Question 1

What percentage of home sales are FSBO?

Accepted Answer

FSBO sales represent about 5-6% of all US home sales — an all-time low, down from 21% in 1985. About 420,000 FSBO transactions occur annually, representing roughly $84 billion in total sales value.

Question 2

How much can I save selling FSBO?

Accepted Answer

On a $400,000 home, you can save $20,000-$24,000 compared to a full-service agent. The typical full-service commission is 5-6%. Since the 2024 NAR settlement, you are no longer required to offer buyer agent compensation — buyers pay their own agent.

Question 3

Do FSBO homes sell for less than agent-listed homes?

Accepted Answer

Statistically, FSBO homes sell for about $55,000-$65,000 less on average. However, this includes many FSBO sales between family/friends at below-market prices. When comparing arms-length transactions with proper marketing, the gap narrows significantly.

Question 4

Do I still need to pay the buyer's agent commission?

Accepted Answer

No. After the 2024 NAR settlement (effective August 17, 2024), sellers are no longer required to offer buyer agent compensation on the MLS. Buyers now negotiate and pay their own agent fees through written buyer-broker agreements.

Question 5

What did the 2024 NAR settlement change?

Accepted Answer

Effective August 17, 2024: (1) Sellers no longer must offer buyer agent compensation on the MLS, (2) buyer agents must sign written agreements with buyers before touring homes, (3) all commission structures must be transparently disclosed.

Question 6

Do I have to pay capital gains tax when I sell my home?

Accepted Answer

If it's your primary residence and you've owned AND lived in it for at least 2 of the last 5 years, you can exclude up to $250,000 in profit (single) or $500,000 (married filing jointly) from capital gains tax.

Question 7

What is the SALT deduction cap and how does it affect me?

Accepted Answer

The SALT deduction was capped at $10,000 by the TCJA. For 2025-2029, the One Big Beautiful Bill Act raised the cap to $40,000 ($20,000 for married filing separately), increasing by 1% annually. The higher cap phases out for MAGI above $500,000.

Question 8

What is a 1031 exchange and does it apply to my home sale?

Accepted Answer

1031 exchanges let you defer capital gains tax by reinvesting sale proceeds into another investment property within 180 days. They only apply to investment/business property — NOT your primary residence.

Question 9

Do I need a real estate attorney to sell FSBO?

Accepted Answer

It depends on your state. Attorney states (where a lawyer is required at closing): CT, DE, GA, IL, LA, NJ, NY, NC, SC, and others. Even in non-attorney states, hiring one ($500-$1,500) is strongly recommended.

Question 10

What disclosures am I required to make?

Accepted Answer

Federal: lead paint disclosure for pre-1978 homes (all states). State: most states require a property condition disclosure form covering structural defects, water damage, environmental hazards, plumbing/electrical/HVAC condition, pest issues, zoning violations. Failing to disclose known defects is the #1 cause of FSBO lawsuits.

Question 11

What are total FSBO closing costs?

Accepted Answer

On a $400K home, total FSBO closing costs are typically $3,000-$8,000 (0.75-2%). This includes transfer tax, title insurance, attorney, flat-fee MLS, recording fees, and prorated property taxes.

Question 12

Is it worth paying for professional photos?

Accepted Answer

Absolutely — this is the highest-ROI expense in FSBO selling. Listings with professional photos get 61% more views, sell 32% faster, and sell for $3,000-$11,000 more. Budget $200-$400 for a real estate photographer.

Question 13

What does a flat-fee MLS listing include?

Accepted Answer

For $100-$500, a flat-fee service lists your home on the local MLS, which automatically syndicates to Zillow, Realtor.com, Redfin, and Trulia. Top services: Houzeo ($349-399), ISoldMyHouse ($299-399), Beycome ($99-499).