What Is A FSBO Seller?

As you know, the term "FSBO" stands for the phrase "for sale by owner." Because we are a real estate site, you probably will automatically assume that the term FSBO only applies to the sale of real estate. In fact, it refers to everything from used cars to garage sales and so on. Of course, we will stick to real estate.

The basic idea behind being a FSBO seller is to save money. Avoiding the payment of real estate agent commissions saves the money. In the typical real estate transaction, a real estate agent will get a six percent commission. If you hire a real estate agent to sell your home for $500,000, the commission will be a whopping $30,000. That represents a lot of equity and mortgage payments. From a financial sense, being a FSBO seller absolutely makes sense.

While the financial side of the equation makes obvious sense, some people shy away from being FSBO sellers. The primary reason is the feel like they do not know the business well enough. This may sound reasonable at first glance, but it really is not when you look at the finer points of the process. First, most of the documentation you will need to handle the sales process comes in pre-printed forms. In fact, there are actual "FSBO kits" for sellers. Second, the process really is pretty simple. Clean up your house, put it on the market, show it to prospective buyers and negotiate a selling price.

Obviously, the selling process requires you to learn a few more details, but isn't it worth it? What if I told you that I would pay you $30,000 to learn how to sell a home? Would you do it? YES! That is exactly what you are doing when you become a FSBO seller.