FSBO in Massachusetts: Why Homes Sell for 23% Less Without an Agent

by Taylor Shurtleff

FSBO in Massachusetts: Why Homes Sell for 23% Less Without an Agent

Selling your home without a REALTOR®, known as "For Sale By Owner" (FSBO), might seem like a way to save on commission. But the numbers tell a different story. National Association of REALTORS® (NAR) data shows FSBO homes sell for 23% less on average than those listed with an agent. Here’s why:

1. Limited Exposure to Buyers

REALTORS® have access to the Multiple Listing Service (MLS), which syndicates listings to major real estate websites. FSBO sellers rely on yard signs, social media, and third-party sites with lower visibility. Less exposure means fewer buyers and lower offers.

2. Pricing Mistakes

Without local market knowledge, FSBO sellers often overprice or underprice their homes. Overpricing leads to longer days on market, while underpricing leaves money on the table. An agent conducts comparative market analyses (CMA) to price the home competitively.

3. Negotiation Challenges

Buyers' agents are skilled negotiators. FSBO sellers often face aggressive buyers seeking discounts or making demands that cut into profits. An agent protects your bottom line and handles negotiations professionally.

4. Legal and Contract Risks

Massachusetts real estate transactions require legally binding contracts and disclosures. Mistakes in paperwork can lead to delays, lawsuits, or deals falling through. A REALTOR® ensures compliance and reduces liability.

5. Financing and Closing Issues

FSBO transactions often stall due to financing problems. Agents vet buyers for pre-approval, work with lenders, and manage closing timelines. Without this oversight, deals are more likely to collapse before the closing table.

Is FSBO Ever a Good Idea?

If you have a buyer already lined up and are familiar with the selling process, FSBO might work. But for most sellers, hiring an agent nets more profit even after commission.