By Owner in Chicago Video
For sale by owner
For Sale By Owner, or FSBO /ˈfɪzboʊ/, is the process of selling real estate without the representation of a real estate broker or real estate agent.Homeowners may employ the services of marketing or online listing companies or market their own property but do not pay a commission and represent themselves with the help of a lawyer or Solicitor (mostly in Commonwealth) throughout the sale.
Interaction with Real Estate Agents
One of the most popular reasons why homeowners choose to sell their house without the assistance of an agent is to avoid paying an agent’s commission. In the US the agent’s fee is, on average, 6% of the selling price of the property.
When a homeowner decides to sell their home without a real estate agent and a buyer who is not working with an agent wants to buy the home, the seller pays no commission because no real estate agents are involved.
If a buyer who is represented by an agent is interested in a FSBO home, that buyer’s agent may request the owner pay him or her a commission, or finder’s fee, for bringing the buyer. The seller may choose to either pay the fee or refuse. The seller is not legally obligated to pay any commission. If no agreement is in place with either the home buyer or the owner of the FSBO property, the buyer’s agent may not necessarily be compensated in the transaction, or may be compensated by the buyer.