What is FSBO properties
FSBO stands for “For Sale by Owner”. FSBO is a term used in the real estate market which represents the process of selling a property without the representation of a real estate broker.
With this option, FSBO sellers can anticipate saving more money by performing the responsibilities of selling their property on their own, naming their own terms, and thus saving up on the cost of commission in the process.
Based on statistics gathered by the National Association of Realtors, FSBO’s accounted for around 8% of home sales. Although it is not a huge percentage, it definitely reveals that some home sellers don’t rely on representation to sell their homes.
Moreover, it goes to show that it is possible to sell your property on your own without relying on a real estate agent or broker.
Advantages of FSBO
You can avoid real estate commission
This is probably the major advantage of FSBO. We know for a fact that realtor commissions can amount to large sums of money and it’s no small thing. Since such commissions can significantly cut into your profit, FSBO could be the most viable option if you do not have enough equity in your property.
You have the option to rely on various resources to sell your property
A seller that is representing himself may rely on yard signs to spread out the word about the property for sale. The use of technology cannot likewise be ignored.
There are websites which can serve as great resources for advertising your property wherein you can upload images of your house and detailed information.
You can also find state-specific real estate purchase agreements from various websites like U.S. Legal Forms, Inc. Furthermore, you have an option to approach a local real estate attorney who can facilitate the process, address your questions and work on the legalities. Alternatively, you may also consult a local title company.
Where to find FSBO Properties
Based on 2017 survey by the National Association of Realtors, 51% of property buyers found their homes on the internet while 30% found their homes with the help of a realtor and around 7-8% found their eventual home through an open house or yard sign.
This implies that if you want to find an FSBO property, it is not enough to just rely on the internet; you also need to find the ideal real estate websites.
As mentioned, some of the areas you can explore if you’re looking for FSBO properties are yard sale signs, local newspapers, local real estate ads and MLS websites.
You may also consider asking around a particular area if there are any FSBO properties and then approach the seller directly. Other options to consider if you don’t prefer a lot of driving around and legwork are websites such as Zillow, Realtor.com, Redfin and Trulia.