By Eric Berman, REALTOR® | The Eric Berman Team at Compass
TL;DR:
You can legally sell a Long Island home without a realtor (FSBO — For Sale By Owner) in NY, but NAR data consistently shows FSBO sales close at 15-20% lower prices than agent-assisted sales for similar homes. FSBO can work for specific scenarios: buyer already identified (family, neighbor, off-market inquiry), substantially unique property where standard marketing doesn't apply, or sellers with substantial real estate transaction experience. FSBO doesn't typically work when the goal is saving on commission — the price difference usually exceeds the commission savings. NY-specific requirements include completing the PCDS (mandatory since March 20, 2024, no $500 credit alternative), coordinating with a real estate attorney (NY is an attorney state), and handling transfer tax and Mansion Tax filings. Post-Sitzer/Burnett settlement changes require FSBO sellers to specifically decide about offering buyer's agent compensation. Flat-fee MLS services offer a hybrid alternative that provides MLS syndication without full listing agent representation. Fee-negotiated listing agent representation is another alternative worth considering.
What FSBO Actually Involves
Selling FSBO means handling every part of the transaction yourself. The specific work is more substantial than most sellers realize.
Pricing analysis. You determine the list price. Without OneKey MLS access (which requires real estate license), you're working from public records, Zillow/Redfin/Realtor.com estimates, and whatever comparable sale data you can find. Getting pricing right without full comp access is genuinely harder than it looks.
Marketing execution. You create the listing content, take or arrange photography, handle the MLS listing (if you use a flat-fee service) or non-MLS marketing (Zillow FSBO, Craigslist, yard sign, personal network). Marketing effectiveness varies substantially based on your execution quality.
Showing coordination. You schedule and conduct all showings yourself. This includes screening buyers (verifying pre-approval, understanding intent), being present for or coordinating showings, providing information about the property, handling security during showings.
Negotiation. You negotiate directly with buyers or their agents. This includes offer evaluation, counter-offer strategy, contingency negotiation, inspection response, and multi-offer coordination if one develops.
Contract and closing coordination. You work with your real estate attorney (NY requirement) on contract, PCDS completion, disclosure requirements, and closing coordination. Attorney handles the legal mechanics but you're driving the overall process.
Ongoing management. You handle all buyer questions, showing feedback, offer status, inspection coordination, and the general transaction management that a listing agent typically absorbs.
For sellers thinking through the broader alternatives, the listing agent selection guide covers the substantive agent interview framework.
When FSBO Actually Works
FSBO isn't a bad option in every scenario. Specific situations where it can produce reasonable outcomes.
Buyer already identified. Family member wants to buy the home. Adult child buying from parent. Neighbor who's been asking for years. Off-market inquiry from someone genuinely interested. When you already know who the buyer is and they know they want your specific home, FSBO makes real sense — most of the marketing work isn't needed.
Substantially unique property. Extremely unusual properties where standard marketing doesn't apply — a large piece of raw land, a specialty commercial-residential mixed use, a historic property with specific preservation considerations. In these cases, the buyer pool is niche enough that specialized outreach may work as well as MLS syndication.
Substantial real estate transaction experience. Sellers who've been through multiple transactions, understand negotiation dynamics, have solid pricing analysis instincts, and can execute marketing well. If you're a real estate professional yourself or a substantial investor, FSBO becomes more viable.
Very low-competition market with high buyer volume. In extremely tight inventory markets where any reasonable listing draws multiple offers, FSBO can produce solid outcomes because the market does much of the work. Long Island's current low-inventory environment offers some of this dynamic, though it's not enough to overcome the standard FSBO price gap.
Willing to accept the price gap. If you understand that FSBO typically closes at meaningfully lower prices than agent-assisted sales and are genuinely willing to accept that trade-off for specific reasons (speed, privacy, control), FSBO can be a reasonable choice made with clear eyes.
The NAR Data on FSBO Outcomes
NAR data across multiple years consistently shows FSBO sales closing at meaningfully lower prices than agent-assisted sales. The data is genuinely useful for informed decision-making.
15-20% typical price gap. FSBO sales typically close at 15-20% lower prices than agent-assisted sales for similar homes. This isn't marketing spin — it's consistent data across NAR studies over multiple years. For a $1M Long Island home, that's a $150,000-$200,000 difference.
