For Sale By Owner (FSBO)

Definition of "For sale by owner (FSBO)"

Thinking about selling your own home without an agent? You can. For Sale By Owner or FSBO is how it’s called in the real estate world. It's when a homeowner decides to sell his/her property on their own, with no help from a real estate broker or agent. However, if you're not sure if you want to sell you can always list your own property for rent which is known as for rent by owner (FRBO).

For Sale By Owner listings or FSBOs have become increasingly popular since the advent of the Internet. Specialized For Sale By Owner sites and social media have made selling your own house easier and not having to pay commission to an agent sure is great, but selling your own home can be a painful journey!

For sale by owner’s facts:

-   Lawsuits. FSBOs historically have a higher rate of scams than agent listed properties. When working with an agent who is unethical, you can report the agent to his association and try to settle the situation… what do you do with a home seller or home buyer who throws the contract out the window?

-   Time is money. Selling a house can take a long time. Selling your own house can take even longer. Having an agent go through all of the hassles of selling the house, producing paperwork and whatnots can save you a lot of time.

-   You’ll likely lose money. It is proven that selling your home without an agent actually makes you more prone to losing money in the transaction. Because agents have greater knowledge and tools to better project the Fair Market Value of the house. Because the cost for you to market your house is much heavier than an agent who is a regular client to printing bureaus and other promotional real estate services. Because it will consume your time; time you could be working and actually making money.  

So, next time you see a For Sale by Owner Listing or think about selling a home on your own, remember: though it might seem like a good idea; when one is selling your own house, one is not taking the easiest of the paths.

Real Estate Tip:

Selling a home on your own
doesn’t scare you? Then take a look at our Glossary Terms so you know even more about the real estate business and its specificities!

Are you a real estate agent? Well, don’t get mad at For Sale By Owners Listings; think of them as opportunities! Read our Finding Your Real Estate Niche: For Sale By Owner article and discover how to restore FSBO sellers’ faith in agent assisted Listing Agreements.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Latin: now for then. Descriptive of actions which are performed after a deadline has elapsed, but retroactively have the same effect as if they were carried out in a timely manner. For ...

The seller disclosure is a statement made in good faith regarding the condition of the home he/she is trying to sell. There is a seller disclosure form – called “Form 17” ...

Legal obligation to pay taxes associated with owning property or earning income. For example, a real estate owner must pay property taxes. ...

How many days, months, or years are required before a new building has the desired occupancy ratio. The occupancy rate influences the amount financial institutions are willing to lend. ...

The term market segmentation is mostly used in marketing for assembling prospective buyers in groups based on their needs and their response to a marketing action. One definition of market ...

The meaning of recordation defines the act of recording deeds and various property documents in a public registry office. Recordation proves ownership claims on a property or other assets. ...

Building more than six stories high serviced by elevators. ...

Everyone is aware of the perplexing complexities of a real estate transaction. Enter Opendoor, a company that aims to simplify this experience. If you're a house hunter, seller, real estate ...

You may have heard the term codicil in a conversation but might have yet to understand it entirely. What’s the codicil definition? “Codicil meaning” refers to a supplement ...

Popular Real Estate Questions