Real Estate News

The Rise of For-Sale-By-Owner Transactions in Competitive Markets

For-sale-by-owner transactions are gaining momentum in competitive real estate markets as sellers seek greater control and cost savings. This trend reflects changing market dynamics and seller preferences

flareAI Services

14 Sep 2025 — 6 min read

Picture a homeowner in Holland, Michigan, hammering a “For Sale By Owner” sign into their lawn, determined to pocket thousands in savings. Meanwhile, in Florida's bustling coastal markets, another seller posts a polished video tour on Instagram, fielding direct offers from eager buyers. These snapshots reflect a growing trend in real estate, fueled by the NAR settlement that has reshaped how commissions work. As traditional models give way, For-Sale-By-Owner (FSBO) transactions are surging, especially in competitive regions. Sellers are seizing control, but the path isn't without pitfalls. Here's how FSBO is transforming the market and what it means for buyers and sellers.

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A New Era for Real Estate

In August 2024, the National Association of Realtors (NAR) finalized a settlement that upended decades-old commission structures. Previously, sellers typically paid 5-6% of the sale price, split between their agent and the buyer's agent. Now, commissions are fully negotiable, and buyer-side fees aren't automatically included, as outlined by US News. This shift has sparked a surge in FSBO transactions, particularly in high-demand areas like West Michigan and Florida's coastal cities. Platforms like Sidedoor are capitalizing on this change, offering tools to guide sellers with transparent pricing and access to vetted professionals lenders, inspectors, and title companies without the full-service agent price tag.

FSBO, where homeowners sell without an agent, isn't new, but its momentum is. In markets where homes sell fast, sellers see a chance to save big potentially $20,000 on a $400,000 home. Buyers, too, are drawn to direct negotiations, hoping to snag deals in competitive regions. Yet, the process demands savvy pricing, legal know-how, and marketing finesse. With digital tools and hybrid services, is FSBO ready to rival traditional sales?

What's Driving the FSBO Boom?

Several forces are fueling FSBO's rise. The NAR settlement has made commissions flexible, giving sellers leverage to negotiate or bypass agents entirely. In West Michigan, where low inventory drives fierce competition, homeowners are testing FSBO to maximize profits. Florida's coastal markets, with their influx of buyers, see similar trends. Yahoo Finance notes that while the new rules haven't slashed costs dramatically, they've empowered sellers to explore alternatives.

Technology is a game-changer. Platforms like Sidedoor offer a la carte services, letting sellers cherry-pick support say, a title company for closing or an inspector for compliance without committing to a full agent. Social media platforms, including Facebook, Instagram, and TikTok, have become marketing powerhouses. A well-crafted video can reach thousands, as seen in posts from local realtors like those on Todd VanHaitsma's Instagram. Additionally, flat-fee MLS services, which provide access to the Multiple Listing Service for a fixed cost, give sellers exposure once reserved for agents.

This digital shift dovetails with Sidedoor's mission. By connecting sellers to a network of professionals, it creates a hybrid model part DIY, part expert-guided that resonates in fast-paced markets. Sellers can list on the MLS, market on social media, and hire help as needed, all while keeping costs low.

Real Stories, Real Savings

In Holland, Michigan, a homeowner lists their four-bedroom home as FSBO, posting vibrant photos on a local Facebook group and a virtual tour on Instagram. Within a week, they've got multiple inquiries. They hire a title company, like Chicago Title's Holland office, for closing, saving an estimated $15,000 in commissions. In Florida, a seller in a competitive coastal market uses Instagram to showcase a beachfront condo, drawing pre-approved buyers through lenders like Lake Michigan Credit Union. By handling negotiations directly, they close quickly and keep more of the sale price.

Sidedoor's approach shines in these scenarios. Instead of replacing professionals, it integrates them selectively. A seller might pay a flat fee for MLS access, hire an inspector for $500, or consult an attorney for legal paperwork. This flexibility lets homeowners in competitive markets like West Michigan and Florida save thousands while avoiding the chaos of going fully solo.

