For Sale by Owner (FSBO) can seem like a great way to save on real estate commissions. After all, why pay 5–6% to an agent when you can handle the sale yourself?
While the appeal of keeping more profit is strong, many FSBO sellers run into costly and avoidable mistakes that could significantly impact their success.
If you’re considering selling your home on your own, knowing what to avoid is just as important as knowing what to do. Let’s dive into the common FSBO mistakes and how to avoid them.
1. Overpricing the Property
Why it’s a problem:
Most FSBO sellers think their home is worth more than it actually is. Emotional attachment, renovation costs, or comparisons with nearby homes can cloud judgment.
The consequence:
An overpriced home sits on the market longer, becomes “stale,” and often ends up selling for less than it would have if priced right from the start.
How to avoid it:
- Get a Comparative Market Analysis (CMA) or hire an appraiser.
- Use online tools to research recent sales, but don’t rely on them alone.
- Review recently sold homes that match yours in size, location, and condition.
2. Poor Home Presentation & Staging
Why it’s a problem:
Buyers should be able to visualize themselves living in the home. Clutter, outdated decor, or lack of cleanliness makes a bad impression.
The consequence:
Lowball offers or no offers at all.
How to avoid it:
- Deep clean every room.
- Declutter countertops, closets, and personal items.
- Use neutral colors and minimal decor.
- Hire a professional photographer – blurry phone pics won’t cut it.
Homes showcased in the right way sell faster and for more – the FSBO course from Something Different Real Estate teaches how to stage and present like a pro.
3. Skipping the Marketing Plan
Why it’s a problem:
Listing your home on one site and sticking a sign in your yard is not enough.
The consequence:
Fewer eyeballs = fewer offers.
How to avoid it:
- List your home on multiple FSBO platforms (Zillow, FSBO.com, Facebook Marketplace, Craigslist).
- Use social media ads to target local buyers.
- Think about purchasing MLS access through a flat-fee broker to expand your listing’s visibility.
Also, Explore How to Buy or Sell Real Estate Without a Realtor.
4. Not Knowing How to Screen Buyers
Why it’s a problem:
Allowing anyone to tour your home without vetting them wastes time and can be unsafe.
The consequence:
Time wasted with unqualified buyers, or worse, scams.
How to avoid it:
- Require pre-approval letters before scheduling tours.
- Ask for buyer agents to be present if they’re working with one.
- Never host open houses alone – always have someone with you for security.
Learn Here: Home Inspection Checklist for FSBO Buyers
5. Inadequate Knowledge of Legal & Paperwork Requirements
Why it’s a problem:
Real estate deals require handling legal contracts, mandatory disclosures, and compliance with state-specific regulations.
The consequence:
Legal issues, lost deals, or lawsuits down the road.
How to avoid it:
- Hire a real estate attorney to review paperwork.
- Understand your state’s required disclosures (lead paint, structural issues, etc.).
- Use reputable online FSBO platforms that provide downloadable templates.
Not sure where to start? The FSBO course by Something Different Real Estate breaks down all legal and paperwork essentials for first-time sellers.
6. Underestimating Negotiation Skills
Why it’s a problem:
Selling a home isn’t just about listing it – it’s about negotiating offers, counteroffers, and contingencies.
The consequence:
You might accept a bad deal or lose a good one.
How to avoid it:
- Study basic negotiation tactics or consult with a real estate coach or attorney.
- Don’t take offers personally – this is a business transaction.
- Be prepared to respond quickly and reasonably to offers and questions.
7. Getting Emotionally Involved
Why it’s a problem:
You’ve lived in this house. You have memories. But to the buyer, it’s just a structure.
The consequence:
Overreacting to criticism or undervaluing the buyer’s needs can derail the process.
How to avoid it:
- Treat the sale as a business deal.
- Step back and view your home objectively.
- Focus on what makes sense financially – not emotionally.
8. Not Preparing for the Closing Process
Why it’s a problem:
Many FSBO sellers aren’t ready for inspections, appraisals, title work, and closing disclosures.
The consequence:
Delays, failed deals, or unexpected expenses.
How to avoid it:
- Have a list of service providers ready (inspectors, title companies).
- Understand your timeline obligations in the sales contract.
- Partner with a closing coordinator or escrow officer to ensure a smooth and hassle-free transaction, if necessary.
9. Assuming You’ll Save Big on Commission
Why it’s a problem:
While you save on the listing agent commission, many buyers are still represented by agents – and they expect you to pay their fee (usually 2.5%–3%).
The consequence:
Refusing to pay the buyer’s agent = fewer buyers.
How to avoid it:
- Be upfront in your listing whether you’re willing to cooperate with agents.
- Consider offering a buyer agent commission to widen your pool of potential buyers.
Tip: Consider enrolling in the FSBO course offered by Something Different Real Estate – it’s designed to help sellers avoid these exact mistakes while guiding you through every step of the process.
10. Lacking a Clear Plan for Showings and Follow-Up
Why it’s a problem:
Not responding promptly or failing to show your home professionally can cost you interested buyers.
The consequence:
Lost momentum and trust.
How to avoid it:
- Be responsive to calls, emails, and inquiries.
- Keep your home “show-ready” at all times.
- Create a follow-up system – send thank-you notes, ask for feedback.
Thinking of Selling Your Home Without a Realtor?
Take the FSBO course from Something Different Real Estate that is designed to empower homeowners with the step-by-step knowledge to confidently market your property, negotiate offers like a seasoned pro, and handle the entire sales process from listing to closing-all while avoiding hefty agent commissions.
Selling your home FSBO can work – but only if you treat it like a serious business endeavor. Avoiding these common mistakes is the key to saving money without sacrificing value.
If you’re organized, market-savvy, and willing to learn the legal side of real estate, you can succeed. If not, don’t hesitate to hire professional help for critical steps.
