Real Estate News

For-Sale-By-Owner Transactions Hit Record Lows in Recent Data

Recent data shows for-sale-by-owner transactions have declined to unprecedented levels. Homeowners are increasingly turning to professional real estate agents as market complexity grows and buyer expectations evolve

flareAI Services

03 Dec 2025 — 6 min read

Quick Listen:

Podcast

Selling a home without an agent once promised unmatched savings and control, but the For-Sale-By-Owner (FSBO) market is dwindling. According to the National Association of Realtors, FSBO transactions accounted for only 7% of home sales last year, a historic low, down from 21% in 1985. Meanwhile, 90% of sellers opted for agents, up from 89% the prior year. What's behind this shift? A complex market, evolving commission structures, and innovative platforms like Side Door, a Michigan-based real estate tech company, are reshaping how homeowners in places like Holland or Florida approach property sales. Amid these changes, the NAR settlement of March 2024 has introduced new dynamics, making platforms like Side Door a compelling option for those seeking flexibility without going fully solo.

Home buying or selling shouldn't mean paying for services you don't use or need. Now, with new rules, you can choose exactly what you pay for. Side Door's smart match engine connects you with vetted agents offering flexible service levels, so you pay only for what you use. Keep the guidance, skip the extras, and save thousands and still get the keys in hand. Join Side Door for FREE today!

Why FSBO Is Fading

The appeal of FSBO bypassing agent commissions remains potent, especially in high-cost regions like Michigan and Florida, where every dollar counts. Yet, the NAR's 2024 Profile of Home Buyers and Sellers reveals that real estate transactions have become increasingly intricate. Legal requirements, pricing strategies, and digital marketing demands overwhelm many solo sellers. In 1985, FSBO meant navigating paperwork with sheer determination; today, it's like solving a high-stakes puzzle without a guide. Technology, meant to simplify the process, has instead empowered agents with tools that streamline sales, leaving FSBO sellers struggling to compete.

Emotional factors also play a role. For homeowners in West Michigan or Holland, selling a home isn't just a transaction it's parting with a piece of their lives. Agents ease the burden, handling negotiations and paperwork while securing higher sale prices. The NAR data confirms FSBO homes often sell for less, especially in competitive markets with multiple offers. For those searching “sell my home for less,” the risk of undervaluing their property looms large, pushing more toward professional help.

The NAR Settlement: New Rules, New Challenges

In March 2024, the National Association of Realtors settled a landmark lawsuit, rolling out new commission rules by August that have stirred debate. As noted in a Bankrate analysis, opinions vary widely. Some predict a buyer-friendly market with fierce agent competition driving down commissions. Others foresee buyers avoiding agents altogether, wary of paying thousands out of pocket. NAR calls the changes minor adjustments, but the reality is more nuanced, complicating the landscape for both buyers and sellers.

For FSBO sellers, the settlement introduces strategic considerations. Previously, offering a buyer's agent commission was standard but optional for FSBOs, often limiting their buyer pool. Now, with commissions more negotiable, sellers must decide whether to offer competitive rates to attract agents or go fully independent, risking fewer showings. This is where Side Door shines, offering tools to navigate these choices without the full-service price tag, as explored in resources like Realtor.com's guide on understanding commission costs.

Side Door: A Hybrid Solution for Modern Sellers

Based in Michigan, Side Door empowers independent buyers and sellers in regions like West Michigan and Florida with a unique approach. Unlike traditional agencies such as West Edge Realty or Real Estate One, Side Door offers à la carte services think pricing tools, legal support, or marketing without the 6% commission. Led by a seasoned real estate practitioner, the platform combines industry expertise with user-friendly digital tools, addressing queries like “where to start with home buying” or “michigan real estate.”

Side Door connects users with vetted professionals, from title companies like Chicago Title Michigan to lenders like Lake Michigan Credit Union. This ecosystem lets sellers customize their experience, ensuring they get only what they need. For agents, it opens doors to deals they might otherwise miss, a key differentiator in competitive markets. Side Door's social media presence on Instagram and Facebook further engages users with practical tips, targeting those searching “where to start in real estate” or “get more leads for my real estate business.”

