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What does FSBO mean?

FSBO is a real estate term that stands for “for sale by owner” and denotes the process of selling real estate without real estate broker representation. By not using a real estate agent, the FSBO seller hopes to save more money by assuming the responsibilities of selling their home and saving on the cost of commission.

In the U.S. today, only 8% of homes were listed as FSBO. A possible cause for this is the rise of discount brokerages and platforms like Clever that are bringing down the cost of real estate commission. The sellers that ultimately are deciding to go the FSBO route tend to be in the older age demographics or have a pre-existing relationship with the incoming buyer.

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