Why the gap exists. Multiple substantive reasons: limited MLS syndication reach reduces buyer pool; buyer's agents avoid FSBO listings due to compensation uncertainty; pricing analysis is harder without full comp access; negotiation position weaker without professional representation; marketing execution typically less effective than professional standards.
Longer time on market. FSBO homes typically stay on market longer than agent-assisted homes. The longer market time itself often produces additional price reductions, contributing to the price gap.
The commission comparison. Post-Sitzer/Burnett, listing agent compensation runs 2-3% typically. Even if you offer 2-2.5% to a buyer's agent (which most sellers do), total commission runs 4-5.5% — meaningfully less than the typical 15-20% FSBO price gap. The math generally doesn't work when the goal is saving on commission.
Individual results vary. Averages don't determine individual outcomes. Some FSBO sales close at strong prices. Some agent-assisted sales close at weak prices. The 15-20% average reflects typical outcomes across many transactions.
The NY-Specific FSBO Framework
FSBO in New York has specific requirements that generic FSBO content misses.
NY is an attorney state. All NY real estate transactions require attorney coordination. You need a real estate attorney regardless of whether you use a listing agent. Attorney fees typically run $1,500-$3,500+ depending on transaction complexity. FSBO doesn't eliminate this cost.
The PCDS requirement. Effective March 20, 2024, NY sellers must complete the Property Condition Disclosure Statement (PCDS). The prior $500 credit alternative was eliminated. The current 56-question form covers property condition, environmental conditions, and (per the March 20, 2024 amendment) seven flood-related questions. Complete honestly with attorney guidance.
Transfer taxes. NY State Transfer Tax (0.4% of sale price) plus Mansion Tax (1% on $1M+ sales, paid by buyer but affects affordability) plus any specific municipal transfer taxes. NYC properties in Northeast Queens face additional NYC Real Property Transfer Tax. Your attorney handles the filings but you need to understand the amounts.
Nonresident seller withholding. If you've moved out of NY before closing (Florida, Carolinas, Texas, etc.), NY requires estimated state income tax withholding on the gain through Form IT-2663. Your attorney handles the filing but you provide tax basis information.
Municipal compliance. Certificate of occupancy chain, oil tank documentation, smoke and CO detector certification, village-specific requirements — all still apply to FSBO transactions. The Long Island paperwork guide covers substantive municipal compliance framework.
The Post-Sitzer/Burnett Buyer's Agent Compensation Decision
The August 17, 2024 NAR settlement changed how sellers work with buyer's agents. FSBO sellers face this decision without the guidance a listing agent would provide.
What changed. Buyer's agent compensation is no longer automatically included on MLS listings. Sellers now decide whether to offer buyer's agent compensation and how much. Buyers who've signed representation agreements with their agents typically expect either the seller to cover their agent's compensation or they'll cover it themselves.
Your options as an FSBO seller. Offer standard buyer's agent compensation (2-2.5% typically). Offer partial compensation. Offer zero and let buyers handle their own agent compensation. Each option has trade-offs.
Offering zero compensation. May narrow your buyer pool substantially. Many buyers with signed representation agreements will avoid listings that don't offer buyer's agent compensation because it requires them to cover an additional expense out of pocket.
Offering standard 2-2.5%. Maintains buyer pool access from represented buyers but reduces your net proceeds by the compensation amount.
Working through the decision. Your real estate attorney can guide the specific decision for your situation. This is one area where the loss of listing agent guidance matters meaningfully for FSBO sellers.
Flat-Fee MLS Services: The Hybrid Option
Flat-fee MLS services offer a hybrid FSBO option many sellers don't know about.
How it works. You pay a flat fee (typically $200-$1,000+) to a licensed brokerage that lists your home on OneKey MLS. Your listing gets full MLS syndication to Zillow, Redfin, Realtor.com, and buyer's agent networks. You handle everything else yourself.
What it solves. The biggest FSBO disadvantage is limited MLS syndication reach. Flat-fee MLS services address this specific gap while preserving the FSBO cost savings on listing agent commission.
What it doesn't solve. You still handle pricing analysis, marketing content, showings, negotiation, and contract coordination yourself. The flat-fee service just handles the MLS listing.
Long Island flat-fee options. Multiple licensed brokerages offer flat-fee MLS listing services in Long Island. Research substantive options based on service scope, fee structure, and reputation before committing.
