The Definition of FSBO

For Sale By Owner (abbreviated as FSBO and pronounced fzbo) is a real estate term which describes the situation in which a property is offered for sale directly by its owner and without that owner having solicited the help of a real estate broker, implying that no real estate commission is associated with the sale. 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.




Some real estate professionals in the United States use short word fizber (noun) to describe home owners who sell their homes and land by themselves and don't use a realtor. The word fizber was formed by means of agglutination from the word fizbo (pronunciation of FSBO) by adding affix -er to it.

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.[1] Commissions can range between 5% and 7% in different markets across the U.S. as well as in Canada

When homeowners decide to sell their home without a real estate agent, they enter the world of the FSBO sellers or fizbers. If a seller markets a home as a FSBO, and a buyer who is not working with an agent wants to buy this home, the seller pays no commission because no real-estate agents are involved. If a buyer who is represented by an agent is interested in a FSBO home, that buyer's agent may request that a fizber pays him or her a commission or finder's fee for bringing the buyer.

In many states, brokers have appropriate pre-printed forms in place for agents to pre-negotiate a "one time showing" with a negotiated commission rate. This ensures that agents can represent their clients' best interests and consider all available homes in the decision-making process.

In order to protect themselves, sellers typically arrange to have the necessary forms at hand or have them drawn up for them. Lawyers will normally draw up an agreement for a fixed fee often as part of legal representation for the purchaser. In parts of Canada (e.g. Ontario), office supply stores carry legal kits that can also be used.