The cost difference between listing a house for sale with an agent and selling it by oneself primarily comes down to the commission fee paid to the real estate agent. When working with an agent, sellers typically pay a commission of 5 to 6 percent of the home's sale price, which is split between the seller's agent and the buyer's agent. For example, if a house sells for $200,000 at a 6 percent commission, the seller would pay $12,000 in agent fees.
On the other hand, when selling a house by oneself (also known as for sale by owner or FSBO), there is no need to pay agent commissions. However, sellers may still need to cover various fees and expenses associated with the sale, such as advertising costs, legal fees, and title insurance. These costs can vary widely depending on the specific circumstances of the sale.
In general, the cost of selling a house with an agent is higher due to the commission fees, but working with an agent can also bring benefits such as greater exposure to potential buyers and professional guidance throughout the sales process. For those who are comfortable handling the sales process on their own, selling a house as a FSBO can potentially save thousands of dollars in commission fees.