What does “FSBO” mean in real estate?

In real estate, “FSBO” stands for "For Sale By Owner." This term is used to describe a situation where a property is being sold directly by the owner without the involvement of a licensed real estate agent. This means that the owner takes on the responsibility of marketing the property, negotiating with potential buyers, and handling the sale process themselves.

Choosing to sell a home as FSBO can be appealing to some owners because it allows them to avoid paying real estate commissions to agents, which can be a significant cost. However, it also requires that the owner have adequate knowledge of the market and the selling process to effectively navigate the complexities involved in a real estate transaction.

This understanding contrasts with the other options, which refer to different aspects of real estate transactions. For example, properties sold through agents involve professional representation, while different financing options pertain to how buyers finance their purchases, and auction properties are those sold in a competitive bidding format. Thus, the definition of FSBO focuses specifically on the direct sale by the owner.