CHAPTER 3 Pitfalls of FSBOs
You’ve sold a few automobiles in your day without trading in to a dealer, and you sell antiques on eBay. You’ve done well by both and consider yourself an astute horse trader and businessperson. So, now the time has come to sell your home, and you find yourself considering the options of selling it For Sale By Owner (FSBO) to save the commission fee. True, some people can sell their property outside the confines of a contractual agreement with a Realtor®, but the harsh reality is that most can’t, and don’t, and will spend significant time and effort spinning their wheels while qualified buyers come and go, without giving their property any serious thought, or, worse yet, never even knowing it was available. FSBO is the process of an owner selling a piece of real estate without using a real estate broker or real estate agent. While in an FSBO transaction, a seller may employ the services of marketing or online listing companies or market their own property, there’s no commission paid on the sale. This is the perceived value of an FSBO. However, sellers often need the services of attorneys to traverse the documents and intricacies of a real estate sale, and that cuts into the financial benefit. Although still out of the mainstream in real estate transactions, FSBO transactions seem to be increasing. Zillow reports a doubling of FSBO listings between 2012 and 2014 (up to 4%), ForSaleByOwner.com seeing 24% growth in 2013, and StreetEasy reporting NYC FSBO listings increasing by nearly 30% in that same period. According to a 2016 report by the National Association of Realtors® (NAR) regarding home buyer and seller
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