What It Means To Go The “For Sale By Owner” (FSBO) Route

If you’ve been hearing real estate folks saying something that sounds like “Fizz-bo,” they’re actually referring to the acronym of an industry Jargon. FSBO is short for the term “for sale by owner.” It involves the process wherein the owner sells his or her property without representation of an agent. According to US statistics as per a release published by the National Association of Realtors (NAR), about 11% of real estate transactions in 2009 were FSBO; however, critics of the organization argue that the figure is actually closer to 22%.

The beauty in an FSBO transaction lies in the fact that there is no need to pay agent’s commission, which is typically six percent of the selling price. Of course, somebody aiming to go the FSBO route has plenty of research and many details to take care of before he or she can confidently take on the task of property selling. Everything has to be done correctly, from the valuation and marketing to staging and negotiating. Most probably, a lawyer will be hired to take care of the legal aspects, but everything else will be dealt with by the owner.

Real estate agents have gotten a bad rap over the years. Besides the fact that a six percent commission significantly dents the profit the owner gets from the sale, many property owners simply do not want the bother of dealing with an agent. Too many sellers have been burned in the past by agents who did not represent their clients well, opting to secure a sale as quickly as possible without much regard for the price and conditions indicated in the contract.

With regard to marketing and advertising, there are now many services specifically catering to the FSBO crowd. In any case, for wider exposure, owners may avail of services provided by real estate companies, which can help them market and advertise their property. For instance, for a minimal fee, realtors may list the property on the owner’s local Multiple Listing Service or use their account with online property ad or listing sites to advertise it.

Certainly, there are many challenges involved in opting to sell one’s own home. Property owners must be willing to find out a great deal of information regarding matters such as state laws and regulations as well as financing options. It is also said that buyers are more inclined to transact through an agent, and when they’re willing to do business with the owners themselves, they tend to deliberately lower their offer, with the rationale that the owners are saving a lot anyway not having to pay agent’s commission.

These are just some of the things to consider when choosing to go for a FSBO transaction. Forewarned is forearmed, they say. With the above insight, an owner can successfully sell his or her property without going through the expected aggravation.