Buy a House for Sale by Owner (FSBO) in New York in 2025
Go Back To Previous PageQuick answer: “For Sale By Owner” (FSBO) means the homeowner is selling directly, without a listing agent — which can mean real savings, since there’s no listing commission baked into the price. It does not mean you should skip your own representation, though. FSBO deals include the same inspections, contracts, and legal paperwork as any other purchase. They just lack the one professional who usually protects your side of the table. And since the August 2024 NAR settlement, the seller paying your buyer’s agent fee is negotiable. It is not guaranteed. Settle this before you fall in love with a listing.
FSBO listings have a certain appeal. There is no listing agent between you and the seller. Sometimes the price is lower. The seller may not add extra to cover a commission. It can also feel more personal. You talk to the person who lives there. You are not talking to someone reading from a spec sheet. They also give you more rope to hang yourself if you go in unprepared. The seller may not be hiding anything on purpose. They just have no duty to share bad news. Here’s how to do it right in New York.
What Is an FSBO in New York?
An FSBO is a home the owner sells without a listing agent. There is no professional marketing the property. No one negotiates for the seller. No one manages the seller’s side of the transaction. Sellers choose this option mainly to avoid paying a listing commission. This can lead to a lower asking price than a similar agent-listed home. However, it is not automatic, and the discount is not always as large as buyers expect.
Do You Still Need an Agent to Buy an FSBO Home?
Not legally, but in practice, almost always yes. The reason is not the seller’s honesty. It is what an agent actually does. A buyer’s agent runs comps, coordinates the inspector, appraiser, and title company, and negotiates for you. They use market knowledge you may not have. The seller does not want you to gain it mid-negotiation.
Going solo means you become your own transaction coordinator for a major purchase. It is doable, like changing your own brakes. It works until it suddenly does not.
Who Pays Your Agent? (This Changed in 2024)
Before August 2024, sellers routinely covered the buyer’s agent commission as a matter of course. Since the NAR settlement took effect, that is no longer automatic. It is now negotiated. Buyers must sign a written buyer-broker agreement before touring homes.
The agreement clearly states how their agent will be paid. In a real FSBO deal, this matters even more. There is no MLS listing offering compensation. So, the seller’s contribution to your agent’s fee is a direct discussion. It is not an assumption.
This is exactly the kind of detail worth nailing down before you start touring, not after you’ve made an offer.
The Steps to Buying an FSBO Home in New York
1. Get Pre-Approved for a Mortgage
A pre-approval shows the seller you are a serious buyer. It is not someone just kicking tires. This matters more with an FSBO seller. They do not have an agent to pre-screen interest. They may take a lowball offer personally. A listing agent usually would not.
2. Sign a Buyer-Broker Agreement (If Using an Agent)
Post-2024, this is now a required step before your agent can show you homes. It is also where you settle the commission question above. This helps you avoid an awkward surprise at the time of the contract.
3. Tour the Home — And Actually Use the Owner
This is the one genuine upside of FSBO: nobody knows a house’s quirks like the person who’s lived in it.
Ask about the noisy radiator and the neighbor who throws parties. Ask which contractor fixed the roof. It’s the stuff no comp sheet will ever tell you. It’s also what Zillow photos are made to hide. Open every closet. Run every faucet. Do not let friendly talk about the prior owner’s garden stop a full check.
4. Schedule a Home Inspection — Every Time
Never skip this on an FSBO.
A home inspection is non-negotiable regardless of how the sale is structured, but it matters even more here: a seller without an agent also doesn’t have anyone reminding them what they’re legally obligated to disclose, and “I didn’t know” is a genuinely common excuse for undisclosed problems in owner-run sales — not always malicious, but not your problem to absorb either.
5. Verify, Don’t Just Trust
An FSBO seller isn’t bound by an agent’s professional and ethical rules. Their view of their home’s value, condition, and history is like that of any proud owner. It’s sincere, but not always factually accurate. Take it as a starting point, not a fact sheet. Remember that “the boiler is basically new” is what every homeowner says. On average, the boiler is not new.
6. Make Your Offer
Whether you negotiate yourself or use an agent, support your price with real comps. Do not rely on the seller’s asking price. In FSBO deals, the price is sometimes based on sentiment rather than market data.
7. Close
Same finish line as any other purchase: final mortgage approval, a clear title, and closing costs. It just has one less commission line item in the math.
Why FSBO Sellers Overprice More Often Than You’d Think
This is not a knock on any seller. It is what can happen when the person sets the price. They also raised kids there. They hosted every holiday there. They repainted every wall in the house they are selling.
Agents set prices using comparable sales because they have no emotional stake in the number. Owners set prices based on what the home is worth to them, which is a different math.
Come in with your own comps, pull yourself. Don’t be surprised if the first listing price needs gentle, reality-based negotiation.
The Paperwork Nobody Warns You About
New York real estate contracts are dense, even with a listing agent to explain them. In an FSBO deal, you often get a contract from the seller’s attorney. No one may explain the terms in plain English first.
A real estate attorney is not optional here. They will review the contract. They will run a title search. This confirms there are no liens on the property. They also serve as the safety net an agent would provide.
Skipping this step to save money is exactly backward: it’s the one corner not worth cutting on the biggest purchase most people ever make.
Pros and Cons of Buying FSBO in New York
| Pros | Cons |
|---|---|
| Potentially lower price (no listing commission baked in) | Seller may still price emotionally, not to market |
| Direct access to firsthand home knowledge | No listing agent enforcing disclosure obligations |
| Less competition — FSBO listings often get less exposure | Buyer commission is now a negotiation, not a given |
| More room to negotiate directly | You (or your agent) do all the coordination work solo |
FSBO Buyer FAQ
Do you need a realtor to buy a house that’s FSBO?
Not legally, but a buyer’s agent still protects your side in the negotiation. They coordinate inspections and paperwork. They also bring market knowledge that a seller may not share.
Does the seller pay for my buyer’s agent on an FSBO deal?
Not automatically under the 2024 NAR settlement. It is negotiable. It is worth agreeing with the seller before you tour. There is no MLS listing to set expectations either way.
What are the risks of buying a house without a realtor?
Missed disclosure issues, overpaying due to an emotionally priced listing, and handling complex legal paperwork without professional backup are the big three — a real estate attorney is worth having even if you skip an agent entirely.
Is an FSBO home cheaper than an agent-listed one?
Often, but not always. The seller may save on listing commission. But no law requires them to pass those savings to you. They may keep the money instead.
Should I still get a home inspection on an FSBO house?
Always. An FSBO seller has no listing agent to remind them about required disclosures. This makes independent verification more important, not less.
The Bottom Line
FSBO can be a good way to buy a home at a fair price. But “no agent for the seller” should not mean “no help for you.”This matters more now, since buyer-agent pay is negotiated. It is no longer an automatic cost for the seller. Bring your own advocate to the table, even if the seller didn’t bring theirs.
If you’re eyeing an FSBO listing, NestApple pays buyers up to 2% back at closing — representation that can pay you back, rather than just cost you.
Georges has been working in Wall Street for the last 16 years trading derivatives with hedge funds. He has been an active real estate investor for over a decade. Georges graduated from HEC Business School in Paris and holds a master in Finance from ESADE Barcelona.
