15. Understanding FSBO Sales in Today’s Housing Market

The U.S. Home Sales Snapshot

In the United States, the number of existing homes sold annually typically ranges between 4 and 6 million, with new construction adding approximately 600,000 to 700,000 units per year. While home sales peaked in 2021 at over 6 million, the market has declined to around 4 million in recent years due to higher interest rates and limited inventory. On average, roughly 11,000 to 11,370 homes sell each day, but a significant lack of available homes for sale has constrained sales volumes since 2020.

What FSBO Means and How Common It Is

Approximately 5% to 10% of those homes are sold directly by the owner, commonly known as For Sale By Owner, or FSBO. While the share of FSBO sales reached a high of approximately 10% in 2022, it dropped to an all-time low of 5% in 2025. These transactions are more common in rural areas and often involve sellers who already know the buyer.

FSBO homes tend to sell for less than agent-assisted homes. For example, in 2021, FSBO homes sold for a median of $225,000 compared to $345,000 for homes sold with an agent. Sellers often choose FSBO when selling to friends or family, which accounts for approximately 18% of FSBO transactions, or when using third-party aggregators, which account for about 10%. FSBO sales are also more prevalent among older homeowners and single-family properties.

Why Sellers Go Without an Agent

Some sellers choose FSBO to save commission, because they previously had a bad experience with a realtor, or because they are wary of a real or potential disclosure issue. Disclosure issues are material defects, meaning significant, known problems that negatively affect a property’s value, safety, or desirability. Requirements vary by state, but failure to disclose known problems can lead to lawsuits for fraud, misrepresentation, or breach of contract.

Disclosure Risks and Common Post-Closing Issues

Approximately 90% of buyers nationwide report finding issues with a home after closing. Common issues include leaks or water damage, foundation cracks, roof or structural problems, faulty wiring, outdated plumbing, HVAC failures, pest damage, lead-based paint, asbestos, radon, unpermitted renovations, and nearby sources of noise, odor, or pollution. If a seller knowingly withholds information, buyers may have grounds to cancel the sale, take legal action after closing, or in extreme cases force a repurchase.

Why Most People Hire an Agent

FSBO homes typically sell for significantly less than agent-assisted properties, and real estate transactions involve extensive paperwork and mandatory disclosures that must be completed correctly. Agents also carry errors and omissions insurance, and they provide access to marketing channels like the Multiple Listing Service. Pricing and negotiations also require deep local knowledge, and selling a home can become a full-time job that includes showings, screening buyers, and managing the closing process.

Final Thoughts

For these reasons, 90% or more of Americans choose to work with a real estate agent. Real estate commissions typically range from 5% to 6% of a home’s sale price, often split between the buyer’s and seller’s agents. While commission is a real cost, many sellers find that stronger marketing, accurate pricing, professional negotiations, and reduced legal risk make agent representation worthwhile.