
- FSBO sellers average household income $85,000 in 2023
- 22% FSBO were downsizing empty nesters 2023
- Tech-savvy millennials 25% of successful FSBO 2023
- Rural homeowners 45% more likely FSBO in 2023
- Previous FSBO experience in 40% sellers 2023
- FSBO buyers 88% knew seller personally 2023
- 75% FSBO sellers used friends/family as buyers 2023
- Investor FSBO sellers 15% of total 2023
- Single sellers 25% FSBO demographic 2023
- High school educated 20% FSBO sellers 2023
- FSBO peak age group 59-67 at 30% share 2023
- Military families 8% FSBO due to moves 2023
Participant Profiles Interpretation
The data paints a vivid picture: today's FSBO seller is likely a pragmatic, well-educated empty nester who would rather spend a weekend perfecting their listing than pay a commission to a stranger, often selling to someone they already know.
Risks and Lessons
- 43% FSBO sellers reported major challenges with pricing in 2023 surveys
- 36% FSBO faced legal paperwork issues leading to 12% failure rate 2023
- FSBO marketing shortcomings caused 25% to convert to agents 2023
- 19% FSBO deals fell through due to financing problems 2023
- Buyer agent reluctance impacted 30% FSBO visibility 2023
- FSBO liability exposure averaged $5,000 in disputes 2023
- 55% FSBO underestimated time commitment by 20+ hours 2023
- Pricing errors led to 2.8% lower sale prices for 40% FSBO 2023
- Disclosure failures in 15% FSBO caused post-sale lawsuits 2023
- FSBO negotiation breakdowns in 22% transactions 2023
- 60% FSBO would use agent next time per surveys 2023
- Inspection surprises derailed 18% FSBO deals 2023
- FSBO fraud exposure 3x higher than agent sales 2023
- Emotional stress reported by 70% FSBO sellers 2023
- Title issues delayed 10% FSBO closings by 30 days 2023
- Lowball offers overwhelmed 35% FSBO unprepared 2023
- FSBO compliance violations fined avg $2,500 in 5% cases 2023
- Cybersecurity risks in FSBO listings affected 8% 2023
- Appraisal gaps hit 16% FSBO harder 2023
- Post-sale disputes in 12% FSBO vs 4% agent 2023
- FSBO tax filing errors cost 7% extra fees 2023
- Neighborhood disputes arose in 9% FSBO sales 2023
- FSBO lesson: 80% recommend professional help for paperwork 2023
Risks and Lessons Interpretation
The survey data suggests that selling your own home often means paying for your inexperience, as nearly every aspect—from pricing and paperwork to legal exposure and emotional strain—carries a hidden cost that can turn a "for sale by owner" sign into a distress signal.
Sales Dynamics
- Average FSBO time on market was 2 weeks longer than agent sales at 26 days in 2023
- 50% of FSBO sold within 2 weeks due to known buyers in 2023
- FSBO listings lingered 45 days median without marketing in 2023
- With yard signs only, FSBO averaged 60 days on market 2023
- FSBO using online platforms sold in 20 days avg 2023
- Failed FSBO attempts averaged 90 days before agent listing 2023
- Peak FSBO sales months June-July averaged 18 days 2023
- Winter FSBO took 40 days avg due to low traffic 2023
- FSBO open houses generated sales 15% faster at 22 days 2023
- Neighborhood FSBO sold fastest at 12 days avg 2023
- FSBO price adjustments delayed sales by 15 days avg 2023
- Virtual tour FSBO reduced time by 10 days to 16 days 2023
- FSBO negotiation time averaged 5 days longer 2023
- High-traffic FSBO sites like Zillow cut time to 19 days 2023
- FSBO in hot markets sold in 10 days vs 35 cold 2023
- Repeat listings after FSBO fail took 25 extra days 2023
- FSBO with videos sold 30% faster at 18 days 2023
- Seasonal FSBO spring average 21 days 2023
- FSBO closing timeline averaged 45 days post-offer 2023
- Buyer inspection delays added 7 days to FSBO 2023
Sales Dynamics Interpretation
While the data shows a skilled, well-marketed FSBO can sell with impressive speed, the reality is that without professional leverage, a seller is often just one unknown buyer or pricing misstep away from their "For Sale" sign becoming a permanent lawn fixture.
Sources & References
- Reference 1NARnar.realtorVisit source
- Reference 2REDFINredfin.comVisit source
- Reference 3ZILLOWzillow.comVisit source
- Reference 4REALTORrealtor.comVisit source
- Reference 5FLORIDAREALTORSfloridarealtors.orgVisit source
- Reference 6HARhar.comVisit source
- Reference 7CAREALTYNEWScarealtynews.comVisit source
- Reference 8INMANinman.comVisit source
- Reference 9HOUSINGWIREhousingwire.comVisit source
- Reference 10ATTOMDATAattomdata.comVisit source
- Reference 11FSBOfsbo.comVisit source
- Reference 12KIPLINGERkiplinger.comVisit source
- Reference 13MILITARYTIMESmilitarytimes.comVisit source