For Sale By Owner - FSBO

Definition of 'For Sale By Owner - FSBO'


A method of selling property without the use of an agent or broker. Generally, the reason that the seller does not use the services of an agent or broker is because they want to avoid paying a hefty commission for the transaction.

Investopedia explains 'For Sale By Owner - FSBO'


The most common for-sale-by-owner transaction occurs in the real estate market when a homeowner wishes to avoid paying a large commission when selling their property. By not using a real estate agent, the seller assumes all the responsibilities of completing the transaction.

Depending on the experience of the seller, avoiding the commission can be a wise financial decision. Those who have little knowledge about the transaction, however, can find it very stressful and may be better off using a qualified real estate agent.



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