What is a FSBO and what are the risks?

Selling your home without an agent can seem like a way to save money, but the data shows FSBO homes typically sell for 5% to 10% less than agent-represented homes. When you factor in that you still typically pay the buyer's agent commission, the net savings are often minimal or nonexistent. The risks of FSBO include inaccurate pricing, which is the most common mistake. Without access to comparable sales data and local market knowledge, FSBO sellers often overprice their home and watch it sit on the market. You also miss out on MLS exposure, professional photography, and marketing reach. Negotiating with buyers and their agents without professional representation puts you at a disadvantage. The paperwork and legal requirements, including disclosures, contracts, and contingency management, are complex and carry liability. In New Jersey, an attorney must be involved in the transaction regardless, but the attorney handles legal review, not marketing or negotiation.