What Does For Sale By Owner Mean?

For sale by owner (FSBO) is what the transaction is called when the seller makes the decision to sell their property without a real estate agent. This is often the route chosen by those who want to sell without having to pay a commission to the listing agent.

While moving forward as a FSBO, the seller has a good chance of yielding a higher return. What can’t be overlooked, though, is the amount of work that is required to make it happen.

Let’s take a closer look at what FSBO means.

What FSBO Means for Sellers

It is not uncommon for a seller to pay a real estate agent between 5% and 6% of the sale price of the property. Depending on the amount, this could mean saving quite a bit of money. Of course, the seller will also have to justify what they are taking on in order to save that money.

The seller will have to have an understanding of the process and what needs to be done to have a successful real estate transaction. They will have to be willing to put in the necessary work, such as:

• Setting a proper sale price

• Marketing the property

• Staging the property

• Being available for showings

• Accepting/rejecting offers

• Preparing contracts and other documents

The seller will also need to have a plan in place to tackle all of the legal requirements - and make sure they are done properly. Often, hiring a title company with FSBO experience is a huge help.

If these things can be handled, then there are a few benefits of choosing to move forward with FSBO.

What FSBO Means for Buyers

While the real estate transaction process is significantly different for a seller, what does it mean for the new buyer? What should a FSBO buyer know?

When you work directly with the seller, you cut out a lot of the back-and-forth communication that takes place between real estate agents. You will likely find that you get faster answers, more personal information about the property (and neighborhood) from the one who knows it best, and maybe even a little extra wiggle room when it comes to negotiating.

Buyers need to watch out for the asking price to confirm that it is comparable in the neighborhood as sometimes FSBO sellers tend to inflate the home value from a personal level. This is often true of homes that have been in the seller's possession for many years. The house may hold a lot of memories and nostalgia which they believe drives up the value. However, this is unrealistic.

Stay on top of disclosures and thoroughly check the property. Sellers know the ins and outs of their property and may not disclose certain issues they are aware of - or may not know they need to.

Buying a FSBO property doesn’t have to be much different than buying a piece of property with a realtor. Make sure that all steps are taken care of and that the documents are drawn up properly. Use your resources to confirm that everything is in place - and insist on having a title company involved.

FIZZBOW Can Help

At FIZZBOW, our title experts understand your desire to sell your home yourself - and we want to empower you to do so. But that means a lot of work falls onto your shoulders. If you aren’t sure where to begin or what needs to be done in the first place, you are going to want some experts on your side.

To learn more about FIZZBOW and what we have to offer you, contact us today at (571) 407-5479.