FAQs – Part 7 (FSBOs)
You probably have heard the term, but if not you will during your journey to buy your first home. FSBO refers to For Sale by Owner – a seller who is brokering his/her/their house without the assistance of a licensed real estate agent. Because these sellers are selling without representation, they are now more commonly called Unrepresented Sellers, at least in the real estate community.
Sellers choose to sell their homes on their own for a number of reasons, but most commonly it is because they would like to save the commission that they would pay to a licensed broker. Commissions are always negotiable, but it is not uncommon for a broker to list a property for between 4 and 7% (varying by area, region, state, brokerage, etc), with the fee being split in some way (based on agreement with the seller and broker) between the listing agent and the agent who brings in the buyer. Some FSBOs will pay a fee to an agent who brings in a qualified buyer with an acceptable offer, but others do not. More on FSBOs later…
