For Sale By Owner

What Is For Sale By Owner (FSBO)?

For sale by owner or FSBO is a term that refers to a specific method of selling a property. In an FSBO listing, the owner sells the property without the use of an agent or a broker. Sellers typically choose to sell their home on their own to avoid paying the real estate agent the commission for the transaction.

For Sale By Owner Process

Although each property and type of real estate transaction can have varying steps involved, below are a few of the most common responsibilities and tasks for the seller in an FSBO transaction.

The asking price must be determined and researched using property values in the neighborhood for homes that have similar features, such the number of bathrooms and square footage.
Marketing the home would include advertising, listings online, brochures, and fliers that need to be created and distributed.

The seller must schedule all of the showings or appointments.
Once an offer has been made and accepted, the seller must negotiate the price with the buyer and write up the conditions of the sale that was agreed upon.

The seller must prepare all of the legal documents, including the bill of sale showing the details of the transaction.
Once the seller and buyer sign the contracts, the closing of the sale can be completed and the seller signs over the deed of the home to the buyer.

There are services available that can help sellers through the FSBO process. For example, a Multiple Listing Service (MLS)–which is a service connecting brokers and sellers to show their listings for sale–can help an individual determine a sale price. The MLS also has information on marketing a home as well as how to deal with the legal paperwork and contracts for a flat fee.