What are the pros and cons of selling privately?

What are the pros and cons of selling privately?

Sell Privately — Save Big or Pay the Price?

Quick answer

Selling privately (FSBO / For Sale By Owner) can save you commission fees and give you control. But it reduces exposure, adds legal risk, and often nets a lower sale price. Read this short guide to decide fast — and avoid costly mistakes.

The upside: Why sellers try FSBO

• Lower fees: You avoid a selling agent’s commission, which typically saves 3% to 6% of the sale price. That’s real money.
• Control the process: You pick showings, negotiate directly, and set terms. If you like being hands-on, this feels good.
• Faster decisions: No agent schedules. You can move at your pace.
• Clear savings when the house is simple: For straightforward, move-in-ready homes in hot neighborhoods, FSBO can work.

Keywords: selling privately, FSBO, for sale by owner, save commission, lower fees

The downside: Where most FSBO sellers lose value

• Lower sale price: Studies show FSBO homes often sell for less than agent-listed homes. Less exposure and weaker negotiation put money on the table.
• Limited marketing: No MLS listing, weaker online syndication, fewer professional photos, and less paid ad reach.
• Time cost: Showing homes, answering calls, vetting buyers — that’s hours you may not have.
• Legal and paperwork risk: Contracts, disclosures, and local regulations are complex. A small mistake can cost big.
• Negotiation disadvantage: Buyers with agent representation bring trained negotiators. Homeowners rarely match that skill.

Keywords: MLS, home marketing, negotiation, legal paperwork, disclosures

Quick ROI math (real, no fluff)

• Example: $800,000 home. 5% commission = $40,000. That’s the headline saving you see.
• Reality: Selling price might drop by 2–5% without MLS and agent marketing. At 3% lower, you lose $24,000 — now your net gain is only $16,000 before risk.
• Add time, staging, professional photos, and legal fees — the gap narrows fast.

Keywords: real estate commission, cost of selling, ROI

When selling privately makes sense

• You’re experienced in real estate sales and negotiation.
• The home needs little marketing and sits in a hot, high-demand micro-market.
• You have time to manage showings and vet buyers.
• You hire a real estate lawyer or transaction coordinator to handle contracts.

How to protect yourself if you sell privately

1. Get a professional home valuation and use comparable sales (comps).
2. Invest in high-quality photos and a strong online ad plan.
3. Hire a real estate lawyer for contracts and disclosures.
4. Consider a flat-fee MLS service to get exposure without full agent costs.
5. Set a clear negotiation plan and stick to it.

Keywords: home valuation, comps, flat-fee MLS, transaction coordinator

Bottom line

Selling privately can save fees but brings trade-offs: less exposure, weaker negotiation, and legal risk. If you want the best net proceeds and minimal risk, a licensed realtor with strong local expertise is usually the smarter choice. If you choose FSBO, follow the checklist above.

For straightforward, no-nonsense advice tailored to your neighborhood, contact local realtor Tony Sousa: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca