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For Sale By Owner

The increasing use of computers and technology and the "do-it-yourself" mindset of today's home sellers have contributed to the growth of homeowners who decide to sell their homes themselves as For Sale By Owners, or FSBOs. Estimates of FSBOs range from 15-30% and it is expected that their will be continued growth in the future. Web sites such as www.Owners.com make it easy for home sellers to get the word out to a large audience of potential home buyers.

There has also been growth in entrepreneurial real estate services to assist FSBO sellers.  Many resources are developing nationally to accommodate those sellers who chose to market their property on their own.

Discount Brokers attract FSBOs

Discount brokers are the middle ground between a full-service listing agreement with a traditional real estate agency and a strictly FSBO effort. These entrepreneurs have taken the full package of services traditionally available to home sellers and "unbundled" the services into flat fee, reduced commissions and/or a menu of options for home sellers.  Sellers are usually given the option of placing their home into the MLS for ad additional fee or letting the discount listing firm sell it on their own at no additional fee.

Flat fees or reduced commissions are common and some discount brokers keep the door open to a full-listing service through a menu of options. A discount or flat fee broker may have separate fees for a yard sign, advertising, Open Houses, mortgage financing assistance for buyers, MLS placement, negotiation assistance, and closing paperwork. Massachusetts has attracted some discount brokers as well as individual agents who are now marketing unbundled services. The Boston Area MLS now accommodates "Entry Only" listings which amount to a FSBO in the MLS

Traditional real estate agents may not be eager or willing to help buyers identify and purchase FSBO homes because they do not have the structure in place in their offices to handle such transactions. Buyer's agents, on the other hand, are eager to work with FSBO sellers and usually have a tracking or monitoring system in place to specifically identify FSBOs to increase their "inventory" of homes to show buyers.  If you want an agent to show you all of the available properties out there, you are best served by hiring a Buyer's Agent to show you more than the active MLS properties.