The FSBO Reality Check

The numbers don't lie

According to the National Association of Realtors' Profile of Home Buyers and Sellers, FSBO transactions account for roughly 6% of all U.S. home sales. That percentage has remained relatively flat for years despite the rise of online listing platforms and flat-fee MLS services.

The headline appeal of FSBO is saving 5–6% in commissions. On a $400,000 home, traditional commissions total around $24,000. By going FSBO, you theoretically keep most or all of that money. But the median price data suggests something more complicated is happening.

Why FSBO homes undersell

The $55K gap isn't because FSBO homes are inherently worth less. It's because execution matters, and most owner-sellers struggle with at least one critical element:

• Pricing errors: Without access to broker-level comp data and pricing psychology, FSBO sellers often start too high (hoping to "test the market") or too low (afraid of scaring buyers). Both strategies cost money. Overpricing burns your listing freshness; underpricing leaves equity on the table.
• Weak marketing: Professional agents invest in staging, photography, copywriting, and paid placement. FSBO sellers often skimp on these items to "save money," but bad photos or generic descriptions kill buyer interest before a single showing happens.
• Slow response times: Buyers and buyer agents move fast. If you miss a call or take 24 hours to respond to a showing request, they've already scheduled three other properties. Speed converts curiosity into showings; delays kill momentum.
• Negotiation discipline: First-time sellers tend to over-concede during inspection or give away leverage in offer negotiations. Experienced agents know when to push back and when to counter. Amateur sellers often don't, and each unnecessary concession chips away at net proceeds.
• Compliance and paperwork gaps: Missing disclosure forms, unclear contract language, or botched escrow coordination can delay closing—or worse, kill the deal entirely. Even small mistakes create friction that costs time and money.

Add these execution taxes together, and you start to understand why the median FSBO price lags. The commission "savings" get eroded by underpricing, weak buyer traffic, slow response, and negotiation mistakes.

When FSBO actually works

FSBO isn't doomed to fail—it just requires discipline and often a specific set of circumstances. NAR data shows that 18% of FSBO sellers found their buyer via friends or family. If you already have a motivated buyer lined up, FSBO makes sense: you skip the marketing grind and go straight to contract.

Other scenarios where FSBO can succeed:

• Hot seller's market: When inventory is tight and buyers are competing, you can list at market price and still get multiple offers. Marketing and negotiation discipline matter less when demand outpaces supply.
• Experienced seller: If you've sold multiple homes, understand local disclosure laws, and know how to price and negotiate, you're less likely to make costly mistakes. The learning curve is real—don't assume your first FSBO will go smoothly.
• Using professional support tools: Flat-fee MLS services, professional photography, 24/7 call handling, and offer intelligence tools can professionalize your sale without paying 6% commissions. Services like Meydomo exist precisely to close the execution gap and let you keep FSBO-level savings without the chaos.

Bottom line: Pure DIY FSBO is high-risk. Without professional support, most sellers end up netting less than they would have with a good agent—or they give up and hire an agent after 30–60 days of frustration.

What this means for you

If you're considering FSBO, go in with eyes open. The 6% commission is real money, but so is the $55K price gap. Your job over the next six chapters is to understand:

• What workload you're taking on (Chapter 2)
• What you actually save when you execute well (Chapter 3)
• Where FSBO sellers typically lose money (Chapter 4)
• Which tools improve your odds (Chapter 5)
• How Meydomo bridges the gap (Chapter 6)
• Whether FSBO is the right move for your situation (Chapter 7)

Next up: Chapter 2 breaks down the four full-time jobs you're now managing as a FSBO seller—pricing analyst, marketing director, sales coordinator, and contract manager. Understanding the workload is step one in deciding if you can execute at a level that beats the median.