From time to time, homeowners explore selling their property without an agent by listing it “For Sale by Owner”. There are a variety of reasons that a homeowner may choose this route, but the primary reason we hear is to save on broker compensation. From pricing and marketing to contracts and negotiations, there are important factors to weigh before deciding whether to sell on your own. Below, we’ll outline what a FSBO involves and the key pros and cons.
What is For Sale By Owner?
When a homeowner chooses to sell their home on their own, this is considered a For Sale By Owner, or FSBO (fis-bo). In this scenario, the seller is responsible for each step, from pre-listing preparation through to closing. Some sellers may hire third parties, such as attorneys or appraisers, for support.
The Pros and Cons of Selling a Home Without a RealtorⓇ
Sales Price & Compensation
The most common reason homeowners choose to list their home FSBO is to avoid paying a listing agent’s compensation fee, which is customarily around 3% but always negotiable. That fee covers much more than just marketing - it also includes a Comparative Market Analysis to determine a competitive listing price, professional photography, videography or drone photos, staging (as needed), other marketing services that require upfront investment, as well as the time, knowledge, skills, and market expertise throughout the process.
While saving that fee to maximize profit makes perfect sense, data shows that FSBOs actually sell for less than broker-assisted sales. A broker can prepare a net sheet for you, outlining different pricing scenarios and a clear breakdown of the fees involved in the transaction so you have a good estimate of your total net proceeds. Negotiations go beyond just the sales price - they can include post-closing occupancy, inspection objections, appraisal gaps, or seller credit requests, to name a few. Many brokers are certified negotiators and dedicated to obtaining the best terms for their clients.
It is also worth noting that many FSBO transactions still involve a RealtorⓇ representing the buyer. In such cases, the seller will need to decide in advance how to handle the buyer’s agent compensation prior to entering into a contract. We’ve seen this structured in a few ways: the seller pays the full amount, the buyer pays the full amount, or the parties agree to split the cost.
Contracts
Navigating Colorado’s Contract to Buy and Sell is the most critical aspect of selling your home, as it sets out the detailed terms and conditions for both parties, which carry legal implications if handled incorrectly. Having the guidance of a RealtorⓇ can save time, stress, and keep the contract moving forward over any potential obstacles that arise. A local broker helps manage all of the dates and deadlines, and keeps the transaction in process, and also connects clients with trusted professionals - from contractors and lawyers to title companies and radon mitigators.
Marketing
Selling a home takes more than a sign in the yard and posting online. Professional RealtorsⓇ invest in high-quality marketing: photography, videography and/or drone footage, e-flyers distributed to over 375 other local brokers, and social media promotion. They also provide exposure through the MLS (Multiple Listing Service), which connects your property with buyers through their brokers, but also through major websites like Zillow, Realtor.com, and Homes.com. The Wells Group’s team of full-time brokers go on property tours to view our office’s listings in person, sharing insights and ideas with each other, while also looking for homes that might fit their buyers. This networking increases visibility and strengthens market knowledge - both of which benefit sellers as we prepare a CMA and market strategy.
While we do see smooth FSBO transactions, selling your own home carries risks that are often underestimated. Missteps with paperwork or missed deadlines can lead to disputes, delays, or even a breach of contract, potentially exposing the seller to legal and financial consequences. Having a RealtorsⓇ on your side provides not only expertise but also protection against costly mistakes.
If you are considering selling your home in Durango or the surrounding areas, we would love the opportunity to talk with you about your goals and see if our team is the right fit. Please don’t hesitate to contact Max Hutcheson and Deven Meininger from The Durango Team at The Wells Group.
