Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What advantage may FSBOs seek when trying to sell their homes independently?

1. Lower selling prices

2. Savings on commission fees

3. Faster sale times

4. Wider market exposure

The correct answer is: Savings on commission fees

When homeowners choose to sell their properties as For Sale By Owner (FSBO), one of the primary advantages they often seek is the opportunity to save on commission fees that would typically be paid to real estate agents. By opting to handle the sale independently, sellers can avoid the conventional commission structure, which can be a significant percentage of the sale price, often ranging from 5% to 6%. This savings can be particularly appealing, as it allows homeowners to retain more of their sale proceeds. While other aspects such as market exposure, sale price, and time on the market are relevant considerations for FSBO sellers, the potential to save money on commission fees is typically the most immediate and compelling motivation. It aligns with the goals of many homeowners looking to maximize their profits from the sale of their property.