“For sale by owner” or FSBO is when a listing is being sold by the owner of the property, with no help from a listing agent or broker. This can be a choice for sellers because you avoid paying a real estate agent their commission. The seller assumes all
the responsibilities and legal risks of completing the sale.
Some Tasks of the Seller:
-Determine the asking price by researching neighboring properties that have similar features (number of bedrooms and bathrooms, basement, deck, acreage, square footage, etc.).
-Stage the home and make any repairs.
-Manage all the marketing and listing of the property.
-Schedule and host showings and appointments.
-Negotiate the price and terms of sale.
-Prepare legal documents (sales contract, residential property disclosure form, mineral and oil rights form, etc.). As well as track down any documents (property survey, permits, certificates of occupancy, etc.).
-Prepare the deed and ensure that it is signed, witnessed, and notarized.
-Close the deal.
-Though using a real estate agent or broker saves the sellers time, the commission can reduce the sellers’ prof
-When a seller takes care of the selling process themselves, they will be able to keep the whole thing, for the most part. Typically, the asking price with a real estate agent will include the commission in it, so the buyer ultimately pays the fee.
With the owner selling the house alone, they can ask for a lower price and get a better deal from a buyer.
-If the seller is not familiar with the selling process, they may get themselves in trouble. If they ask too high, then they will have fewer buyers, and it may take a longer time to sell. If they ask too low, then they will be leaving money on the table.
-There are legal risks with an FSBO transaction. This will occur if the legal documents are not drawn up properly, or if the home has issues that are not adequately disclosed.
FSBO is a good deal for homeowners, though the risks may be too high for some to complete the process.