If you’re planning to sell your home and thinking about doing it yourself, without a real estate agent, here are three critical points to consider before making your final decision.

I. Pricing Your Home

If a property doesn’t sell, ninety-nine percent of the time you can be sure it’s overpriced, because just about any type or condition of real estate will sell – if it’s priced correctly. Realtors know that overpricing a property is a mistake, and when it happens, the house usually will sit–and sit, and sit. After awhile, buyers will begin to ask, “What’s wrong with that house.”

“For sale by owner” property (FSBO) is often overpriced for several reasons.

First, while Realtors buy, sell, and negotiate dozens of properties a year, FSBO sellers may sell one or two in a lifetime. Their knowledge of the market may be limited, and they are at a disadvantage when it comes to negotiating the best price and terms. Starting at a higher price appeals to FSBO sellers because they feel it will give them some bargaining space. This is a serious mistake because, generally, when buyers see a price they consider to be too high for a particular property, they won’t even bother to make an offer for the first 30-45 days the property is on the market. Overpricing actually deters buyers from viewing and bidding on a property.

Second, FSBO sellers, like most homeowners, have an emotional attachment to their home that they translate, incorrectly, into market value. Yes, you may have spent thousands of dollars on home decorating, but your home’s value won’t appreciate dollar-for-dollar with the money you’ve invested in it. An experienced Realtor will do a market analysis to give you a true picture of where your home’s value stands compared to other homes in your area.

Third, even when FSBO sellers price the home at market value, buyers may perceive it to be overpriced. This is because the agents’ commissions are a factor in a home’s perceived market value. Every buyer knows that a seller is expected to pay the commissions of both the seller’s and the buyer’s agents. A buyer who purchases a home from a FSBO seller, however, knows that the seller is paying a commission only to the buyer’s agent. Most buyers reason that, since the seller is saving half of the commission, part of that savings should be passed on to the buyer, and they will expect to negotiate down the price of the house. So the FSBO seller is often forced to reduce the price of the house substantially. After adding up the costs of advertising, MLS fees, and other expenses involved in selling a house, and deducting the amount he would have paid to a Realtor, the FSBO seller doesn’t realize as much net profit as might be expected.

II. Finding a Buyer and Opening Your Home for Showings

Realtors delve into their networks, connect with other offices and agencies, advertise, and activate their marketing plans to find buyers. But not just any buyer—you want to be sure that the buyer will be approved for a home loan by a reputable lending institution. There’s nothing more disappointing than to be two weeks away from the closing date, only to have the deal fall apart because the buyer couldn’t get funding. Most Realtors have their buyers speak to a lender before beginning the house search. FSBO sellers, however, don’t have the same assurances that a buyer who shows up at their doorstep will be able to obtain a loan, and often buyers are hesitant to give the FSBO seller any personal financial information.

Showing a home also has its risks. Generally, when a Realtor lists a home, she puts a lockbox with the key inside somewhere on the premises so other Realtors and their buyers can have access to the house. Nowadays, the technology of lockboxes is very sophisticated. Many Realtors now use lockboxes that can be accessed only by an electronic keypad that records every entry into the house through the lockbox. This is a security measure that guards against unwanted visitors in your home.

Furthermore, only buyers who are working with and accompanied by a Realtor will be able to enter your home. Realtors generally call the listing company’s office to schedule an appointment prior to showing the home, so there is always prior notice and a written record of who is entering your home.

FSBO sellers don’t have the advantage of these security measures. Instead, the FSBO seller will have to be at home everytime someone wants to see the house, and not all of the people knocking on your door will be working with a Realtor. The FSBO seller will have no way of screening potential buyers, making it difficult to know if they are qualified, approved, or legitimate.

III. Paperwork and Troubleshooting

Pricing your home, advertising, finding a buyer, and negotiating your price and terms are only a part of the real estate transaction. The sale, to be considered a legal, binding contract, must be put in writing, which explains the numerous forms involved in real estate transactions. In addition to the basic contract form, there are inspection addenda, financing addenda, disclosure forms, special forms for selling condominiums and co-ops, arbitration forms, and forms for just about any circumstance that might arise. Some of these forms are required by state law, and some are just part of the real estate sale process, which has been fine-tuned and made more complex over the decades.

After you’ve got the purchase agreement forms signed (and by the way, do you know which forms your state requires?), there is the closing, which generally takes place 30-60 days after the signing. Until that happens, the house—and all of its responsibility—is still yours.

Between the signing of the purchase agreement and the closing, the Realtor is busy making sure the title work and loan process are on track. The Realtor is in communication with the closer and lender, so if any problems arise they can work as a team to solve them.

IV. Conclusion Selling a home on your own can be a challenge, and the monetary rewards may not be worth the effort, risk, and time you will have to put into the task. The alternative is to hire an expert. There are many options in real estate these days, and you should shop around to see which broker can offer a balance between great service and reasonable commission rate. But if you’re still determined to do it yourself, then heed the advice of this Realtor: Price the house correctly, take security precautions, and have an expert look over the contract before you sign it. Otherwise, you may end up saving a little—and losing a lot.