Homeowners who attempt to sell without using a real estate agent usually do so in order to save the commission. They believe that to sell without an agent is to net more money from the sale. The irony is that the median price of 'for-sale-by-owner' (FSBO) homes was 15.4 percent less than the median price for home sales where an agent was involved.

One risk of selling without an agent is that you sell too low. FSBO's tend to attract buyers who are looking for a bargain. Like FSBO sellers, FSBO buyers want to save money by paying less. The FSBO seller hopes to save the cost of the commission; so does the buyer. Unless the asking price is clearly below market value, a FSBO buyer is likely to think he can negotiate an even lower price because there are no agents that need to be paid.

Other factors contributing to the lower sale price of FSBO properties is that many sell before they even hit the market. Most of these to a relative, friend or neighbour. Nine percent sold to a buyer who contacted the seller directly.

Maximum exposure is the way to ensure that you sell for the best possible price. Multiple offers and higher sale prices are the result of exposing the property to multiple buyers, not simply to a friend or neighbour.

Another problem for FSBO sellers is determining what price to ask. If you don't know how much to ask, it's understandable that you might inadvertently leave money on the table by selling too low to the first buyer who expresses serious interest.

Emotions run high when the FSBO seller has to negotiate face to face with their Buyer friend, neighbour or relative. You may be able to find out what price you should ask by interviewing potential listing agents. However, if you don't expose the property, you'll never know if you could have sold for more on the open market.

Most sellers, however, won't want to give up a significant profit just to avoid having to pay an agent. The number of sellers choosing to sell without an agent has decreased in recent years.

Another risk of selling without an agent is that many direct sale transactions never close. Some deals fall apart because the buyers aren't properly qualified for financing before they enter into a purchase contract. A good real estate agent will make sure that you don't accept an offer from a buyer who isn't qualified. Pre-qualification and pre-approval can be accomplished quickly if you know who to call for assistance and when it's appropriate to do so.

Another reason why many FSBO deals collapse is that there's no one with experience working to move the transaction along and resolve problems when they arise. This often involves negotiations.