A home for sale by owner is often listed in the abbreviated form, 'fsbo.' Buying a home that is fsbo is an excellent opportunity to get a great home for an affordable price. Most homeowners who choose to sell their own home do so in order to pocket more of the profit. It is common for up to seven percent of the selling price of a home to go to the real estate agent or broker, so home sellers can save a considerable amount of money by choosing to list their homes as fsbo.The homeowner can take that same seven percent and have leverage to negotiate with a buyer for repairs, changes, or a lower price, and still come out ahead. If reducing the cost by three percent will secure a sale, the seller still receives the extra four percent as profit. Even if significant repairs are needed, the chances of coming out ahead are good.One thing that must be taken into consideration with homes for sale by owner is all of the paper work that must be done by the owner and buyer themselves. It is worth every penny to do a title search to make sure the property is deeded properly and that there are no taxes due. Never take the word of the seller at face value when buying property. Always check the records of past ownership of the property.Another important expense is that of insurance on the property. Purchasing a policy that covers all appliances, garage door openers, and such, as a new homebuyer is a wise decision. It can be very costly to move into a home where the air conditioner and heating unit is said to be in good condition only to find out three months down the road that you don't have heat on a cold winter morning. A homebuyer's policy will not only protect the buyer, it is also a great protection for the seller.