What Does Direct to Seller Mean in Real Estate?
A direct to seller real estate deal is a transaction where the buyer communicates and negotiates directly with the homeowner instead of going through a listing agent. These deals are common in FSBO sales, investor acquisitions, and off-market opportunities where no listing agent is involved.
Direct to Seller: Simple Definition
A transaction is considered direct to seller when a buyer contacts the homeowner privately—without going through an agent or MLS listing. These deals typically occur with FSBO sellers, investors looking for off-market opportunities, or homeowners approached directly by buyers.
Because there is no listing agent, the seller keeps more of their proceeds and has more control over negotiations and pricing.
How Direct to Seller Deals Work
In a direct to seller transaction, the process typically looks like this:
- Buyer contacts seller directly by phone, email, or in person.
- No listing agent represents the seller.
- The property may be off-market or FSBO.
- The buyer and seller negotiate price, terms, and concessions without a listing agent’s involvement.
- The seller may still offer seller credits or seller concessions if needed.
- Both sides may still use title, escrow, or attorneys to complete the transaction.
These deals are often faster and less expensive due to reduced commissions and simplified decision-making.
Examples of Direct to Seller Deals
Here are three common situations where a buyer negotiates directly with the homeowner instead of going through a listing agent:
1. FSBO Buyer Contacts the Owner Directly
A homeowner lists their property as FSBO. A buyer sees the yard sign, calls the seller directly, tours the home, and both parties negotiate price and terms without a listing agent involved.
2. Investor Approaches a Seller Off-Market
An investor looking for rental properties identifies a home that fits their criteria. The home is not listed on the MLS. The investor mails the owner, negotiates directly, and purchases the property without paying listing commissions.
3. Wholesaler Secures a Contract Directly With the Seller
A real estate wholesaler markets to distressed homeowners and negotiates a purchase agreement directly with the seller. The wholesaler then assigns the contract to an end buyer for a fee, all without the property ever being listed with a real estate agent.
Why Buyers and Sellers Prefer Direct to Seller Deals
- Sellers avoid paying a listing agent commission (often 2.5%–3%).
- Buyers may secure better pricing due to low competition.
- Negotiations are simpler with fewer parties involved.
- Homes may sell faster because the process is streamlined.
- Investors get access to off-market properties before they appear on the MLS.
FSBO sellers benefit the most since they already plan to sell without agent representation.
Direct to Seller vs. MLS Listing
| Feature | Direct to Seller | Traditional MLS Listing |
|---|---|---|
| Exposure | Low – private negotiation | High – national visibility |
| Competition | Low | Moderate to high |
| Costs | No listing agent commission | Listing agent fees apply |
| Buyer Agent | Optional | Common |
| Best For | FSBO & investors | Traditional home sellers |
FSBO Tip: Direct to Seller Doesn’t Mean Limited Exposure
FSBO sellers can combine direct negotiations with broad MLS exposure by using a Flat Fee MLS service. This keeps you in control while reaching buyers on Zillow, Realtor.com, and thousands of IDX websites.
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