Trade-offs to understand. Flat-fee services vary substantially in what they include. Some include only the MLS listing; others include limited support (contract templates, negotiation guidance). Understand exactly what you're getting.
The Post-Sitzer/Burnett Fee-Negotiated Listing Agent Alternative
Post-August 17, 2024 NAR settlement, listing agent fees are more genuinely negotiable than they used to be. This creates a substantive alternative many sellers overlook.
Fee negotiation is real. Listing agent compensation is no longer standardized at 6% or 3%. Post-settlement, fees are genuinely negotiable based on specific service level, property characteristics, and market conditions.
Reduced-service listing agent representation. Some listing agents offer reduced-fee representation with reduced service level (limited marketing, basic MLS listing, seller-handled showings). Others offer standard fee representation for genuinely full service.
The conversation to have. Before committing to FSBO, have a substantive conversation with 1-2 listing agents about specific fee structure, what's included, and what alternatives exist. You may find that a 1.5-2% listing agent representation produces meaningfully better outcomes than FSBO for less total cost than the FSBO price gap.
Common FSBO Mistakes on Long Island
Sellers who go FSBO often make specific mistakes that produce worse outcomes. Understanding the common patterns helps calibrate the decision.
Overpricing based on aspirational math. FSBO sellers often price high assuming the "savings" on commission justify a higher list price. Buyers don't care about your commission math; they care about the home's market value. Overpricing produces the same sit-and-reduce pattern for FSBO as for agent-assisted homes.
Underestimating marketing execution. Professional photography, staging photos, drone footage, video walkthroughs, written property description — these matter meaningfully for buyer interest. FSBO listings that skimp on marketing execution typically produce weaker outcomes.
Poor buyer screening. Not verifying buyer pre-approval or cash reserves before scheduling showings. Not understanding buyer intent (browsers vs. serious). FSBO sellers often waste substantial time on tire-kickers because they don't have the screening infrastructure listing agents provide.
Weak negotiation position. FSBO sellers often accept early offers below what proper negotiation would produce. Emotional attachment to the home affects negotiation decisions substantially without professional buffer.
Contract mechanics gaps. NY contract requirements are specific and technical. FSBO sellers relying only on standard forms without substantive attorney coordination often miss key negotiating opportunities or accept unfavorable terms.
Underestimating time commitment. FSBO is substantial ongoing work — showings, phone calls, emails, coordination. Sellers who underestimate the time commitment often burn out mid-listing and either accept a weak offer or pull the listing entirely.
A Recent Levittown FSBO Story
A recent Levittown seller wanted to try FSBO to save on commission. His Cape was in solid condition and he'd been in the home for 22 years. He'd talked with a few listing agents who quoted 5-6% total commission and decided FSBO was worth trying to save what he thought would be $35,000-$40,000 on a home he expected to sell for $700,000.
He listed on Zillow FSBO and put up a yard sign. Priced at $735,000 based on his own research. Showings started slowly — 3 showings in the first two weeks, mostly window shoppers rather than serious buyers. After 5 weeks with no offers, he reduced to $715,000. Two weeks later, still no offers, he reduced to $695,000. Received an offer at $675,000 from a buyer who wasn't well-qualified. Contract fell through after the buyer couldn't get financing.
At that point he decided to re-evaluate. Comparable Levittown Capes with substantive listing agent representation were selling in the $735,000-$755,000 range in the same weeks he was struggling. He interviewed listing agents post-Sitzer/Burnett and found one willing to represent him at 2.25% listing plus 2.25% buyer's agent compensation. The agent's substantive comp analysis showed his home should list at $739,000 with substantive preparation.
Two-week preparation, professional photography, MLS syndication, and Compass Coming Soon exposure produced 14 showings the first weekend after re-listing. Three offers within 8 days. Contract at $742,000 (0.4% above list) with a well-qualified financed buyer.
His net comparison: FSBO ended at $675,000 (fell through). Post-Sitzer/Burnett agent representation: $742,000 minus 4.5% commission ($33,390) equals $708,610 net. Net difference: about $33,000 better than what his failed FSBO offer would have produced. His situation was specific, but the pattern is common — the commission math typically favors agent representation when factoring in the FSBO price gap.
Where to Start
For Long Island homeowners considering FSBO, the right starting point is honest evaluation of whether the specific scenario justifies it. The home valuation tool is a quiet way to begin understanding what your home is actually worth without commitment.
