Transitioning Market Doesn’t Favor FSBOs
Wayne Porter
The Tri-Cities housing market is at an inflection point. The frenzy of the post-pandemic boom—defined by bidding wars and double-digit price gains—is fading. Market data show the region inching toward a balance, where neither buyer nor seller holds a dominant advantage. That shift changes not only how homes are priced but also how they’re marketed, negotiated, and closed. It’s also when professional expertise matters more than ever.

NETAR President
For years, one bit of “common knowledge” said that a hot market was the perfect time for homeowners to sell their properties themselves and skip the agent’s commission. But the numbers tell a different story – especially when the market is transitioning.
The National Association of Realtors® (BAR) reports that for-sale-by-owners (FSBOs) now represent just 7% of all home sales – the lowest share on record – while 90% of sellers used an agent.
Despite the array of online listing tools, most owners who begin the process on their own eventually hire a professional once they experience the realities of pricing strategy, marketing exposure, and contract management.
NAR’s Deputy Chief Economist Jessica Lautz explained why: “Even with the tremendous equity gains homeowners have had, no one wants to leave money on the table, and an agent can help determine the best-selling price and marketing strategy to find a qualified buyer.”
The long-term data support that view. FSBO market share has been declining for four decades – from about 20% in the mid-1980s to today’s single digits – even as technology has made DIY listing easier. And results tell the story. The median FSBO sale last year was $55,000 less than what it was when a Realtor® handled the transaction. The local number is less than the national average, but still significant.
The “do-it-yourself” route also comes with more stress and slower results. In a national study cited by Realtor® Magazine, 43% of FSBO sellers said buyers distrusted unrepresented transactions, and 40% admitted struggling to understand the purchase contract. Many were motivated by the promise of a quicker sale or avoiding commission costs—but ended up with a longer timeline and more frustration.
In today’s transitioning market, where nearly half of all closings follow a price reduction so strategic pricing is crucial. Getting a listing online is easy; positioning it correctly is the hard part. Agents analyze daily market movement, local absorption rates, and competing inventory to identify the “sweet spot” that attracts qualified buyers without leaving value behind. They also bring professional networks, exposure across multiple platforms, and marketing assets—like optimized placement and professional photography—that make a measurable difference.
The bottom line: as the market cools into balance, experience, data, and representation matter even more. Just as you’d hire a lawyer for a complex legal issue or a doctor for a medical one, a Realtor® provides the knowledge, negotiation skill, and peace of mind that help sellers make the most of this new, more deliberate housing cycle.
NETAR is the voice for real estate in Northeast Tennessee. It is the largest trade association in the Northeast Tennessee, Southwest Virginia region, representing over 1,800+ members and 100+ business partners involved in all aspects of the residential and commercial real estate industries. Weekly market reports and information for both consumers and members are available on the NETAR website at https://netar.us