Why Sale by Owner Means Losing Money And Time

1 Star2 Stars3 Stars4 Stars5 Stars (1 votes, average: 5.00 out of 5)
for Sale by Owner
Table of Contents

Some people may think that “For Sale By Owner” (FSBO) can be a great idea, maybe because they don’t need to pay the real estate agent commission. They probably think that they will keep all the money made in the sale of their house.

The truth is the whole process of selling a home is not exactly an easy process. It means it could be very complicated for those who don’t have related knowledge or experience, which may result in a waste of time and money, or in some cases may have legal consequences. Based on statistics, among the 36% house owners who try to sell their properties without hiring a real estate agent, actually only 11% are able to handle it properly. That literally means less than ⅓ of the home sellers who tried FSBO have been able to do it somehow successfully.

What does For Sale By Owner (FSBOO) mean?

FSBO or “for sale by owner” means the homeowner does not use the help of a real estate agent to sell their property. When you decide to sell your house by yourself, you may take advantage of not paying any commission fees, but you must handle all the work and negotiations that a top Toronto realtor can do for you.

One misconception is that, not paying commission on sale means banking the most amount of money for your home. A professional agent might be able to sell it much higher than what a home seller in a FSBO can sell. So at the end of the day the most amount of money in your bank is more important than saving a commission on a property that could be sold much higher. Right?

An experienced real estate agent has enough skill to do the research, setting the right asking price, marketing, listing and staging, and knows all the legal paperwork. Do you have enough time, energy, resources, or knowledge to do all of these tasks properly?

Offering a proper price for your Toronto home needs a lot of research and expertise in the Toronto real estate market. The way you price your house has a huge impact on the sale of your home as quickly as possible. So, before you decide to sell the house by yourself just ask yourself “do you even know how to price your house for sale in Toronto?”

Let’s review some cons and pros of FSBO.

for Sale by Owner

Pros of FSBO

1. No agent commission 

If you go for FSBO, you can save the real estate agent commission. The most appealing thing about FSBO is that the seller doesn’t need to pay the commission to the seller’s agent. But don’t forget, you still need to pay the buyer’s agent commission. If you don’t pay that, your chances of finding a potential buyer will be significantly limited.

2. You can handle the marketing and staging based on your own preferences and tastefulness 

This could be another tempting aspect for FSBO, to do everything based on your own preferences. But even this part could be useful just in case that the owner has the experience of buying and selling in the past or has a real estate background. But if it’s your first experience, we seriously recommend you not to do that by yourself and ask for real estate advice. Because if you fail to handle the process, your home will sit on the market longer, or other issues may arise.

Cons of FSBO

1. Limited network

Real estate agents are connected to a huge network of buyers. It means even if you are extremely connected to your community, it won’t be comparable to theirs. They are regularly participating in different events involving potential buyers. Networking is part of their job. Someone who has no real estate background can never find such a useful network.

for Sale by Owner

2. Full-time job

The whole process of selling a house needs a lot of work. It is very time-consuming for someone who has a full-time job or a family to handle, this could be a very challenging process. Listing, marketing, staging and open houses, negotiating and lots of paperwork, from the first to the last stage, it requires a lot of time and energy.

3. Pricing without the right tools

There are many different research tools available for real estate agents to determine the real price of a house. This is a very sensitive stage, because if you price your house too low, that will cost you losing significant amounts of money. On the other hand, if you price your home too high, your home will probably stay in the market for a longer time, which might lead buyers to think that your home may have a particular problem that has not been sold.

Yes you can always use the real estate valuation websites for approximate estimates, but remember the main advantage of real estate agents over you is that they are fully acquainted with your neighborhood and market, they also have the power of comparative analysis of other homes sold in your area. In addition to being trained how to handle this process, they also have access to comparative tools to do this specialized research.

Final words

Eventually, if you are insisting on going for For Sale By Owner(FSBO): it would only be wise to sell your house by yourself if you already have a strong potential buyer and a real estate attorney to help you with all the paperwork. Otherwise, if there’s no interested buyer available, you better be sure about what you’re getting into.

Read More: Mistakes to avoid when selling your house

It's simple to get a great REALTOR® with this QUICK and easy online service

Find a Top Toronto Real Estate Agent within a few clicks! Whether you are selling your home or buying your first home! By answering a few questions you get matched with a Top REALTOR®!

Mark was amazing to work with. He anticipated my questions and needs from start to finish, and I trusted him completely. It was obvious that he had my best interests at heart. Mark’s personality made the search for a new home fun, but I never doubted his seriousness in finding me the best home he could. He went to bat for me without hesitation and found me exactly what I needed, taking care of every detail. It made the process exciting, enjoyable and stress free. I would highly recommend him to any future home buyers or sellers!

Breanne M


Ari is the most pleasurable person I have ever dealt with before. He never once pushed me towards anything I didn’t want, which is rare in this space and really cared about what I really wanted. You can really feel it from his actions. He catered his service to my needs. He was very patient, hard working, diligent, on top of things and real with me about the situation of the market. The quality of service was very high, not just for this industry but in general. He guided me personally through the contract process in person and made it absolutely painless. Such a reliable guy anybody would refer to their friends. I would definitely recommend Ari!

Bo L


communication throughout the entire process making it smooth, transparent and timely. I recently got transferred to Toronto for work. I was scared I was not going to find a place in Downtown that met both my expectations and my budget, as the Downtown market is highly competitive. I am thankful that Ari took the hassle out of the apartment hunt. He delivered great listings that met and exceeded my expectations, he was always on top on arranging viewings and willing to make accommodations to fit my busy schedule. This allowed me to find a desirable place on my first week here in Canada. I appreciated his time and dedication, it was such a relief knowing that he was invested on my best interest. I can’t recommend him enough.



Ari was quick to understand my needs and steer me in the right direction. His professionalism and warmth made the process of finding a suitable home a lot less stressful than it could have been. He quickly arranged times to visit places I was interested in, which was one of the reasons I could seize a good deal and get a nice home in a good location. He is patient, friendly and knowledgeable and he definitely provides an above average service. I have nothing but good things to say about him and recommend him to everyone looking for a realtor.

Dario Machado


Dear Ari, I wanted to thank you for finding me my dreamed condo ! Ari is a very reliable and dynamic person, thanks to his professionalism he found me the perfect condo in less than 24 hours !! As a newcomer in Toronto, I was not familiar with renting process but Ari made it easy, fast and really stress free for me, he was very helpful. I am really happy for the high quality of the service he provides and I will recommend him to everybody without a doubt.



Oh Ari, In this crazy game of downtown real estate it is quite difficult to find an agent that is timely, true to his word, and a joy to be around. Not only did you make the search process very easy but how quick you put everything together when I was ready to make an offer was phenomenal. The online process really saved me a lot of time and explained everything very well. Most of all though your attitude and humor really made things enjoyable and you were very accommodating to whomever I brought with me on my viewings. I would definitely refer Ari to anyone looking for property downtown. He won’t disappoint.



Hey Ari, I’ve had a few experiences with agents trying to find me a unit in the past, and not all of them I’ve had a helpful experience with. Ari was very friendly and attentive to my needs. It was clear he understood what I was looking for and provided me with lots of great options! He found me a great unit under my price range that I love and made the process of applying and renting it so easy. He did all the leg work and the only thing he needed me to do was sign my name. If anyone is looking for an agent to help find them a place to live I’d send them to Ari without a doubt.

Megan D