Can it be an FSBO if realtor is involved?

Question

sometimes I see an "FSBO" in CL that turns out to be being sold by an agent. Is that just tricky marketing or what?

Fred Heller · Answer

I suppose some unscrupulous real estate agent could be doing some kind of "bait and switch" gimmick. But he/she would be risking a lot in most states for deceptive advertising.

The more likely scenario is it's an agent selling his/her own property. And in most states, agents are required to disclose their status as real estate agents even when selling their own home.

John Dirgo Deweese · Answer

In Hawaii, the law states VERY clearly that an agent advertising their own property as a FSBO is illegal. That's a 'lose your license' type offense.  So, in that state, just disclosing license status is not enough.  In fact, you have to disclose if you EVER had a license even if its not currently active.

Bill Gulley · Answer

Consider that not all licensees (brokers or agents) are Realtors, they may not have access to the MLS, they also don't need to be a member of the Board of Realtors.

They may represent an owner and the proper advertising in that case is or can be for sale by the owner, however, their representation is probably required by statute, but I don't know about CA.

Generally, a licensee is to disclose their license status, name and company on any advertisement concerning real estate for others or if they are the owner, as "owner-broker/agent". Doesn't matter what media is used. If they aren't a quick call to the local Board of Realtors might put an end to the practice. They police their own. :)

Lynn McGeein · Answer

It usually just means the owner of the home for sale must disclose the fact that he is a licensed agent so you are aware going in that you are dealing with a professional agent who likely has more knowledge than the average seller.    I used to be a licensed agent years ago, and when we sell a property, I still put owner/agent on the sign or in the online ad just to stop all the real estate agent calls trying to list my property. May be a little misleading, but definitely worth it as FSBOs are usually slammed by listing agent calls, far more than agents with real buyers.

John Dirgo Deweese · Answer

Technically, every property is "for sale by owner".  Who else can sell it except the owner? Whether there's an agent involved or not, its always the owner selling. It can't be "For Sale By Distant Relative" or "For Sale By Random Stranger".

That being said, if there is an agent involved, and they are using that phrasing - it seems deceptive to me and probably would seem that way to the state licensing authorities. Its worth a phone call to those authorities - jerks like these make all of us who work as real estate brokers look bad and they should be held accountable.

Justin Schulte · Answer

Hi Benjamin,

I frequently see this also here on CL. Unfortunately most of the time that is what it is. Agents trying to decieve people. As James said above, sometimes the agent is the owner. Either way these may not be the FSBOs you are looking for.

James Wise · Answer

Does the agent own the home?

Sometimes agents will sell their home FSBO and not list on the MLS so they don't have to pay their broker a fee.

Can it be an FSBO if realtor is involved?

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