FSBO stands for For-Sale-By-Owner where the owner himself takes the entire process of property selling and buying without the services of the real estate agents. In this way as an owner of the property or as a buyer you get to save the money that one has to pay as commission to the real estate agent for the entire transaction. It does look very tempting initially although the task involved in the transaction is not very easy and may give up in the mid way.
The entire process of the transaction is actually very complex and requires a lot of knowledge and expertise in the field and if you are not up to the mark then you can easily lose the money in the entire deal. Apart from that the entire business of buying and selling requires a lot of time and one has be committed towards it to get a good profit which sometimes is very difficult if you are devoted to other activities as well.
As a seller the first disadvantage that you face is bearing all the expenses for the advertisement and marketing of the property. This is essential because you have to make your property known to the prospective buyer and in a way it should attract them towards your property.
Also you might quote your property over priced compared to other properties in the area and lose the deal. Moreover as an owner you get emotionally attached to your property and cannot speak the market language that the buyers want to hear. Sometimes lack of proper negotiation may lose the interest of buyers.
Also the legal and financial part is very important in the entire deal and for this the owner has be really sound in the field of legal and financial matters otherwise he might face a problem in the near future.
In the entire deal the owner definitely gets his freedom to control but then he has to be dependent on his instincts for making any decision. And this can sometimes have adverse affect on the entire deal.
On the other hand the buyers can also get tempted towards FSBO properties as they get a chance to save good money on the real estate agent commission but sometimes due to inadequate knowledge they might get into trouble like they might not know who the real owner of the property is and face problem later.
Also the disadvantage is the buyer might not get complete information about any fault with the property or technical issues which later on might be a big problem. Even sometimes the FSBO properties are overpriced which the buyer might not get to notice due to lack of adequate knowledge of the area.
Therefore it is always advisable to take the services of the real estate agent while selling or buying property after all you are earning or making such a big investment only to have a peaceful and profitable transaction and not to have a stressful future and the money they charge is negligible compared to what you are getting.