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

What term describes sellers who market their homes independently by placing ads and conducting open houses?

1. For-sale-by-owners (FSBOs)

2. Broker-for-sale

3. Traditional sellers

4. Online sellers

The correct answer is: For-sale-by-owners (FSBOs)

The term that describes sellers who market their homes independently by placing ads and conducting open houses is "For-sale-by-owners," often abbreviated as FSBOs. These sellers choose to bypass real estate agents in the transaction process and take on the responsibility of selling their property themselves. This approach allows them to save on commission fees typically paid to real estate agents, as well as to have more direct control over the selling process, including pricing and marketing strategies. Recognizing FSBOs helps in understanding various sales strategies used in real estate. Although there may be alternatives where sellers engage with real estate professionals (like traditional sellers who typically work with agents), FSBOs distinctly represent those who opt for an independent route to sell their homes. This independent marketing approach also differentiates them from online sellers, who may utilize digital platforms but often still engage services that assist with the sales process, rather than handling everything themselves.