For Sale By Owner

For Sale By Owner



For Sale by Owner (also used as FSBO) is a word used by Real Estate professionals and in general Real Estate to define when a property is put up for sale by the properties owner, it further insinuates that the seller is not using a real estate broker, nor paying any commission to an agent upon sale. The term For Sale by Owner has begun taking on a new meaning to widely encompass the whole process from buying, selling, marketing, negotiating, inspecting, etc, without the help or guidance of a licensed real estate agent.

Often when sellers decide to sell their real estate as a FSBO their main reason is to avoid paying the 6-8% real estate commission to a broker. In many cities this price may range from 5% to 8% depending on the services provided by the agent, and if the property is in the USA or even Canada.

One of the top companies in this industry, www.wizah.com, in December 2007 reported a 15% increase of properties going FSBO from the prior year. The amount of sellers choosing to go For Sale By Owner with the assistance of an online, flat fee, or discount Realty Company to market their real estate.

The National Association of Realtors issued a press release after they completed a survey of real estate consumers with the findings that in 2006 12% of all real estate transactions were by for sale by owners, in 2005 the number was 13%, and in 2004 it was 14%.

There are For Sale By Owner (FSBO) real estate sellers that show willingness to pay a realtor. Many times it is a reduced fee, or often they may work with a broker to put the property on the multiple listing service for a fixed rate, instead of commissions. This niche of the industry is called “Flat Fee MLS” and is one of the fastest growing sectors of real estate.

For Sale by Owner's also exist in Canada, and according to the Canadian Real Estate Association, 75% to 80% of property sales were conducted with the help of a real estate broker. So it can be assumed that 20% to 25% of all home sales are conducted as For Sale by Owner transactions.

Buy Vs. Rent Argument

For more information about For Sale By Owner Real Estate, please contact Adam Kruse, 314-210-5115 or adam@wizah.com