Buying a “for sale by owner” (FSBO) home refers to purchasing a property directly from the owner, without using a real estate agent. It can be a great way to save money, but it also comes with some unique challenges.
There are several advantages to buying a FSBO home. First, you can save money on closing costs. FSBO sellers typically don’t have to pay a real estate agent’s commission, which can range from 5% to 6% of the home’s sale price. Second, you can have more control over the negotiation process. When you work with a real estate agent, they will typically represent the seller’s interests. However, when you buy a FSBO home, you can negotiate directly with the owner, which gives you more flexibility to get the price you want.