FSBO is the acronym for ‘For Sale by Owner’. It is the process of selling any piece of real estate because by the owner single handedly without the aid of any real estate broker. The real estate property owner can make use of various other services like companies which excel online listing, marketing either by themselves or by any independent non-brokerage agencies. Whatever, the process the owners might follow to market their properties for sale, they do not engage brokers under any condition or pay them any commission.
The primary reason for not engaging any broker is to avoid paying their fees, which are quite high in the United States. It can go as high as 6% of the total deal. Sometimes if the property is huge, then the owner often takes the help of lawyers to aid in the transactions and paperwork throughout the process of selling the property. In case the buyer engages any broker, then the seller is not liable to pay any commission to the broker legally. It depends on the seller if they want to provide remuneration.
A survey by NAR (National Association of Realtors) in the US in 2009, only 11% of the property transactions were FSBO. It fell down from 20% in 1987. Some of the critics in NAR believe that the results were misleading and claim them to be almost as high as 22%. It was because the report had an observation that 10% of those transactions were done via flat-fee MLS.