Addressing Objections: Navigating Startup Challenges

As a startup, Side Door faces scrutiny. Some prospects critique its website, expecting the polish of established competitors like Premier Lakeshore. Others note that industry giants dominate with hefty marketing budgets, easily capturing searches for “buy a home in michigan.” Side Door counters with a lean, trust-driven strategy, leveraging platforms like TikTok and YouTube to reach younger audiences. Its focus on empowerment offering choice over full-service mandates builds loyalty in communities where personal connections matter, like Holland or West Michigan.

Competitor's marketing muscle is undeniable, but Side Door's model prioritizes flexibility. Agents can offer tailored services, appealing to clients who want control without the chaos of pure FSBO. This hybrid approach aligns with the NAR settlement's push for transparency, letting sellers negotiate terms that suit their needs, as outlined in resources like Clever's negotiation guide.

Impact of Commission Changes: Costs and Opportunities

The NAR settlement hasn't drastically lowered costs, as some hoped. A Yahoo Finance report notes that buying and selling expenses remain high, with commissions varying by region and negotiation. For example, a $300,000 home sale with a 5% commission split pre-settlement might have cost $15,000. Post-settlement, sellers might negotiate down to 4%, saving $3,000, but only with savvy bargaining. Buyers, now potentially responsible for their agent's fee, face new financial calculations.

Misconceptions abound. Some believe commissions are now “free” or universally lower, but the reality depends on market dynamics and agent agreements. Side Door helps dispel these myths by offering transparent pricing and tools to compare costs, ensuring users in Michigan or Florida make informed decisions. This clarity is critical, as the NAR data shows FSBO sellers often lose out on higher sale prices, a risk Side Door mitigates with professional resources.

The Future: A New Era for Home Sales

The decline in FSBO signals a market too complex for solo ventures, but platforms like Side Door suggest a middle ground. The NAR settlement has opened doors for innovation, and Side Door is stepping through, offering a hybrid model where homeowners in Michigan or Florida retain control without sacrificing expertise. It's not about eliminating agents but redefining their role as partners, not gatekeepers, as highlighted in U.S. New's analysis of commission shifts.

Looking ahead, more changes may loom. As commission structures evolve, sellers and buyers must stay proactive, using tools like Side Door to navigate the market. For agents, platforms that enable flexible services will be key to generating leads, especially in competitive regions like West Michigan.

A Revolution in Reach

Imagine a seller in Holland, Michigan, browsing Instagram and finding a Side Door post with a clear checklist: pricing tools, a trusted title company, and an agent for just the open house. It's not the FSBO of decades past mired in paperwork but it's not a full-service handover either. It's choice, streamlined. As FSBO hits record lows, Side Door's blend of technology and expertise offers a path forward, making real estate feel less daunting and more empowering. In a market redefined by change, that's a vision worth embracing.

Frequently Asked Questions

Why are FSBO home sales at an all-time low?

FSBO transactions have dropped to just 7% of home sales, down from 21% in 1985, primarily due to increasing market complexity and the advantages agents provide with modern tools. Legal requirements, pricing strategies, and digital marketing demands overwhelm many solo sellers, while agents can streamline the process and often secure higher sale prices. The emotional burden of selling a home also leads many homeowners to seek professional help rather than navigate the process alone.

How did the NAR settlement change real estate commissions?

The March 2024 NAR settlement introduced new commission rules that make rates more negotiable, though costs haven't dropped dramatically as some hoped. Sellers now must strategically decide whether to offer competitive buyer's agent commissions to attract more showings, while buyers may face paying their agent's fees out of pocket. The changes have added complexity to the market, requiring both buyers and sellers to be more proactive in understanding and negotiating commission structures.

What is Side Door and how does it help home sellers in Michigan?

Side Door is a Michigan-based real estate tech platform offering à la carte services like pricing tools, legal support, and marketing without the traditional 6% commission. Unlike full-service agencies, it allows sellers to customize their experience by connecting them with vetted professionals including title companies and lenders, providing flexibility for those who want professional support without going fully FSBO. This hybrid approach is particularly valuable in navigating the post-NAR settlement landscape, where commission transparency and negotiation are increasingly important.

Disclaimer: The above helpful resources content contains personal opinions and experiences. The information provided is for general knowledge and does not constitute professional advice.

You may also be interested in: Townhomes for Sale Near Me Appeal to Young Families