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

Something that has been built and physically exists at a specified location, such as a building, garage, etc. Something consisting of related parts, such as the organization and terms of ...

In a broader sense, Full Disclosure means presenting all information (significant or not, classified or not) related to a certain matter. In Real Estate, the term “Full ...

When you hear someone in real estate saying there will be a boring test, they don't mean a dull exam is coming up. What is a soil boring test? Let's find out the meaning of a boring test! ...

The individual who receives an interest in a life estate after the original life tenant's interest expires. This normally occurs after the death of the life tenant. For example, Mrs. ...

Legal order for a person to present at a deposition or trial documents in his possession, such as related to a real estate transaction. ...

Unit of measure for the change in interest rates for loans. One basis point equates to 1 percent of 1 percent, that is, 0.01 percent. Therefore, one hundred basis points equals 1 percent. ...

Landlord's right to receive the value of the tenant's property to pay for unpaid rents or for damages to the leased premises. ...

Current cost to replace property with an identical property after allowing for the depreciated value of the property. ...

A partition or wall that provides no support to the structure in which it is located. For example, a nonbearing partition or wall does not support any floors above it. A partition which ...

Popular Real Estate Questions