What is a FSBO?

The term “FSBO” stands for “For Sale By Owner,” and refers to a real estate sale transaction in which the seller does not have a real estate agent. If the buyer also does not have a real estate agent, the sale agreement is typically prepared by the attorney for either the seller or the buyer.

Though a FSBO seller will not pay real estate commissions on the sale, a buyer with a real estate agent may ask the seller to cover some of the commission for the buyer's agent. This is because, if the seller had a real estate agent, the entire commission would have been paid by the seller and split between the seller's agent and the buyer's agent. For this reason, it is potentially more expensive for a buyer with a real estate agent to purchase a home FSBO, and it may deter some buyers.

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