For Sale By Owner (FSBO)
In a for sale by owner, or FSBO, transaction, the owner of the property lists it for himself. He will act without an agent. Most people do this so that they do not have to pay the real estate agent a fee when the sale finally goes through. There are certain advantages and disadvantages to this approach. Many FSBO situations occur when the value of the house is so low that the seller does not want to lose any more of his value. In these transactions, the seller has to be very careful to list the home at the right price. Too often, for sale by owner listings end up overshooting or undercutting the market. This can scare away buyers or lead to a situation where the seller gets a tremendously bad deal. This type of deal can be easier to pull off in some instances, however.