People sell by owner because they are greedy. The principal portion of the mortgage payment is minimal even after 5 years on a 30-year loan, and appreciation cannot always be counted on. If you have owned your home for only a few years, most of the equity is from the original down payment. Buyers think that the reason people sell by owner is because their house has flaws, is overpriced and no agent wants the listing. Buying and selling by owner is a continuously growing trend in the home ownership process.
Buyers are very savvy and are quite capable of checking things out for themselves.
Also, contracts can be written in a manner that provides for an inspection of the property and allows the buyer to cancel the contract if the home has any unacceptable flaws. If a home is overpriced then the appraisal will reveal this problem and the loan will not be approved. If this happens then the buyer and seller may need to renegotiate or the buyer can choose not to purchase the home. When selling by owner, if an agent comes to your door with an offer from a buyer, you have to sign the contract and sell through the buyer's agent. You can offer to pay the agent a finder's fee.