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

property having an easement right through another adjoining property. The property through which the easement passes is considered to have the servient tenement. ...

Cubic unit of measure for a board one-foot long, one-foot wide and one inch thick, or 144 cubic inches. These measurements are not actual, since they are stated prior to finishing and ...

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 ...

Potential customer or client in which there is a realistic chance of making the sale for the product or service. An example is a prospective purchaser of real estate that the real estate ...

Under law, a warranty in effect even if not expressly stated. It provides that real property sold is warranted to be appropriate for sale and is in proper condition even if not stated, ...

Written document by an official granting agency and signed by an empowered official certifying that some specific act including the fulfillment of certain requirements has occurred on a ...

Judicially determined minimum selling price for auctioned property. For example, a judge rules that a foreclosed home may be sold for less than $200,000, ...

Rental due on the leased property is formulated as a percentage of sales volume. There is typically a minimum rental specified. An example is a retail store that pays rental based on its ...

Aerial photos are photographs taken by cameras mounted in aircraft or satellites. Aerial photos are more commonly used in the industrial Real Estate Market to get a better feel of a ...

Popular Real Estate Questions