FSBO vs. Broker Sales: What the Data Really Says

I’ve long had a fascination with FSBO (For Sale By Owner) sales. Maybe it’s the independence of the seller, maybe it’s the “can I really do this on my own?” spirit, or maybe it’s just my curiosity as a real estate attorney. Over the years, I’ve been on a quiet quest for independent, hard data comparing FSBO sales to brokered sales—not the anecdotal stories you hear at open houses, and not the numbers that come out of Realtor trade groups. We’ve even written about this in past blogs (see our earlier post here for background).

The Famous Collateral Analytics Study:

One of the most influential independent studies of FSBO sales came from Collateral Analytics in 2017. That study analyzed more than a million sales across U.S. markets and found something eye-opening: FSBO homes consistently sold for less than agent-listed homes—about 5.5% lower on average.

In other words, sellers who tried to “save the commission” often gave up at least that much, and sometimes more, in the final sale price. The study concluded that professional staging, wider MLS marketing exposure, and broker-to-broker cooperation all contributed to higher prices in agent-assisted sales.

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Fast Forward: Clever’s 2024 Study:

More recently, Clever Real Estate published a 2024 nationwide study on FSBO seller outcomes. This survey of over 650 home sellers confirms much of what Collateral Analytics suggested years ago—and gives us fresh numbers that are even more striking in today’s market.

Here are five of the most telling statistics from the Clever study:

1. Agent-represented sellers earned $79,000 more than FSBO sellers. The average profit for sellers with an agent was $207,500 compared to $128,500 for those who sold without one.

   
   

2. Most FSBO sellers regret their choice. A full 80% of FSBO sellers said they had regrets, often wishing they had received more offers or sold at a higher price.

   
   

3. Buyers don’t trust FSBO sellers. More than half (53%) of FSBO sellers reported that buyers didn’t trust them because they weren’t working with an agent—a big disadvantage in negotiations.

   
   

4. Pricing is a major challenge. Nearly half of FSBO sellers (49%) later admitted they had priced their home incorrectly, while 73% of agent-assisted sellers felt their agent priced it right.

   
   

5. Many FSBO sellers end up turning to an agent anyway. An astounding 87% of FSBO sellers said they’d consider hiring an agent if their home didn’t sell quickly, with more than half saying they’d switch within two months.

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What This Means for Buyers and Sellers in Massachusetts:

So, what’s the bottom line? Selling your home without a broker might sound like a way to save money on commission, but the research consistently shows that you risk leaving significantly more money on the table. Add in the stress of marketing, negotiating, and handling legal paperwork on your own—and it’s no surprise that so many FSBO sellers eventually call in an agent.

At Vanderveen Law, we’ve seen these dynamics play out in our transactions many times over the years. Whether you’re buying or selling, it pays to understand how the method of sale can affect both price and peace of mind.

If you’re curious about FSBO versus broker sales—or want to read about how one FSBO seller left tens of thousands on the table, check out our earlier post here. And as always, if you have questions about your own real estate transaction, our team is here to help you navigate the process.

📞 Have questions? Reach out anytime: www.timvanderveenlaw.com

***This article is intended for general informational purposes and should not be construed as legal, tax or other professional advice. Prior to acting on any information in this article, you should seek legal, tax or other relevant professional counsel.***