What characterizes a "for sale by owner" (FSBO) transaction?

A "for sale by owner" (FSBO) transaction is characterized by the owner selling the property directly to buyers without employing the services of a real estate agent or broker. This approach allows the owner to save on the commission fees typically associated with real estate sales, as they handle marketing, showings, negotiations, and the closing process independently.

In a FSBO transaction, the homeowner takes on the responsibility of navigating the real estate market, pricing the property, and ensuring all legal requirements are met. This method appeals to sellers who feel confident in handling the transaction themselves and want to have full control over the process.

The other options do not accurately define a FSBO transaction. For instance, a transaction facilitated by multiple real estate companies implies the involvement of agents, which contradicts the very essence of FSBO. Similarly, limiting the transaction to cash buyers or necessitating a home warranty does not align with the core characteristics of a FSBO scenario; these stipulations can be present in various types of real estate transactions and are not specific to for-sale-by-owner situations.