| Sellers aren't the only ones who can save money by doing a "For Sale by Owner" (FSBO, pronounced "fizzbo") transaction. You can save, too.
The trick is to visit FSBO properties on your own--without the help of a real estate agent. It's easy to do--just go to open houses or call the owners to schedule appointments.
If you decide to make an offer--and no agent has shown you the property--you can use a discount broker to help you with the paperwork. These brokers will usually rebate most of the buyer's agent's commission back to you as a reward for finding and visiting the property on your own. We recommend our sister company, SixHomes.com, which rebates all but 1% of the commission back to the buyer.
You can save even more if you prepare your own offer. You can purchase downloadable legal forms for $19.95 at Nupplegal.com.
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In a traditional real estate transaction, the seller's agent normally splits the commission with the buyer's agent. In this example, the buyers pay $600,000 and the sellers end up with $564,000.
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While FSBO sellers don't use sellers' agents, they often offer generous commissions to buyers' agents who bring in successful offers. Here, the buyers pay $600,000 and the sellers net $582,000.
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If the buyers find the FSBO home on their own, they can use a discount broker to do their paperwork. Here, the buyers end up paying $588,000 and the sellers net $582,000.
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Sellers often offer discounts to buyers who spare them the expense of paying a commission to a buyer's agent. Here, the buyers pay $582,000 and the sellers get $582,000. The buyers have the option of hiring a lawyer on an hourly basis if they want help with the paperwork.
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