Colorado Sales License Practice Test 2025 – Your All-in-One Guide to Passing the Exam!

A "for sale by owner" property refers to a situation where the owner of the property is selling it directly to buyers without employing the services of a real estate agent. This method allows the owner to retain the commission that would typically be paid to an agent, potentially making the sale more financially advantageous.

In such scenarios, the seller is responsible for all aspects of the transaction, including pricing, marketing, showing the property, and negotiating terms with prospective buyers. This approach can appeal to some property owners who prefer a hands-on involvement in the sales process or wish to save on costs.

The other options describe different circumstances. Properties listed with a real estate agent involve professional representation to facilitate the sale, while abandoned properties refer to those left vacant and deteriorating, and foreclosure properties are those being sold by lenders after the owner defaults on their mortgage. Each of these options represents a distinct situation that does not align with the concept of a "for sale by owner."