The Hurdles of FSBO

FSBO isn't a golden ticket. Without MLS exposure, properties can languish, especially in slower markets. Pricing is another challenge: overprice, and buyers pass; underprice, and you lose money. Legal complexities disclosures, contracts, and navigating post-NAR commission rules can overwhelm unprepared sellers. List With Clever emphasizes that clear communication is key to avoiding commission disputes, particularly when buyer's agents expect compensation.

Perception poses another issue. Some buyer's agents avoid FSBO listings if commissions are unclear or low, a lingering challenge post-NAR settlement. Time is also a factor. Fielding inquiries, scheduling showings, and managing paperwork can feel like a second job. For every success story, there's a seller who underestimates the effort required, highlighting the need for strategic support.

Seizing the Opportunities

The rewards of FSBO are compelling. On a $500,000 home, skipping a 6% commission saves $30,000 money that can fund renovations, a new down payment, or retirement. Sellers gain control over marketing, showings, and negotiations, tailoring their strategy to their market. In hot regions like West Michigan or Florida's coast, where homes often sell above asking, direct engagement can accelerate deals.

FSBO platforms for MLS listings, then hire inspectors or attorneys as needed. This hybrid model balances autonomy with expertise, addressing common FSBO pain points while keeping costs down. As markets grow more competitive, this approach could redefine how homes are sold.

Expert Voices and the Road Ahead

Real estate professionals see FSBO's rise as inevitable. A West Michigan broker notes that FSBO market share is growing in suburban areas, where digital tools and local networks give sellers an edge. In Florida, agents report increased FSBO activity in coastal markets, driven by tech-savvy sellers and high demand. Looking forward, experts predict technology will further lower barriers, with platforms like Sidedoor leading the charge.

But caution is warranted. “FSBO can save money, but it's not without risks,” says a Florida realtor. “Sellers must price accurately, comply with legal requirements, and negotiate effectively.” The advice is clear: leverage digital tools, understand commission dynamics, and use professionals strategically to avoid costly missteps.

Navigating the Future of Home Sales

The rise of FSBO signals a broader transformation in real estate. The NAR settlement has opened the door to flexibility, letting sellers choose their path whether fully DIY or a hybrid model with platforms like Sidedoor. In competitive markets like Michigan and Florida, where every dollar counts, FSBO offers a way to maximize returns while staying in control. But success demands preparation: accurate pricing, legal compliance, and selective professional support are non-negotiable.

For homeowners eyeing FSBO, the landscape is rich with opportunity. Digital tools Facebook ads, Instagram tours, TikTok videos make marketing accessible. Services like Sidedoor bridge the gap, connecting sellers to vetted professionals for a smoother, more profitable transaction. As the industry evolves, the side door to selling your home might just lead to the best deal yet. Ready to take the leap? Explore how Sidedoor can guide you through the process, saving you thousands without sacrificing peace of mind.

Frequently Asked Questions

What impact did the NAR settlement have on FSBO sales and real estate commissions?

The August 2024 NAR settlement made real estate commissions fully negotiable and removed automatic buyer-side fees from listings, giving sellers more control over commission structures. This change has sparked a surge in FSBO transactions, particularly in competitive markets like West Michigan and Florida's coastal areas, as sellers now have more flexibility to bypass traditional agents or negotiate lower fees while still accessing professional services when needed.

What are the biggest challenges of selling a house FSBO and how can I overcome them?

The main FSBO challenges include accurate pricing, legal compliance with disclosure requirements, limited MLS exposure, and time-consuming tasks like fielding inquiries and managing paperwork. You can overcome these by using flat-fee MLS services for broader exposure, leveraging social media platforms like Facebook and Instagram for marketing, and selectively hiring professionals such as inspectors, attorneys, or title companies through platforms like Sidedoor for specific needs while maintaining cost savings.

How much money can I save by selling my house FSBO instead of using a real estate agent?

By selling FSBO, you can potentially save thousands in real estate commissions that typically range from 5-6% of your home's sale price. For example, on a $400,000 home, you could save around $20,000, while a $500,000 home could save you up to $30,000 by avoiding traditional agent fees. However, you may need to budget for selective professional services like MLS listing fees, inspections, or legal assistance.

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

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