In real estate, what is known as a FSBO?
For Sale By Owner, or FSBO, is the process of selling real estate without the representation of a real estate broker or real estate agent.
Property owners may employ the services of marketing or online listing companies or market their own property but do not pay a commission and represent themselves with the help of a lawyer or Solicitor.
According to the National Association of Realtors (NAR), the median age for FSBO sellers is 54 years. Seventy-seven percent of FSBO sales were by married couples that have a median income of $104,100.
This is often because the homes were transacted with someone the seller knew. Of sellers who personally knew the buyer, 71% were satisfied with the process of selling their property.
Separate reports from the Canadian Real Estate Association state that between 20% and 25% of homes in Canada are not sold through brokers each year, as of 2004. More than half of the homes sold in Quebec are sold without an agent.
In the UK, the average commission rate is significantly lower than in Canada or the US. Properties for sale by owner are less common. By law, all sales of property have to be supervised and handled by an independent solicitor who acts as a mediator and holds the buyer's money until the purchase process is finished.
In Australia, the FSBO is still relatively niche market. Privately sold houses in Canberra are spending about 34 days on the market, the second least amount of time in the country.