In a For Sale By Owner situation (also known as a FSBO) properties are sold directly by the homeowner without the use of a real estate agent or broker. Generally speaking, a homeowner would elect not use the services of a real estate professional in order to avoid paying the agent’s commission fee – traditionally between 4 and 6 percent of the purchase price.
The National Association of Realtors reports that the majority of FSBO’s end up listing with a Realtor eventually. Part of the reason is because most buyers are represented by an agent. Moreover, most FSBO sellers price their homes too high, scaring off would-be buyers.
Homeowners who are interested in selling their own home can get help here. The guide addresses many of the normal concerns raised by homeowners including the proper pricing for a FSBO, repairs, legal advice, holding open houses, making a counteroffer, escrow, buyer inspections and appraisals, and closing the deal.