Selling a home without an agent is an intimidating task, but if done correctly can end up saving a seller thousands of dollars in the long run.

A home that is on the market that is being sold by the owner without an agent is known as a for sale by owner, or FSBO.

Although most people in today’s marketplace are choosing to use an agent because of the increased competition, there are many who are choosing to forego the more traditional path and sell on their own.

But in order to have a successful sale, a FSBO seller must do as much research and gain as much knowledge as possible before they even put their home on the market.

The more knowledge they have, the smoother and quicker the sale will go.

This brings us to the importance of learning how to negotiate a FSBO offer. Once a FSBO seller gets an offer from a buyer, they need to know how to proceed with a transaction.

A recent article on about.com by Elizabeth Weintraub, “Negotiating as a For Sale by Owner,” discusses some important tips and things to do if you are selling a home without representation.

“There are times when it's an advantage not to have a real estate license. Selling your own home (if you're doing so without an agent) is one of those times. Because then you can offer to help your buyer write the purchase contract, and you can write the contract in your favor.”

“If both of you are unrepresented by an agent, one of you should know how to write an offer, and it may as well be you, the For Sale By Owner. Apart from making sure your buyer is able to secure financing, you will also accept a deposit and negotiate the terms and conditions of your contract.”

After the initial offer is made by the potential buyer, it is your job to make sure everything in the transaction runs smoothly and without any major upsets. This is exactly why it is so important to become extremely familiar with the home buying process before you even begin.

If the buyer you are working with has an agent, you will probably do all of the negotiations (and write the purchase contract) with that agent and not the buyer. If the buyer is unrepresented like you, then you will write the contract with the buyer, and this is where your knowledge will come in handy.

“Think about asking the buyer for a contingency offer, which is subject to finding your replacement home. If you are concerned that you won't find a suitable home, making your offer contingent on it is one way to guarantee you won't be homeless.”

“Expect that you will write a counter offer. You don't have to accept the buyer's offer, and if it is too low, always counter; don't walk away. Sometimes buyers want to test the water by poking in a toe.”

If you know how to negotiate on your own and know what to expect, you should end up having a successful sale.