What is For Sale By Owner?

Legal Definition
For Sale By Owner, or FSBO, is the process of selling real estate without representation by a real estate agent. There are many factors to weigh when considering selling FSBO v. hiring an agent. Will I price it right? Who will prepare the documents? Do I really have the time and patience for this? Will I get in legal hot water? One of the primary reasons owners choose to sell on their own is to avoid paying the real estate commission which can amount to a hefty sum. In the US the agent's fee is, on average, 5 to 6% of the selling price of the property which for a $290,000 home is between $14,000 and $17,000. These facilitators are state-specific and are becoming more common as more owners choose to sell on their own.
-- Wikipedia
Legal Definition
When a property is sold by the owner and not an agent. No commission is paid making it cheaper. It can be complicated however and an agent is trained to handle such complications.