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What is a FSBO?

On Behalf of | Dec 17, 2019 | Real Estate Law |

Are you interested in selling your home in Oregon but do not want to pay a commission to a listing agent? If so, you may be considering a FSBO. Pronounced “fizzbo,” this is an acronym that stands for “for sale by owner.” 

Selling your own property without a listing agent could yield a greater return. According to SFGate, the commission you would owe an agent could cost you between 3% and 6% of the final selling price. However, a FSBO also poses certain challenges, especially if you do not have much experience selling property. 

One of the biggest challenges you could face with a FSBO is compliance with real estate law. A mistake when drawing up a contract could allow the buyer to back out of it, costing you money and time in the process. It is also important to understand and comply with applicable state laws regarding property defect disclosure. Otherwise, the seller could accuse you of fraud and file a lawsuit against you. 

It is common for FSBO sellers to fall short of an adequate marketing strategy. This makes it more difficult for you to move the property because buyers are not aware that it is for sale. Due to inexperience, FSBO sellers also tend to make mistakes when pricing their homes. It is important to gather reliable information about other homes for sale in the vicinity and perform an objective comparison to determine a fair asking price. Another area where FSBO sellers tend to fall short is staging the home, i.e., presenting it in a way that is appealing to potential buyers. 

The information in this article is not intended as legal advice but provided for educational purposes only.