The FSBO Trap: Why Selling "For Sale By Owner" Might Cost You a Fortune

By Adam Martin Team Lead, Loxley Martin | Top-Rated Dayton & Greene County Realtor

I respect the hustle. I really do.


You sit down with a calculator, look at your home’s value—let’s say $300,000—and then you calculate the commission. You see that number (thousands of dollars), and you think: “Why should I pay a realtor when I can just stick a sign in the yard and post it on Zillow myself? I’ll save a fortune.”

It is a logical thought. But in my years serving Dayton and Greene County, I have seen this scenario play out dozens of times. And unfortunately, the math rarely works out the way sellers hope.

Here is the hard truth about For Sale By Owner (FSBO) in the current Ohio market, and why "saving" that commission fee often results in walking away with less money in your pocket.

The Statistic You Can't Ignore: The "26% Gap"

If you take nothing else away from this article, remember this number. According to data analyzed from recent sales, FSBO homes often sell for nearly 26% less than agent-listed homes.

On a $300,000 house, a 26% difference is $78,000. Even if you "save" $18,000 in commissions, you are still losing $60,000 in net equity.

Why does this happen? It isn't because you aren't smart. It's because the market treats FSBO listings differently than professional listings.

1. You Attract "Sharks," Not Families

When a lovely family looks for a home in Beavercreek or Bellbrook, they are usually working with an agent. That agent scans the MLS. If your home isn't there, they often miss it.

So, who does call you?

• Bargain Hunters: Buyers who see "For Sale By Owner" and read it as "For Sale On Clearance."
  
  
• Investors/Flippers: Professional negotiators who want to buy your house for cash at 70% of its value.
  
  
• The Commission Deductors: Even if a buyer does make an offer, their first thought is, "Well, they aren't paying a realtor, so I'm going to knock 6% off my offer right now."
  
  

You don't save the commission. You usually end up giving it to the buyer in the form of a lower price.

2. The "Safety & Screening" Problem

When I list a home, no one steps foot inside unless they have been vetted or accompanied by a licensed agent. We know who they are.

When you sell FSBO, you are essentially opening your front door to strangers from the internet.

• Do you know if they are pre-approved for a mortgage?
  
  
• Do you know if they can actually afford $300,000, or are they just looking for fun?
  
  
• Are you comfortable negotiating face-to-face with someone who is criticizing your decorating to drive the price down?
  
  

My job is to be the buffer. I filter out the "tire kickers" so you only deal with serious, qualified offers.

3. The Legal Minefield (Ohio Disclosures)

Real estate paperwork in Ohio is not optional. Even if you sell FSBO, you are legally required to provide specific disclosures, including the Residential Property Disclosure Form.

• Did you disclose the basement seepage from three years ago?
  
  
• Did you know about the "knob-and-tube" wiring rule?
  
  
• Did you fill out the Lead-Based Paint addendum correctly?
  
  

If you miss a disclosure, you open yourself up to lawsuits after the closing. When you hire Loxley Martin, we ensure every "i" is dotted and every "t" is crossed to protect you from future liability.

The Middle Ground

If you are absolutely dead-set on trying it yourself, I get it. But ask yourself: Is this the best use of my time and my biggest asset?

I have had many clients start as FSBO, spend four weeks stressed out and managing lowball offers, and then call me to take over. Usually, we re-launch the property, get it in front of thousands of agents, and sell it for more than their original asking price—covering my fee and then some.

You don't pay a realtor to put a sign in the yard. You pay a realtor to create a bidding war.

Curious about the "Net" difference?

Let’s run a scenario. I can show you a side-by-side comparison of what you might net as a FSBO versus what you could net with a professional strategy.

👉 Do the real math. Send me a message or DM "FSBO" and let’s talk numbers, not sales pitches.

Adam MartinTeam Lead, Loxley MartinYour Dayton & Greene County Real Estate Expert