For Sale By Owner (FSBO - pronounced fisbo)
is a situation in which a property is offered for sale directly
by the owner without the use of a real estate broker. Because no
broker is being used, there is no real estate commission
associated with the sale of the property. The term can also be
used to describe the entire process of marketing, buying, and
selling real estate without using a real estate broker.
Many sellers who choose to
sell as FSBO do so to avoid paying a
commission to a broker, typically 6% of the selling price of the
property in many parts of the United States. Commissions usually
range between 5% and 7% in different markets across the United
In the United States, the percentage of home sales via FSBO is
usually around 12-15% annually.
In Canada, the percentage of "For Sale by Owner" real estate is
even higher at 20-25% annually.
Some FSBOs, who are willing to pay a reduced fee, may contract
with a broker to list their property in their local Multiple
Listing Service (MLS) for a flat fee. This may be one of the
fastest growing segments of the real estate industry. Read
Fee MLS for more info.
For Sale by Owner is also becoming increasingly more popular in
Europe, with many new companies in the UK and Ireland offering
the FSBO service.
not only saves the homeowners money, but the buyer typically
gets more home for less money because the homeowner has more
money to negotiate, thus saving the purchaser as well.