If you’re in the homebuying process, the term “For Sale by Owner” is probably something you’ve seen already. What does it mean? Should you pursue a home that the seller is listing themselves? Read on to learn the true meaning of for sale by owner and how to navigate the process.
What does For Sale by Owner Mean?
For sale by owner, sometimes abbreviated as FSBO, refers to a method of home listing. When a house is “for sale by owner”, it means the owner is selling the property without using the help of a listing agent or a real estate broker. In an FSBO transaction, the seller takes on all the responsibilities and the risks of the sale.
How does a seller determine the price of an FSBO listing?
Usually, if a seller is listing their home as “for sale by owner”, they will research the property values of nearby comparable houses (or “comps”). But because the seller is not getting the advice of a professional real estate agent, they may either price their home on the low or high end of comparable price ranges. Listing their home this way may deter buyers, or attract more, depending on the situation.
What are the disadvantages of purchasing an FSBO property?
Because the seller is acting as an agent, and broker – purchasing an FSBO home can be a little more complex than if the seller listed their property in the traditional fashion. However, if you are working with an experienced agent and real estate lawyer, they can help you throughout the process.
Buying a “For Sale by Owner” home is just another reason why you need a reputable real estate attorney on your side. Before you make that offer, give us a call. We can help with the home buying process.