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For Sale By Owner

Chapter 10

FSBO Properties (For Sale By Owner)

Here we will talk about For-Sale-By-Owner or FSBO properties. For this type of property, the seller acts as an agent and handles the sales process directly with the buyer or the buyer’s agent. In an FSBO transaction, the seller does not pay any listing commission for his property.

About 10-15% of the national residential real estate market is composed of FSBO properties. Homeowners sell their properties by themselves in order to eliminate the sales commissions charged by most real estate agents. Selling a property without going through an agent saves the homeowner about 3-6% of the transaction price.

Although selling a home without an agent can save a lot of money, there are also some risks. But those risks pave the way for you. This is because while a lot of FSBO sellers are able to accurately assess the value of their property, there are still some who has no idea of their property’s true value. So if you are patient enough to sift through FSBO listings, you will be able to find an under-priced property.

FSBO home sellers are also unable to reach to a wide audience, and that is where you come in. They will be unable to include their home listing in the Multiple Listing System (MLS), which gives their home a worldwide exposure to potential buyers. Unless a homeowner uses an agent, a property will be less likely to reach all prospective homebuyers in the market. And as a result, the price of the property is unlikely to reach its maximum selling price.

Although it is not easy to measure the exact savings of purchasing for an FSBO, we recommend that you include these listings in your search in order to find a great deal on a home.  


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