Should You Use a “For Sale By Owner” Sign? The Surprising Truth About Its Impact on Your Sale
If you’re gearing up to sell your home on your own, the idea of sticking a “For Sale By Owner” (FSBO) sign in your front yard probably seems like a no-brainer. It’s a simple, low-cost way to start spreading the word, right? But before you plant that sign in the grass, it’s time to ask: Can FSBO signs actually help or hurt your chances of selling your home?
In this guide, we’ll dive into the real effects that a “For Sale By Owner” sign can have on potential buyers, uncover common misconceptions, and highlight the challenges sellers face when going solo.
The Price of Selling Without an Agent
Selling a home without a real estate agent might seem like an easy way to save money on commission fees, but the reality is a bit more complex. FSBO comes with its own unique set of hurdles, and often, they start with that very sign.
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Do FSBO Signs Help or Hurt a Sale?
A “For Sale By Owner” sign can be a double-edged sword. On one hand, it gives your home visibility. Passersby and neighbors will know it’s on the market, and local buyers might take notice. But on the other hand, that same sign can signal to buyers that you’re going the DIY route, which raises some red flags for many.
The truth is, FSBO signs often carry negative perceptions. While some buyers might be open to working directly with a homeowner, the majority prefer working with an agent. Statistics show that while buyers might be curious about a FSBO listing, most are more comfortable navigating the process through a professional.
Let’s take a closer look at the assumptions buyers may make when they spot a FSBO sign—and why those assumptions matter.
Common Buyer Assumptions About FSBO Signs
When potential buyers see a “For Sale By Owner” sign, they often make quick, sometimes unfair judgments. Buying a home is likely the biggest financial decision of their lives, so it makes sense they’d err on the side of caution. Here are some common concerns that arise from seeing a FSBO sign:
- Inexperienced Seller: Buyers may assume that you, the seller, are unfamiliar with the process, which makes the entire transaction feel riskier or more complicated.
- Document and Process Confusion: Without an agent involved, buyers might worry they’ll be left to figure out contracts, inspections, and other legal steps on their own.
- Cutting Corners: The sight of a FSBO sign can sometimes make buyers wonder if you’re cutting corners to save money, potentially risking the quality of the transaction.
- Overpricing Fears: There’s a chance buyers will assume the home is overpriced or that you’re unwilling to negotiate on price.
- Property Condition Concerns: Some buyers may wonder if you’re trying to offload a property with hidden problems or issues.
- Lack of Transparency: Without an agent as a middleman, buyers might worry that you’re not being fully open about the property’s history, condition, or legal issues.
- Trust Issues: For some, the absence of an agent raises doubts about the legitimacy of the sale. Is it part of a scam? Is the property involved in a legal dispute?
- Fair Housing Concerns: Buyers might worry that you won’t follow fair housing laws that protect against discrimination based on race, gender, nationality, or other protected categories.
While these assumptions don’t always turn out to be true, they can limit your pool of interested buyers and complicate negotiations.
The FSBO Seller’s Struggles: More Than Just a Sign
When you use a FSBO sign, you’re also facing challenges that could catch you off guard. Without an agent to handle the details, you could find yourself overwhelmed by the process. Here’s what you can expect:
- Unqualified Buyers: Without the screening process agents typically provide, you might get inquiries from people who are simply window-shopping and aren’t financially prepared to buy.
- Unexpected Visitors: A FSBO sign invites passersby to stop by unannounced. You could find yourself hosting a parade of curious neighbors and non-serious buyers.
- Lack of Agent Cooperation: Some agents won’t show FSBO homes to their clients, either because they prefer working with other professionals or because they don’t want to deal with the complexities of negotiating with an unrepresented seller.
- Security Concerns: Without an agent to handle showings, you’re responsible for vetting potential buyers and ensuring the safety of your home during viewings.
- Difficult Negotiations: Without a buffer between you and the buyer, discussions about price, repairs, or other terms can become personal and, at times, uncomfortable.
While these challenges don’t automatically make FSBO a bad choice, they are something to consider before you proceed.
Why FSBO Signs Are Fading in Popularity (And the Stats Behind It)
In today’s market, lawn signs aren’t the game-changers they once were. Most buyers no longer drive around neighborhoods looking for homes for sale. Instead, they’re online—searching listings from the comfort of their own home.
The latest data from the National Association of Realtors shows just how much the industry has shifted:
- 100% of buyers use the internet at some point during their home search.
- 64% of buyers start their search online or by contacting an agent—not by driving around looking for signs.
- 86% of buyers work with a real estate agent to find and purchase their home.
- 90% of sellers work with an agent to sell their property, leaving just a small fraction of the market for FSBO transactions.
- FSBO homes sold for $55,000 less on average than homes sold with an agent, a significant difference.
And for FSBO sellers, the biggest challenges tend to revolve around setting the right price, meeting deadlines, and handling the paperwork.
Do You Really Need a “For Sale By Owner” Sign?
While online listings are the dominant force in today’s real estate market, a FSBO sign can still have its place. It lets neighbors know your home is for sale and could even attract a buyer who happens to drive by. But it’s important to remember: a sign alone won’t sell your home.
If you rely solely on a FSBO sign, you’ll miss out on a vast pool of potential buyers who are searching online. Think of the sign as just one small piece of a larger marketing strategy—not your primary selling tool.
Should You Consider a Real Estate Agent?
If you’re feeling uncertain about going the FSBO route, you might want to team up with a top real estate agent. At HomeLight, we help you connect with the best agents in your area. Our data comes from over 27 million transactions and thousands of reviews, so we can match you with a local agent who fits your needs.
Is It Ever Illegal to Use a FSBO Sign?
In some areas, you might run into local restrictions or HOA rules about signage. Make sure to check with your HOA or local government before placing a sign in your yard to avoid any potential issues.
Tips for Making Your FSBO Sign Work Harder
If you decide a FSBO sign is worth using, make sure it looks professional. Here’s how to make sure your sign works as hard as possible for you:
- Skip the DIY sign: Handwritten signs look unprofessional and could turn potential buyers away.
- Use a professional sign: Invest in a durable, weather-resistant sign that presents a polished image.
- Leave “By Owner” off: Just say “For Sale” to avoid bias and encourage more inquiries.
- Add flyers: Include a flyer box with property details and contact info for passersby.
- Highlight key features: Use additional panels (called “riders”) to highlight important selling points.
- Include online links: Add a QR code or website URL for easy access to online photos and listings.
Alternatives to FSBO Signs: Broaden Your Reach
A FSBO sign is a great way to get local exposure, but it shouldn’t be your only tool. Here are some alternatives that can help you reach a wider audience:
- Zillow Listings: List your property on Zillow for free and gain visibility with local buyers.
- Social Media: Use platforms like Facebook, Instagram, and Nextdoor to advertise your property within your community.
- Flat-Fee MLS: Get your property listed on the MLS, which feeds into major real estate sites like Realtor.com.
Conclusion: Consider All Your Options
While FSBO signs still serve a purpose, they’re not the powerhouse they once were. If you want to sell for top dollar, it’s essential to have a solid marketing plan that goes beyond just a sign in your yard.
Whether you go FSBO or work with a real estate agent, we wish you the best of luck with your sale! If you’re interested in partnering with a top agent, HomeLight’s free Agent Match tool can help you find the perfect expert for your unique needs.