| 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.
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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