The Marketing Strategy of FSBO

FSBO belongs to the world of real estate wherein the deal is direct between the seller and the buyer without the presence of any middleman or broker. By doing away with the broker the parties avoid paying huge commissions. The broker is generally given 6% of the selling price. It differs from place to place – the range being 5% to 7%.

In the case of the buyer being represented by a broker in the instance of a FSBO unit the commission is paid by the buyer.

In the present foreclosure dominated mood of the market more and more property owners are taking the help of online marketing companies to showpiece their units. The websites of FSBO have become extremely popular and are vital for the selling of houses.

The commercial FSBO websites make available to the public MLS – this being the primary source of information for the realtors. The flat-fee MLS permits the seller to cancel completely the fees for the broker.

Thus selling by owner saves money from commissions. Selling through agents takes time whereas FSBO process leads to quicker deals and time saved is money gained. The buyer becomes cautious when the agent quotes a price because there is doubt that the price has been inflated to cover the cost of the brokerage.

This leads to haggling and ultimately the house might not sell because of the high price tag. The FSBO has an edge over other houses again because the price is less and also because the buyer feels happy to deal directly with the owner. One is in control of the sales and there is less stress and tension. The buyer will prefer to make the deal directly with someone who knows the house best.