These days I see a lot of For Sale By Owner signs. To a certain extent, the notion may be driven by tough economic times. With equity in homes evaporating because of the market conditions, it might be a necessity for some sellers to go the DIY route. It is a question brought about by the perception of saving the commission and a nagging sense that, hey, maybe I could do that.

Maybe you can. Maybe you shouldn't.

A seller that decides to go the For Sale By Owner route invariably wants to save the commission paid to a Realtor. They therefore take the overwhelming task of marketing and negotiating the sale of their property putting themselves at huge risk.

The buyer who looks at For Sale By Owner properties is also trying to save the commission. What else would make them searching for themselves when they could have the services of a professional Realtor for free.

So how does this work? If the seller is trying to save the commission and the buyer is also trying to save the commission...

No wonder about 80% of the For Sale By Owners eventually end up listing their property with an agent.

-- Masood Vatandoust