| FSBO is the abbreviation of the phrase "for sale | | | | But perhaps the biggest disadvantage of using a |
| by owner" which is used to describe property | | | | Realtor -- everything else being equal -- is that the |
| sales that take place without the seller paying a | | | | $30,000 commission expense makes homes listed |
| commission to a real estate agent. | | | | with Realtors more expensive to buy. |
| Much has been written about doing a sale by | | | | In the business world the lower cost business |
| owner in order to save the commission which is | | | | always beats out the higher cost business -- |
| normally paid in the amount of 6% of the sales | | | | everything else being equal. This is because the |
| price of the property. I've written many articles | | | | lower cost business can lower prices and keep |
| about FSBO sales, have done my own FSBO | | | | the same profit margins. |
| sales, and have also been a licensed Realtor. So I | | | | Likewise if you are doing a sale by owner you |
| have seen both sides of the argument. | | | | can lower your asking price and keep the same |
| My person opinion is that the decision to use a | | | | profit on your home. Instead of listing at $500,000 |
| Realtor instead of doing a sale by owner is a very | | | | to net $470,000 you can list at $470,000 to net |
| personal one that should be based on individual | | | | $470,000. |
| factors present in each different sale. | | | | Your lower listing price will attract more visitors to |
| Not every homeowner is prepared to sell a home | | | | your property website, and more calls from |
| on their own. Not all Realtors justify the 6% | | | | interested buyers. This is a huge advantage for |
| commission expense which is $30,000 on a | | | | FSBO home sellers. Saving the 6% commission |
| $500,000 home. | | | | can allow you to lower your asking price to be |
| I have discovered that the internet marketing | | | | more competitive. |
| techniques I use in my business can be used to | | | | A lower listing price is the ace in the hole that |
| sell a home, and I know most real estate agents | | | | helps the FSBO property beat out properties |
| do not use these techniques. This is a | | | | listed with a Realtor. |
| disadvantage of using a Realtor. | | | | |