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Information Page on "For Sale by Owner" (FSBO) Services.

"For Sale By Owner" (also  known as F.S.B.O.) is an available service where Smart City Realty Inc. charges a "Flat Fee" to list your home home on MLS and Realtor.ca.   

The fee includes For Sale Sign, CMA, professional photography, measuring of rooms and the recording of all necessary items.  Prices starts at $299.00. There is a surcharge for "out of zone"  services. ie. Outside the city of Ottawa there is a kilometre  distance fee added to the  FSBO package,

 

What Is “For Sale by Owner” (FSBO)?

 

Note: The term “Agent” in Ontario is not an official Real Estate designation. In Ontario, people who are qualified to engage in Real Estate Transactions have the official titles: “Real Estate Sales Representative”, or “Real Estate Broker”. Those who also are members of a local Real Estate Board may also refer to themselves as a “Realtor”.  

For sale by owner (FSBO) is a term that refers to a method of listing a property for sale. Sometimes also called a Mere Posting. When a house or property has an FSBO listing, it means the owner is most often selling the property without the help of a listing Sale Representative (Agent) or Broker. However, some Brokerages do offer seller assistance as part of a service fee, or an additional service. One reason sellers choose this option is to avoid paying the real estate agent a commission on the sale of the property. 

In FSBO transactions, the seller assumes all of the responsibilities and legal risks of completing the sale. In place of using a Brokerage to sell their property, a homeowner will use a Real Estate Lawyer who has a Trust account to handle deposits and down payments. The Lawyer of course will charge various fees for their services.

 

How for Sale by Owner (FSBO) Works

Though the details of each real estate transaction vary, here are some of the tasks the seller is responsible for in an FSBO transaction:

 

  • Determine the asking price by researching neighbourhood property values for homes with similar features, such as the number and dimensions of rooms, and the home's square footage. At Smart City Realty Inc. Brokerage we will supply a FSBO client with a Comparative Market Analysis (CMA) to help the seller determine an asking price for their property.
  • Stage the home for sale and make any necessary repairs. Generally, repairs should be done for either Full Service or FSBO home sales in order to obtain a higher selling price.
  • Manage the marketing, including advertising, online listings, brochures, flyers, and listing the home on the Multiple Listing Service (MLS) and Realtor.ca.
  • Schedule and host all of the showings, inspections and appointments. This can be very time consuming if there are many inquiries and the home is on the market for an extended period of time. The Seller must realize that they may need to take time off from work in order to be present for showings.
  • Negotiate the price and terms of the sale when an offer has been made and accepted.
  • Prepare the legal documents, such as the sales contract and residential property disclosure forms. Sellers may also need to track down other documents, including the property survey, permits, mortgage loan documents, utility bills, property tax bills, homeowner association covenants and agreements, and the property title.
  • Prepare the deed, and ensure it's signed, witnessed, and notarized.
  • Successfully close the sale. The closing will most often take place at real estate lawyer's office.

 

Who draws up the contract when a home is for sale by owner?

 In an FSBO transaction, purchase contracts can be drawn up in several ways. Some individuals use fillable PDF contracts they have found on the Internet through basic Google searches. Sometimes both the buyer and seller will find a local real estate lawyer to prepare and review these contracts. However, it is strongly recommended that the seller hires their own lawyer who is experienced in FSBO Sales to process the offer forms and ensure the sale is closed in a legal manner.  This type of lawyer will also have a separate trust account to receive deposits and down payments.

 

How do buyers' agents get paid in for sale by owner?

 The buyers' Sales Representatives are almost always paid out of the proceeds from the sale in a FSBO transaction. Real Estate Sales Representative (Agents) will usually include their commission of 1% to 2.5% in their initial purchase offer. Some times instead of a commission, the seller will offer a flat price to the buying Salespersons/Broker. For example, instead of paying a commission of 2%, the FSBO seller may offer a payment of $5000.00 to the buying Salesperson (Agent).  The FSBO Seller should indicate what form of commission or fee they are willing to pay the Buying Agent in their listing advertising. All Real Estate Sales Representatives and Brokers in Ontario are legally required to show homes that are for sale to their clients regardless of the amount of fee or commission that is offered by a seller.

 

Can I change from FSBO to Full Service with Smart City Realty Inc. Brokerage?

Yes!

If you purchase a FSBO plan from Smart City Realty Inc. Brokerage that amount will be deducted at the time of a successful closing if you chose to switch to a Full Service Listing Contract. The Amount for the FSBO Fee is not refunded as it then becomes a credit for the Seller sales commission on closing.

 

Ready to Sell your home using our FSBO Service?

 

"For Sale By Owner" (also  known as F.S.B.O.) is an available service where Smart City Realty Inc. charges a "Flat Fee" to list your home home on MLS and Realtor.ca.   

The fee includes For Sale Sign, CMA, professional photography, measuring of rooms and the recording of all necessary items.  Prices starts at $1999.00. 

For more information contact Smart City Realty Inc. Brokerage at 613-663-2545 or email at info@smartcityralty.ca