FSBO - For Sale By Owner
The definition of mortgage term: For Sale By Owner
A FSBO (pronounced fizz boe) is a property that is "For Sale By Owner". In other words, the home owner of the property that is for sale has listed the property for sale solely without any representation. This is commonly done because the home owner does not want to pay out a real estate commission with a listing agent whose commission ranges between 2% to 3% of the purchase price. Note that even if a house is a FSBO, that as a buyer you may have representation and make a real estate purchase contract where the seller is responsible for your real estate agent commission. This is common because a transaction traditionally goes smoother when there is a licensed real estate professional involved.
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