FSBO

FSBO Definition

FSBO (abbreviation of “for sale by owner”) is a type of real estate sale where the homeowner assumes the fiduciary responsibility as the selling agent when marketing and selling their own property.

Explanation

Some home sellers prefer to avoid working with a real estate agent for various reasons, among which there are unwillingness to pay them a commission and lack of trust.

FSBO sales allow sellers to avoid real estate listing agent commissions. However, if the buyer uses a buyer’s real estate agent, normally, the seller is still responsible for paying them a commission.

Still, FSBO sales eliminate the standard agent commission on the seller’s side, typically 2.5-3% of the sales price paid at the closing of the transaction.

Some FSBO sellers contract with licensed real estate professionals to assist in one or more duties involved in a real estate sales transaction.

A FSBO seller is responsible for listing the property. This can be done without any charges or fees by using a number of print and online resources.

In some geographic regions, a seller can also contract with a real estate brokerage that has access to the Multiple Listing Service (MLS).

The MLS is a state Realtor-controlled, fee-service that places the seller’s listing on databases used by licensed real estate agents.

Some real estate offices contract with for-sale-by-owner listers to market, or assist with marketing, the FSBO.

Typically, the homeowner can select from a menu of professional services with a set fee for each one provided by the licensed real estate agent.

FSBO listers typically use real estate contracts and forms developed by the state branch of the National Association of Realtors (NAR) or use documents approved by the state legislature.