FISBOs - About For Sale By Owner (FSBO)

For Sale By Owner

About For-Sale-By-Owners (FSBOs)

      A for-sale-by-owner property or FSBO (pronounced “fisbo”) is a property the owners are trying to sell without the assistance of a licensed real estate agent. This means that the property is not listed with a real estate agent or broker. Therefore the FSBO will not be available for viewing on the local MLS board by competing real estate investors and other buyers.

      This common do-it-yourself situation often results in less exposure than using a listing agent who has many tools and marketing strategies to help get the offering known. FSBOs are likely to fly under the radar since the owner often does not properly make known their need or desire to sell. Limited resources sometimes create a problem here as well.

      There are many reasons why owners would choose to sell without the help of a licensed real estate agent. In some cases the owners of FSBOs may feel they cannot afford professional help or they may have had a bad experience with an agent or broker in the past. Another common reason FSBOs are done is the owner may be trying to avoid paying an agent’s sales commission that would be due after the sale has transpired. Most real estate agents would point out that the commission is being paid by the seller and not by the buyer. This is somewhat of a misnomer as most owners listing property will “bump up” their asking price enough to cover the agent’s percentage. If the owners did sell the property without the assistance of a licensed agent they would not have the extra 6-7% commission (the national average) and could have a lower opening asking price. When all is said and done, it is the buyer who ends up paying for the agent’s services because they ultimately pay more for the property.

For Sale By Owner Guide

FSBO Real Estate Guide