"Many 'For Sale by Owner' sellers feel that they are saving the Realtors' commissions by selling on their own," said Andy Wong of Alain Pinel Realtors in Saratoga. "However, they don't know how much effort goes into selling a home. More important, they do not realize how much liability they expose themselves to by not knowing the contract and escrow process."

Wong said a buyer is entitled to certain obligations, so the whole deal could fall apart if the seller doesn't have someone help them through the process. "At the end of the day, the seller could be unhappy because they didn't sell, and the buyer could be unhappy because they didn't get the house. It could end up being lose-lose," said Wong.

A survey conducted by the National Association of Realtors shows that the number of consumers selling their home without the assistance of a real estate professional dipped slightly at the end of the last decade to about 16 percent of all homes sold. The survey also revealed that nearly four out of five homeowners sold their previous home with the assistance of a real estate pro.

The typical "For Sale by Owner" tends to be younger, earns less money than those who use a Realtor, has a median age of 42, and earns a median household income of $63,700. The survey found that getting the price right was a problem for 12 percent of those trying to sell a home by themselves. Other problems included understanding and completing the appropriate paperwork, helping a buyer obtain financing, attracting potential buyers and selling within the length of time planned without knowing if they got the best possible price for their property.

John King of Alhouse King Realty in Palo Alto believes owners have only a 4 percent chance of selling a home on their own without the use of a professional Realtor.

"You limit your exposure on the market," said King. "Even if the seller uses a service to put their home on the MLS [Multiple Listing Service], their home is perceived to be a discount home and buyers' agents may be leery of having to work directly with a seller without another agent on the other end of the transaction."

Additionally, buyers who go to "For Sale by Owners" assume that the seller is saving some money on the commission, so they automatically discount the price they are willing to offer, said King.

"Most buyers are represented by an agent, and the seller usually ends up paying the commission, so the sellers are really only saving half of the commission and have no one to negotiate for them on their behalf. Therefore, their bottom line net result is no savings at all. Plus, they have the added expense of advertising and time spent showing and marketing their home themselves, time off of work, and many wasted hours dealing with unqualified buyers," King said.

Since a home is usually the largest investment someone will make during a lifetime, King believes homeowners cannot afford to make a mistake. "I have listed homes previously being sold by owner and it usually ends up with a result that is better than the owner could have gotten on their own, and the transaction went much smoother for both parties having agents to assist them. It is not always price that is the issue; it is the bottom-line net result from having greater exposure to the market, whether the market is strong or weak," he said.

Asher Robertson, a broker with Alain Pinel Realtors in Los Gatos, said there are usually two types of people that are interested in buying a home that is for sale by the owner. The first one is the buyer who isn't aware that they can obtain the services of a professional Realtor at no cost to them. If a buyer is unaware of this fact, they most likely aren't qualified to purchase a home and will waste the owner's time.

The second type of buyer is what Robertson calls the "shark" or professional investor, who preys on the vulnerability and profit hunger of most "For Sale by Owners."

"They will write up purchase agreements with numerous weasel clauses and penalties for the seller; they use fear and intimidation to further take advantage of the unsuspecting homeowners. Some of the more aggressive "For Sale by Owner" hunters will look for items that the seller failed to disclose and file a lawsuit on the very same day they close escrow. The lawsuit will mention that all the mandatory disclosures were not given and name all the laws that the seller unknowingly broke," said Robertson.

The end result is that the costs and headaches associated with the legal wrangling will often leave the "For Sale by Owner" with no choice but to make a large cash settlement, which comes with a lot more headaches, said Robertson.

Joette Schenck, now a Realtor with Alain Pinel Realtors in Los Gatos, shared her experience more than 10 years ago buying from a "For Sale By Owner" without a buyer's agent.

In addition to escrow closing two weeks late, there were many problems with the house. Faucets had reversed hot and cold water and wouldn't turn off; electrical switches were not connected to power; rusty, broken tools and cans of paint were left in the backyard; and the seller did not disclose a robbery that had happened in the house.

"This was an extremely overwhelming experience for a single mom and her two daughters, a 3-year-old and 7-year-old," said Schenck. "Buyers and sellers should both be represented by real estate agents. Good Realtors earn every penny of their commissions."