Abridged as FSBO, For Sale By Owner is a real estate terminology describing a particular situation wherein a property is being on sale by the owner himself or herself, without any aid from an estate broker, indicating the absence of the real estate commission on the sale.  Recently, the term is broadly used to describe the general process of marketing, selling and buying real properties without any real estate broker. 

A lot of property sellers opted to sell their properties by FSBO to avoid paying commissions to the brokers.  Commissions usually cost about six percent of the total selling price in most states in America.  However, commissions may also range between five to seven percent in various markets across Canada and the United States.  According to the annual survey of estate property consumers, 12% of real property transactions made in the year 2006 in America were FSBO, 13% in 2005 and 14% in 2004.  It was only in 1987 that the record breaking of 20% FSBO transactions took place in the United States.

For FSBO’s who are eager to pay a reduced price on a realtor may contact one to have their property listed on the local Multiple Listing Service.  This set-up is one of the growing segments in the real estate industry.  The Canadian Real Estate Association claims that a range between 75-80% of houses in Canada were sold by brokers, while FSBO appears to be only 20-25% of the overall percentage.  Meanwhile in Australia, FSBO accounts only lesser than 2% of the total properties sold.  Commission rates in Australia are usually 2.5% of the property price.  Thus, FSBO in Australia is restricted, giving room only to property advertisements via property estate agents.

FSBO has already been around for quite some time now.  But way back years and years ago, it had been a case of sticking homemade signs and placing ads in the pages of the local paper.  Real estate agents provided the link and access to diverse buyers and eventually made FSBO a hit-and-miss case with lots of FSBO homes unsold for a period of time, failing to earn top dollars.  The presence of Internet has somehow boost the playing field.  At present, it is easier to send your home on one of the listing sites available online wherein thousands of viewers and readers come upon it everyday.  The possibility of selling your house or any other real properties is bigger than it was before.  And so, FSBO is gaining popularity again these days.

But it is not as easy as it sounds.  It is helpful to acquaint yourself with the different stages and all legalities that come with the idea.  It is best to be familiar with the whole process before you start.  Know the essential figures and values necessary to market your sales, as well as the lowest figure you are willing to take.

When it comes to FSBO, important factor has to be considered such as security.  Security is a very significant element to be given much thought and considerations.  Basically, you are drawing total strangers to come and wander in your private space.  By contacting a realtor, the move provides a sense of protection since realtors do some screening on potential buyers.  But if you are determine to do the For Sale By Owner approach, you may very well do so but be sure to safeguard your property and yourself.  Allow viewings only by appointments.  And also, screen thoroughly your potential buyers prior to setting an appointment with them.  Contact information is highly essential at this point.  Get possible buyers’ contact details and reasons why they are interested with your property.  A genuine inquirer answers with no hint of hesitations.  Take this as a good sign, but still, do not put your guards down.  Another important thing to keep in mind is to securely lock your valuables out of sight.

If you are still a novice to real estate, it helps to ask assistance from an experienced realtor to guide you on the process.  But if you think you can manage well on your own, then FSBO may just be your thing.