For related context: the Long Island seller mistakes guide covers where FSBO fits alongside other decisions. The listing agent selection guide covers substantive agent interview framework and post-Sitzer/Burnett fee negotiation. The selling costs guide covers substantive fee framework. The Long Island pricing methodology guide covers substantive comp analysis. The home valuation guide covers what your home is actually worth.
The honest bottom line: FSBO is legal in NY and works for some Long Island sellers, but the NAR data consistently shows 15-20% lower prices for FSBO sales versus agent-assisted sales. FSBO makes sense in specific scenarios — buyer already identified, unique property, substantial seller experience — but rarely produces better outcomes when the goal is saving on commission. NY-specific requirements (PCDS since March 20, 2024, attorney coordination, transfer taxes, post-Sitzer/Burnett buyer's agent compensation decisions) create genuine complexity. Flat-fee MLS services offer a hybrid alternative. Post-Sitzer/Burnett fee-negotiated listing agent representation is worth substantive consideration before committing to FSBO. The commission math usually favors representation when the FSBO price gap is factored in honestly.
FAQs
Is it legal to sell a Long Island home without a realtor?
Yes. Selling without a realtor (FSBO — For Sale By Owner) is legal in New York. All NY real estate transactions require attorney coordination regardless of listing agent involvement, so FSBO doesn't eliminate attorney fees. FSBO sellers handle pricing, marketing, showings, negotiation, and coordination themselves while the attorney handles contract and legal mechanics. NAR data consistently shows FSBO sales close at 15-20% lower prices than agent-assisted sales for similar homes, so the honest question isn't whether it's legal but whether the specific work makes sense for your specific situation.
How much does FSBO typically save on commission?
Post-Sitzer/Burnett settlement, listing agent compensation runs 2-3% typically. If you also don't offer buyer's agent compensation, total commission savings could reach 4-5.5%. However, NAR data shows FSBO sales close at 15-20% lower prices than agent-assisted sales — meaningfully more than commission savings. For a $1M Long Island home, that's a $150,000-$200,000 price gap versus $40,000-$55,000 in commission savings. The math generally doesn't work when the goal is saving on commission. Post-Sitzer/Burnett fee negotiation with a listing agent often produces better net outcomes than FSBO.
What paperwork do I need for a Long Island FSBO sale?
Same as agent-assisted sales. NY Property Condition Disclosure Statement (PCDS — mandatory since March 20, 2024, no $500 credit alternative), NY State Transfer Tax filing, Mansion Tax filing if applicable ($1M+ sales), NYC Real Property Transfer Tax for Northeast Queens properties, certificate of occupancy chain, oil tank documentation, permit history, smoke and CO detector certification, and village-specific requirements where applicable. Your real estate attorney handles the legal mechanics but you're driving the overall process. The Long Island paperwork guide covers substantive framework.
Can I list my FSBO home on OneKey MLS?
Not directly — OneKey MLS access requires a real estate license. However, flat-fee MLS services allow FSBO sellers to get MLS listing exposure. You pay a flat fee (typically $200-$1,000+) to a licensed brokerage that handles the MLS listing. Your listing gets full syndication to Zillow, Redfin, Realtor.com, and buyer's agent networks. You handle everything else yourself. This hybrid option addresses the biggest FSBO disadvantage (limited MLS syndication reach) while preserving the FSBO cost savings on listing agent commission. Flat-fee services vary substantially in what they include.
Should I offer buyer's agent compensation as an FSBO seller?
This is a specific post-Sitzer/Burnett decision FSBO sellers now face. Buyer's agent compensation is no longer automatically included on MLS listings. Offering zero may narrow your buyer pool substantially — many buyers with signed representation agreements avoid listings that don't offer buyer's agent compensation. Offering standard 2-2.5% maintains buyer pool access but reduces net proceeds. Most FSBO sellers offer some buyer's agent compensation to maintain access to the represented buyer pool. Your real estate attorney can guide the specific decision. This is one area where the loss of listing agent guidance matters meaningfully.
By Eric Berman, REALTOR® | The Eric Berman Team at Compass
Eric Berman | Long Island & Queens Associate Broker | Compass
1468 Northern Blvd, Manhasset, NY 11030
(917) 225-8596 | eric@ericbermanre.com | theericbermanteam.com
