One of the main reasons homeowners choose to sell For Sale By Owner (FSBO) is simple: they want to save money by avoiding hefty real estate commissions. But even if you’re handling the sale yourself, one big question often comes up:
👉 Should you offer a commission to a buyer’s agent?
It’s a decision that can significantly affect how quickly your home sells — and for how much. While skipping commission altogether might sound appealing, there are strategic reasons why many FSBO sellers choose to offer one anyway.
Let’s break down how buyer’s agent commissions work, the pros and cons of offering them, and how to decide what’s right for your sale.
🏡 How Buyer’s Agent Commissions Work
In a traditional real estate transaction, the seller pays the total commission (usually 5–6% of the sale price), which is split between the listing agent and the buyer’s agent. For example:
- Listing agent: 2.5%–3%
- Buyer’s agent: 2.5%–3%
As a FSBO seller, you’re not hiring a listing agent — so you’re saving that half of the commission. But the buyer’s agent is a separate party representing the buyer’s interests, and they typically expect compensation for their work.
💡 Example:
If you sell a $400,000 home:
- Traditional sale: ~6% commission = $24,000 (split ~$12,000 each).
- FSBO sale + buyer’s agent commission: ~2.5% = $10,000 (savings ~$14,000).
- FSBO sale with no buyer’s agent commission: $0 — but potentially fewer buyers.
🤔 Why Buyer’s Agent Commissions Still Matter — Even for FSBO Sellers
Some FSBO sellers think skipping commissions altogether will save them thousands. But here’s the catch: most buyers work with agents. According to the National Association of Realtors (NAR), nearly 90% of buyers are represented by an agent during the home-buying process.
And that agent’s compensation is often tied to the seller paying a commission. If you don’t offer one, two things can happen:
- Buyer’s agents might avoid showing your home — or prioritize listings that do offer compensation.
- Buyers might still want your house — but they’ll expect you to lower the price so they can pay their agent’s fee themselves.
💡 Pro Tip: Offering a buyer’s agent commission doesn’t mean you’re giving up all your savings. You’re still saving the listing side (typically half the total commission) while widening your buyer pool.
✅ Pros of Offering a Buyer’s Agent Commission
1. Increased Exposure and Showings
Most buyer’s agents use the MLS (Multiple Listing Service) to search for properties — and they often filter or prioritize listings that offer standard commission rates. By offering a commission, your home is more likely to appear on their radar and get shown to serious buyers.
2. Faster Sale Timeline
More showings mean more competition — and more competition can mean a faster sale. If your property sits on the market too long, buyers might assume something’s wrong with it. Offering a commission can help avoid that slow start.
3. Access to Qualified Buyers
Buyers represented by agents are usually pre-approved and ready to purchase. Without a buyer’s agent involved, you might spend more time dealing with unqualified leads or casual browsers.
4. Smoother Negotiations and Closing Process
Real estate agents handle negotiations, contracts, deadlines, and paperwork every day. Having a buyer’s agent involved can make the process more efficient — and reduce the chance of errors or delays that could derail your sale.
5. You Still Save Money Overall
Even if you offer a 2.5%–3% commission to the buyer’s agent, you’re still saving the listing-side fee — which often amounts to thousands of dollars.
❌ Cons of Offering a Buyer’s Agent Commission
1. Reduced Savings
The obvious downside: paying a buyer’s agent commission eats into your total profit. On a $400,000 sale, a 2.5% commission is $10,000 — not a small amount.
2. Perception of “Double Paying”
Some FSBO sellers feel frustrated that they’re doing the work of marketing and showing the home but still paying an agent. This is especially true if the buyer’s agent isn’t heavily involved in the negotiation or if the buyer is already interested.
3. Less Negotiating Flexibility
Offering a commission means factoring that cost into your pricing strategy. If you’re selling on a tight margin or need a certain net amount from the sale, this expense can limit how much room you have for negotiation.
📉 What Happens If You Don’t Offer a Commission?
You can absolutely sell your home without offering a buyer’s agent commission — and some FSBO sellers do. But it’s important to understand the potential consequences:
- Reduced buyer pool: Agents may not prioritize showing your property if it doesn’t offer compensation.
- Longer time on market: Fewer showings often mean a slower sale.
- Price pressure: Buyers might offer less if they know they’ll have to pay their agent out-of-pocket.
- Negotiation challenges: Agents may try to negotiate the commission into the offer anyway, reducing your net proceeds.
💡 Pro Tip: If you choose not to offer a commission, make that clear upfront so buyers and their agents know what to expect — and be prepared for more direct negotiations.
💼 Middle-Ground Options to Consider
You’re not stuck with an “all or nothing” decision. Many FSBO sellers use creative strategies to balance cost savings with buyer appeal.
1. Offer a Reduced Commission
Instead of the standard 2.5%–3%, offer a smaller commission (e.g., 2% or a flat fee). This can still incentivize agents to show your home while saving you money.
2. Offer a Bonus for a Quick Sale
Some sellers offer a small bonus (e.g., $1,000) if the buyer’s agent closes the deal within a certain timeframe. It’s a creative way to stand out in a competitive market.
3. Negotiate the Commission Into the Deal
If a buyer’s agent presents an offer without a commission included, you can negotiate it as part of the purchase agreement — either splitting the cost or building it into the final price.
📊 Pricing Strategy: Factor Commission Into Your Asking Price
If you do decide to offer a buyer’s agent commission, build it into your pricing strategy from the start. This way, you maintain your target net proceeds without unexpected surprises later.
✅ Example:
- You want to net $390,000 on your home.
- Buyer’s agent commission: $10,000 (2.5%).
- List price: $400,000.
This ensures you still meet your financial goals while remaining competitive in the market.
💡 Pro Tip: Buyers typically care more about the total price than how commissions are structured. A slightly higher price that includes commission is often more appealing than a lower price with additional buyer costs.
🏁 Final Thoughts: Commissions Are a Strategic Choice — Not a Rule
There’s no one-size-fits-all answer to whether you should offer a buyer’s agent commission as a FSBO seller. It depends on your market, your priorities, and your comfort level with negotiating directly with buyers.
However, here’s the reality: offering a buyer’s agent commission can significantly increase your visibility, speed up your sale, and attract more qualified buyers. Even though it means parting with some of your savings, it often pays off in the form of a higher sale price, a faster transaction, or fewer complications during closing.
If your goal is to maximize exposure, sell quickly, and attract serious buyers, offering a commission is often a smart, strategic move. But if you’re in a hot seller’s market with high demand and low inventory, you may be able to skip it — or offer less — and still achieve your goals.
✅ Final Tip: Think of buyer’s agent commission as a marketing expense rather than a cost. It’s an investment in reaching more buyers — and the right buyer is the one who ultimately writes the offer that sells your home.
