Does it make sense to go it alone? On the surface, the money you save is a major incentive to try. The seller can avoid up to seven percent in Realtor commissions, about 7,000 dollars on a 100,000 dollar home. In theory, the buyer will save, too, if the seller passes on at least part of the savings. But a Realtor or broker would tell you a different story. It takes a lot of research to understand your obligations as a seller, plus a lot of work to market and sell your home for the best possible price. The adage goes: "You can get rid of the broker, but you cannot get rid of the broker's work." Real estate professionals also point out that a FSBO's inexperience will cause headaches for the buyer.

Here are some common mistakes to watch out for:

Setting the wrong price.
Without the perspective of an experienced agent who knows what types of homes are selling, and for how much, FSBOs are likelier to skew their asking price. They let emotional attachments to the home cloud their judgement. Or they simply fail to research the "comparables" and make an arbitrary decision. That's bad for the buyer who must deal with an inflated price, and bad for the seller who might lose a sale. Sellers are well advised to hire a professional appraiser to provide an informed judgement about the true market value of the home.

Not dealing with pre-qualified buyers.
When it comes to accepting an eager buyer, it can be tempting to accept someone who says, "The financing isn't a problem," or "I've got the funds." Don't do it without written assurances! Hold out for a buyer with written pre-qualification from a lending institution.

Not knowing your legal obligations and rights.
The seller has certain legal obligations he or she must perform. An attorney or settlement agent has to handle the final closing but sellers are better off retaining a good real estate attorney right from the outset. Buyers are better served that way, too. Prior to signing any contract, let your attorney review it for pitfalls.

Not knowing enough about seller financing and seller credits on closing costs.
There are a variety of ways that sellers can assist buyers with financing, ways that offer good returns for both seller and buyer. Sometimes a seller is substantially better off holding the mortgage for the buyer. Or perhaps the loan is assumable. The uninformed FSBO squanders a valuable opportunity if he or she doesn't know how to handle that type of transaction. What about helping the buyer with closing costs? The naïve FSBO doesn't know how to divide those costs fairly or what the lenders' limitations might be. Again, professional help is needed to avoid problems for buyer and seller alike.