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

The largest financial intermediaries directly involved in the financing of real estate. Commercial banks act as lenders for a multitude of loans. While they occasionally provide financing ...

Device that places the ownership of real property with one or more trustees for security until the loan is paid by the debtor. It is used in place of a conventional mortgage contract in ...

Abusive tax shelters are a consequence that resulted from Congress allowing losses of revenue to be used for tax benefits. They are a side-effect of tax deductions that companies are ...

The rent a property commands in a free and open market setting. ...

Nonprofit entity disseminating advice and data on the best utilization of land. The address is 1090 Vermont Avenue, NW, Washington, DC 20005, telephone (202)289-3307. ...

An agreement by which the owner of property (the lender) and a borrower agree to let the borrower use the property for a particular time period and in return the borrower will pay the ...

Structure of prefabricated units. ...

What remains after something is removed, such as substances left after a pollution treatment facility is removed. ...

Named after Sir Robert Torrens, a British administrator in Australia. The torrens system is a state-sponsored system of land title registration, not applicable in states, such as California. ...

Popular Real Estate Questions