For Sale by Owner, or FSBO
For Sale by Owner, also known by the acronym FSBO, refers to an owner who is trying to sell a home without using at least one of the two real estate agents normally involved (the listing agent, and the buyer’s agent). Traditionally, a For Sale by Owner seller would skip the listing agent. The owner would do all the work of marketing the home. However, the seller still offered the full 3% commission to any buyer’s agent – because that’s what the MLS requires.
Today, that just doesn’t make any sense, not when there are alternatives to the MLS. In particular, Zillow attracts millions of viewers each month. It routinely advertises itself as a great place to find a home. So sellers can now easily forego both agents and sell For Sale By Owner. They sell it themselves on Zillow, so they don’t need a listing agent. And the buyer’s agent? Well, believe it or not, the buyer’s agent is paid by – GASP! – the buyer. The owner saves the full commission of two real estate agents – a whopping 6%! And needless to say, I can – and routinely do – help sellers sell FSBO.