For sale by owner definition.
A for sale by owner transaction refers to the sale of residential real estate without the use of any licensed real estate Agents. Also known as fsbo for short (pronounced fisbo). A home seller takes on many of the responsibilities involved in listing and selling a property to avoid paying a listing commission. Such responsibilities include, but are not limited to, placing advertisements, photographing the property, scheduling showing appointments, holding an open house, placing a for sale sign, and online / direct mail marketing. Since a seller typically doesn't hold an active real estate license, there is an increased risk in any fsbo transaction, especially in situations where the home buyer is represented by a fully licensed Realtor. More recently, fsbos include for sale with owner transactions, where the homeowner selects limited services a la carte in exchange for paying a drastically reduced commission as compared with a more traditional, full service broker.