FSBO stands for For Sale By Owner. When a homeowner decides to sell their house on their own without the assistance of a real estate agent their house or listing is often called a FSBO. So if you see the acronym in an ad or on a sign it means the owner is selling the house and is not being represented by a real estate agent.
There are several advantages to owners selling a home themselves. The biggest advantage of course is that they will save on having to pay a real estate agent a sales commission. These commissions are usually several thousand dollars. Homeowners typically pay about a 7% commission to real estate agents for assisting them in selling their home.
Another advantage is that you are more in control of the sales process. You can show the home at your convenience and not be at the mercy of the real estate agent’s schedule. In addition, when a potential buyer makes an offer on the house there is no middleman. You as the owner negotiate directly with the buyer and it may make it easier to come to an agreement without having someone in between.
As the owner you will also know all of the details of the home and may be better able to convey these to prospective buyers than a real estate agent.
The disadvantages to trying to sell your own home is that you will not have the expertise of an experienced real estate professional or access to all of their advertising and marketing. You will have to do all the selling and marketing of your house on your own.
If you are considering selling your house yourself you will need to make sure you get a good understanding of what the fair market value for your home is by getting your house appraised and checking to see what other similar houses in your area are selling for. Some homeowners put an unrealistic price tag on their homes and do not have much success. On the other hand, beware of bargain hunters who may try to take advantage of unsuspecting homeowners who don’t know the true value of their home. You want to get a fair price for your home.
You will also need to come up with a good marketing plan for advertising your home for sale. Before putting your house up for sale, make sure all necessary repairs and maintenance are complete and that your house is clean and attractive. Many people are able to sell their homes by advertising in their local papers and puting up a FSBO sign in the yard, but be prepared that it may take more than that, depending on the state of the real estate market in your local area.