For Sale By Owner (FSBO)                                                              << Back

FSBO is a commonly used acronym that stands for For Sale By Owner and most often refers to real estate for sale. As opposed to listing a home with a real estate agent, FSBO is a real estate offering handled by the seller which does not involve a real estate agent. Agents often refer to owner-sold homes as "fizbos". People may elect to list their house FSBO for a variety of reasons.

Possibly the number one reason homeowners choose FSBO is to save money in real estate fees. Though selling a home FSBO means additional work for the homeowner, with sales commissions averaging 7% of the sale price of the home, selling a home privately can save the owner thousands of dollars. Other benefits to listing a home FSBO include more flexibility and control in showing the house and contract negotiations.

When an individual decides to list his or her house FSBO, there are a number of factors to consider. Understanding fair market value for pricing the home is absolutely necessary for a homeowner to successfully sell a property. Many people are unable to set aside their personal feelings about their home in order to maintain a clear business perspective. In other words, just because you personally love your decorating touches and believe they have added value to your home doesn't mean the average homebuyer will agree.

Additionally, when you sell your house yourself you become the only point of contact for interested buyers. You must hold your own open houses, and showings by appointment, and negotiate the purchase contract on your own. Many people wisely choose to hire a real estate attorney to handle the details of the purchase agreement, but anyone with basic real estate knowledge can close the sale of a home on their own.

Before listing your home FSBO, thoroughly research real estate information in your area, including property values, title agencies, and typical contract terms. You should also be prepared to offer a finders fee to real estate agents that might bring you a qualified buyer to purchase your home.

In Summary, the following are the advantages on selling on your own include:

• Less stress - One of the major advantages of selling a home for sale by owner is that you can set your schedule. You know when potential buyers will be coming to check out the place, and can allot time to prepare accordingly. There is no need to leave your own home every time an agent wants to show it. You no longer have to make sure the house looks in "show condition" at all times. Even better, when a prospective buyer makes an offer, there is no back-and-forth between agents. An agreement can usually be reached quickly and easily between the fsbo seller and the buyer.

• You're the ideal agent - Who knows your home better then you? When showcasing your house to a prospective buyer, you know what the highlights are, whether it’s the perfectly finished basement or the beautiful landscaping in the backyard. You also know what needs to be downplayed much more than an agent who is not so familiar with the place. Remember, a well maintained, fairly priced home will virtually sell itself. It’s your job to provide the additional information. 

• You're in charge - Selling FSBO means there is no agent telling you what to do. You’re in control of all major decisions, including where and how to advertise, scheduling showings at your convenience, and even taking your home off the market for a time if necessary. Most importantly, you can deal with potential buyers yourself. There is none of the frustration that can result when a seller feels that the agent is "not doing enough." And you aren’t obligated to a three, six, or 12-month contract—you make the rules!

• You do not have to pay realtor commission - There’s no way around it: whenever you work with an agent they get a cut of your profits. Calculate 5-6% of what you think your property is worth. Now, is it worth paying this much to have someone else show your property? If the answer is NO, then selling for sale by owner is the way to go

• Save time - If you decide to list your home with a real estate agent, chances are you will inflate your asking price to cover the cost of the commission. Within a few months, you’ll realize that no one is going to pay that much for your home. At this point, you’ll either have to reduce your asking price or accept an offer equal to the original amount you would have asked if selling it fsbo—and you would still have to pay the agent’s commission! Do it right from the beginning, and avoid taking the loss.