"For Sale by Owner": We’ve all seen those signs around town and perhaps in our own neighborhood. If you’re thinking about selling your home in the near future you might be thinking this is a great way to save some money--but is it really?

While keeping those commission dollars in your pocket instead of the real estate agent’s pocket is definitely tempting, not all homeowners are up to the challenge of selling their own home. Even if it’s a straightforward transaction, there are advertising and marketing challenges as well as plenty of legal paperwork to take care of. For most people these three items alone are a deterrent to selling your own home. A home is a financial investment so it makes sense to use a professional–in this case a real estate agent.

A real estate agent has access to the Multiple Listings Service (also known as the MLS), but you don’t. The MLS is perhaps the most widely used tool to sell homes and reaches hundreds of thousands of people looking for a home. Selling your own home involves finding your own advertising venues as well as paying for any out-of-pocket costs you incur. For many, this aspect of selling your own home can be time-consuming and frustrating.

Underpricing or overpricing your home is another good reason to hire a real estate agent who is familiar with the housing market in your area. If your home is overpriced, no one will make an offer; if it is priced too low, you will lose out financially and defeat the purpose of selling your own home in the first place. A real estate agent is also knowledgeable about additional costs associated with selling a home that you might not be aware of, such as transfer fees, notary and attorney fees, and of course hidden marketing and advertising costs.