Trying to sell your home without a real estate agent—also known as “For Sale By Owner” (FSBO)—might seem like a smart way to save on commission. But many homeowners who go the FSBO route quickly realize that the process involves far more than putting a sign in the yard. If you’re considering selling your home on your own, watch out for these common FSBO home selling mistakes that could cost you time, money, and peace of mind.
1. Overpricing the Property
One of the top FSBO home selling mistakes is pricing the home too high. Without access to accurate comparative market analysis (CMA) data, FSBO sellers often rely on online estimates or emotional attachment to set the price. An overpriced home sits on the market longer, making it harder to sell and often leading to price reductions. Correct home pricing strategy is key to attracting qualified buyers quickly.
2. Underestimating the Complexity
Selling a home involves much more than listing it. FSBO sellers are responsible for marketing the property, handling showings, responding to buyer inquiries, managing contracts, and coordinating with inspectors, lenders, and attorneys. Many underestimate the workload and make costly errors due to lack of real estate experience.
3. Poor Marketing and Presentation
Today’s buyers expect professional-quality photos, compelling property descriptions, and strong online real estate marketing. Most FSBO listings fall short with low-quality images and limited visibility. Without access to the Multiple Listing Service (MLS), FSBO homes miss the exposure they need to reach serious buyers.
4. Limited Buyer Exposure
Real estate agents have access to MLS listings, private agent networks, and pre-qualified buyers. FSBO sellers often rely on Zillow, Craigslist, or a yard sign—limiting reach. Less exposure means fewer showings, slower sales, and potentially lower offers.
5. No Errors & Omissions (E&O) Insurance
A major risk of selling your home without a real estate agent is the lack of Errors and Omissions insurance. Licensed agents carry E&O coverage to protect clients from legal issues caused by mistakes in paperwork, contracts, or disclosures. FSBOs don’t have this protection—meaning one small error can result in major legal liability or financial loss.
6. Weak Negotiation Skills
Negotiating a home sale involves more than just agreeing on a price. Terms like closing costs, repairs, contingencies, and timelines are all negotiable. Without experience, FSBO sellers may accept poor terms or scare off buyers. A seasoned agent can often negotiate better deals and protect your bottom line.
7. Legal and Contract Mistakes
Real estate contracts must comply with state laws and include all necessary disclosures and contingencies. FSBO sellers often use outdated or incorrect forms, putting the transaction—and themselves—at legal risk. A licensed agent ensures all paperwork is handled correctly and deadlines are met.
8. Letting Emotions Interfere
Selling your home is emotional, but decisions should be made with logic and market data. FSBO sellers often take feedback personally or resist reasonable offers. An agent acts as a neutral third party to keep negotiations professional and productive.
Final Thoughts
The FSBO path can seem appealing, but it’s filled with potential pitfalls—from pricing and paperwork to marketing and legal liability. Without the protection of E&O insurance and the support of professional guidance, many FSBO sellers end up losing money or listing with an agent later. If you’re looking to sell your home quickly, safely, and for top dollar, partnering with an experienced real estate agent is often the best decision.