Pros: The primary benefit of selling your home without a real estate agent is to avoid having to pay someone to market your home and represent you in the transaction.
The commissions or fees paid are typically 5% to 6% of the sale price of your home. For example, if you sell your home for $600,000 you will pay between $30,000 and $36,000 in commissions. $15,000 to $18,000 will go to your agent (Listing Agent) and $15,000 to $18,000 will go to the buyer’s agent (Selling Agent) for procuring a buyer.
Cons: Because you are unrepresented in the transaction, you have to be careful to avoid mistakes that create liability with the legal disclosures. You also have to effectively handle the negotiations, contract terms, contingency removals, contract disputes, title and escrow.
Oftentimes you will be negotiating against an experienced agent that is representing their buyer’s interest over yours. One of the biggest mistakes For Sale By Owners make is trusting the buyer’s agent to represent them. That is like going to court without an attorney and asking the opposing counsel to represent you, too. It's just a bad idea.
Equally ineffective is relying on escrow and title to represent you or provide the forms. Escrow and title are neutral parties and can provide required forms, but cannot offer any advice as to how to properly complete them. They are unable to assist with any disputes that come up before, during or after the close of escrow. Escrow's role in the transaction is to help execute the agreed upon terms of the transaction and nothing else.