Buying a home that’s listed For Sale by Owner (FSBO) can present unique opportunities—but also its own set of challenges. Unlike traditional sales involving real estate agents, FSBO transactions are more personal and direct, which can influence how negotiations unfold.
If you're preparing to negotiate the price of a FSBO home, here are three key factors that can help guide a successful strategy:
1. Know the Market: Research Comparable Sales
Before making an offer—or if you’re the seller setting a price—do your homework. Look at comparable homes (comps) in the area that have recently sold. Focus on homes similar in size, condition, and location.
Sellers often price FSBO homes slightly above market value to leave room for negotiation. If you're a buyer, use comps to justify your offer and keep discussions rooted in data. This gives you confidence during negotiations and can help avoid emotional price swings on either side.
2. Understand the Power of Bids
Whether you're selling or buying, the number of offers on the table shapes your approach.
As a seller, multiple bids can give you leverage to stick close to your asking price or choose the strongest offer—often the one with the fewest contingencies.
As a buyer, knowing there are competing offers may encourage a more competitive offer upfront. On the other hand, if the property has been on the market for a while with little interest, you may have more room to negotiate favorable terms.
3. Be Strategic with the Timeline
Timing matters in negotiations. If you're under pressure to move or close quickly, that urgency can give the other party leverage.
Sellers with flexible closing dates are more likely to attract buyers and negotiate from a position of strength.
Buyers who aren’t rushed can take time to evaluate the property, submit thoughtful offers, and negotiate confidently.
Whenever possible, keep the process flexible. A relaxed timeline reduces stress and keeps negotiations constructive.
Final Thoughts
Negotiating the price of a FSBO home isn’t just about dollars—it’s about preparation, patience, and communication. Whether you’re buying or selling, understanding the local market, recognizing your leverage, and maintaining flexibility can go a long way in securing a deal that benefits both parties.
If you are considering selling your home for sale by owner, trust attorney Paul McKenna to help you through the process.
