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

Justifiable and fair amount for a real estate transaction based on the conditions and limitations involved in the exchange. ...

The consolidation of items that have been considered a part of property but are not actually annexed, secured, or joined to it. ...

If you’re a renter and you own a pet, you might be familiar with the term pet rent. There has been a lot of discussion about the meaning of pet rent and controversy as it isn’t ...

Ownership rights to real or other types of tangible or intangible property. Property rights include exclusive occupancy, possession, use, and the right of disposition. Individuals groups, ...

The net operating income definition is the total profit generated by a business or real estate development after the necessary operating expenses are taken out. In order to determine the ...

Interest based on a 360-day year instead of a 365-day year. The former is referred to as simple interest and the latter is termed exact interest. The difference between the two types of ...

Mortgage clause causing the mortgagor to pledge additional properties, mortgaged or not, as collateral to the present mortgage. Failure to pay any of the other mortgages causes a ...

An accounting methodology for separately depreciating individual parts or elements of a building or improvement qualifying as business use or a depreciable asset under the IRS tax code. ...

An accessory building is an outdoor structure used by the occupants of the main building or house. They have different functions and can be detached or attached to the main building on the ...

Popular Real Estate Questions