Sell My House Working with Real Estate Agents and FSBO

Question 1

What does FSBO stand for in real estate?

Accepted Answer

For Sale By Owner

Answer

FSBO (For Sale By Owner) refers to a home sale where the seller handles the transaction without hiring a listing agent, typically to avoid paying a seller's agent commission.

Question 2

What is the primary reason sellers choose FSBO over using a listing agent?

Accepted Answer

To avoid paying the listing agent's commission, typically 2.5–3% of the sale price

Answer

Saving on the listing agent commission is the main motivation for FSBO, though sellers still often pay the buyer's agent commission and handle all marketing, negotiations, and paperwork themselves.

Question 3

What is a listing agreement and what does it obligate the seller to do?

Accepted Answer

A contract between the seller and a real estate agent authorizing the agent to market and sell the property, typically for a set commission and timeframe

Answer

A listing agreement grants the agent the right to market the home, defines the commission structure, and specifies the listing period, typically 3–6 months.

Question 4

What is a buyer's agent and does the seller typically pay their commission?

Accepted Answer

An agent who represents the buyer; the seller traditionally pays the buyer's agent commission from sale proceeds, though this is evolving

Answer

Traditionally, sellers paid both agent commissions (listing + buyer's), but post-NAR settlement (2024), buyers may negotiate directly with their agents, changing how commissions are structured.

Question 5

What is 'dual agency' in real estate and what risk does it pose to sellers?

Accepted Answer

When one agent represents both buyer and seller in the same transaction, creating a potential conflict of interest

Answer

Dual agency means the agent cannot fully advocate for either party since they represent both, which may result in the seller accepting a lower price or fewer favorable terms.

Sell My House Practice Test

Sell My House Practice Test

Sell My House Working with Real Estate Agents and FSBO