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Sunday, March 18, 2007

For Sale By Owner

(abbreviated as FSBO; IPA pronunciation: ['fɪz,bou]) is a term that describes a piece of real property that has been offered for sale directly by its owner.
The owner has not solicited the help of a real estate broker, implying that no real estate commission is associated with the sale of the property. In recent years, the term has been used more broadly to describe the process of marketing, buying, and selling of real property without the representation of a real estate broker.
Many sellers who choose to sell via FSBO,
do so to avoid paying a commission to a broker, typically 6% of the selling price of the property in many parts of the US (Birger 2005). Commissions can range between 5% and 7% in different markets across the U.S. as well as in Canada.
According to a press release by the National Association of Realtors (NAR) regarding their most current annual survey of real estate consumers: 2005 National Association of Realtors® Profile of Home Buyers and Sellers (NAR 2006):
12% of 2006 US real estate transactions were FSBO (source: 2006 NAR).
13% of 2005 US real estate transactions took place via FSBO (down from 14% in 2004).
The record percentage of US real estate transactions (since tracking started in 1981) of 20% took place in 1987.
Some FSBOs, who are willing to pay a reduced fee, may contract with a broker to list their property on the Realtors' local Multiple Listing Service for a flat fee. This may be one of the fastest growing segments of the real estate industry.
For Sale by Owner within Australia accounts for less than 2% of all properties sold. (source: Zeroagents 2006) Commission rates within Australia are typically 2.5% of the selling price. The FSBO market within Australia has been restricted with major property portals only allowing property advertisements through real estate agents.

If you want more information regarding FSBO, visit AC Associates. If anyone has additional questions regarding selling their property, please feel free to get in touch with me. I would be more than happy to offer support and guide you through the process.

Recommended Reads:
How To Sell Your Home Fast In Good or Bad Markets:
Introduces you to the “secret sales weapon” and the exclusive
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program includes a detailed, 54 page guide manual. It’s jam packed with inside
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these easy solutions can generate.

Customer Comment:
"Your methods found me a buyer that paid me $2000 over the appraised value price.”

John Alexander
San Antonio, TX

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