Putting the Pro's and Con's of For Sale By Owner (FSBO) into Perspective

Selling a home is one of the most significant financial decisions a person can make, and with that comes a pivotal choice: tackle the process solo as a "For Sale By Owner" (FSBO) or enlist the expertise of a real estate agent. In today’s market, particularly in a dynamic region like San Diego, understanding the motivations behind FSBO and the advantages of working with an agent can help sellers make an informed decision. Let’s dive into why some homeowners opt to sell on their own, then explore why partnering with an agent often proves to be the smarter move—backed by compelling statistics.

Why Sellers Choose FSBO

The allure of FSBO is rooted in a few key motivations, and it’s easy to see why these appeal to homeowners looking to maximize their profits or maintain control.

1. Saving on Commission Fees: The most common reason sellers turn to FSBO is to avoid paying the traditional 5-6% commission that agents typically charge. In San Diego, where median home prices hover around $1 million (as of early 2025), that commission could equate to $50,000–$60,000—a hefty sum that many hope to keep in their pocket. 

2. Control Over the Process: FSBO sellers enjoy calling the shots. They set the price, schedule showings, craft the listing description, and negotiate directly with buyers. For those who feel confident in their real estate savvy or distrust third-party involvement, this autonomy is a big draw.

3. A Known Buyer: Some FSBO sellers already have a buyer in mind—perhaps a friend, family member, or neighbor. In these cases, they see little need for an agent’s marketing or negotiation skills, believing the sale will be straightforward and quick.

4. Testing the Waters: In a hot market like San Diego’s, where demand often outpaces supply, some sellers think, “Why not try it myself first?” The idea is that if the home doesn’t sell, they can always pivot to an agent later.

While these reasons are understandable, the FSBO path isn’t always as smooth or lucrative as it seems. Let’s shift gears and explore why partnering with a real estate agent often outweighs the DIY approach—especially when considering the numbers.

The Case for Using a Real Estate Agent

Real estate agents bring expertise, exposure, and efficiency to the table, often making the difference between a good sale and a great one. Here’s why sellers in San Diego (and beyond) should think twice before going FSBO:

1. Higher Sale Prices: One of the most persuasive arguments for using an agent is the potential for a higher sale price. Nationally, according to the National Association of Realtors (NAR), FSBO homes sold for a median of $380,000 in 2024, while agent-assisted homes fetched $435,000—a gap of $55,000. In San Diego, where the market is more competitive and prices are higher, this disparity can be even more pronounced. Local data suggests that FSBO homes in San Diego sold for approximately 10-15% less than agent-assisted sales in recent years. For a $1 million home, that’s a potential loss of $100,000–$150,000—far exceeding the typical commission cost.

2. Market Expertise: Pricing a home correctly is both an art and a science, and agents have the tools and experience to nail it. They conduct Comparative Market Analyses (CMAs) using recent sales data, ensuring your home is competitively priced to attract buyers without leaving money on the table. FSBO sellers, lacking this insight, often overprice (scaring off buyers) or underprice (costing themselves profit). In San Diego’s diverse neighborhoods—from La Jolla to Chula Vista—local knowledge is critical, and good agents have it in spades.

3. Wider Exposure: Agents leverage the Multiple Listing Service (MLS), professional networks, and marketing strategies to get your home in front of more buyers. FSBO sellers, even with online tools like Zillow, often struggle to achieve the same reach, as they only have the ability to list on two or three sites, while a listing on the MLS goes out to thousands of sites. In a fast-paced market like San Diego, where homes can sell in days, limited exposure can mean missing out on top offers. NAR data shows that 89% of buyers used an agent in 2024, meaning FSBO sellers may miss a huge chunk of the market if buyer’s agents steer clients away from unrepresented listings.

4. Time and Stress Savings: Selling a home is a full-time job—fielding inquiries, hosting showings, negotiating offers, and handling paperwork. For FSBO sellers, this burden falls entirely on their shoulders, often alongside their regular jobs and responsibilities. Agents take on this workload, streamlining the process and reducing stress. In San Diego, where the median time on market for agent-assisted homes was just 14 days in 2024 (compared to 25 days for FSBOs, per local estimates), this efficiency can be a game-changer.

5. Legal and Negotiation Support: Real estate transactions involve complex contracts, disclosures, and legal requirements. Agents navigate these waters expertly, minimizing the risk of costly mistakes. They also negotiate on your behalf, often securing better terms than a seller could alone. FSBO sellers in San Diego have reported challenges with paperwork and buyer pushback, sometimes leading to deals falling through.

6. Hybrid options: You might be able to find an agent that is willing to list your home on the MLS and help in the areas where you need it. There are few of these agents out there, because most brokerages will not allow an Agent to provide discounted services. At Abundant Path Homes, we do provide these services, so ask us about our Hybrid FSBO Services

San Diego Stats: FSBO vs. Agent-Assisted Sales

Let’s put some numbers behind this. While exact San Diego-specific FSBO data for 2025 isn’t fully compiled yet, historical trends and recent market insights paint a clear picture:

- Sale Price Differential: In 2023, San Diego FSBO homes sold for a median of $850,000, while agent-assisted sales hit $975,000—a 14% difference. Even after a 5-6% commission (around $58,500 on a $975,000 sale), the seller nets $916,500—still $66,500 more than the FSBO median.

- Market Share: FSBO sales accounted for just 6% of San Diego home sales in 2024, down from 10% a decade ago, reflecting a growing reliance on agents in this high-stakes market.

- Time on Market: Agent-assisted homes in San Diego sold in an average of 14 days in 2024, while FSBO homes lingered for 25-30 days, often due to pricing missteps or limited marketing.

These stats underscore a key point: while FSBO might save on commission upfront, the trade-off in sale price and time often outweighs the benefit.

Putting the Agent Commission into Perspective

Many sellers believe they’re the ones paying agent commissions, but that’s not quite the full story. In reality, the buyer covers both their agent’s and the seller’s agent’s commissions, as these are rolled into the home’s purchase price along with most closing costs. After last year’s National Association of Realtors (NAR) settlement, things have shifted: buyers now negotiate their agent’s commission directly with their agent. This means when they offer on your home, they may bump up the price to include that fee. It might sound like a win for FSBO sellers—skipping commissions to keep more money—but there’s a catch. Agents typically secure 14% higher sale prices, so going it alone could mean losing out on profit, time, and your peace of mind. Selling a home is tough, and while the urge to save is real, an agent’s expertise often pays off more than it costs.

The Bottom Line

Choosing between FSBO and an agent comes down to priorities. If maintaining control is your top goal—and you’re willing to invest significant time and effort—FSBO might be worth a shot, especially if you already have a buyer lined up. But for most sellers in San Diego, the data and real-world outcomes favor working with an agent. The higher sale prices, faster transactions, and professional support often more than justify the commission cost, leaving you with more money in your pocket and less stress on your plate.

So, before you plant that “For Sale By Owner” sign in your yard, weigh the numbers and consider the value an agent brings. In a market as vibrant and competitive as San Diego’s, having an expert by your side could be the key to unlocking your home’s full potential.

Ask us about our Hybrid listing services for FSBO sellers.  darel@abuntentpathhomes.com 858.229.1625