My husband and I very recently (as in just a few weeks ago) sold our home by owner.
We did a lot of research on Zillow beforehand to look for comps, and priced somewhat aggressively high.
We staged the house well, used our good camera to take nice, well-lit photos, and put them up up on Zillow along with a comprehensive description. We were also VERY clear in the ad that this was a FSBO, and that a buyer's agent commission was NOT included in the asking price.
Calls started flowing in within minutes, and we had 22 showings in three days. Many agents called despite the fact that we hadn't paid to list on MLS, and I think that was largely because their buyers found it on Zillow and liked the house enough to want to see it, no matter what the selling arrangement was.
After three days of showings we received multiple offers. The one we accepted was for our full asking price, PLUS the buyer was adding an additional 3% to pay his agent. Buyer also paid for inspection.
We are using a title company to handle the paperwork, which is costing about $1200. Overall we are saving nearly $20k, and are very happy we chose this route. Honestly, I didn't expect it to work; I thought we'd list by owner for a couple weeks, probably nothing would happen, and then we'd list with an agent and go from there. So it's been a very pleasant surprise.
I think ultimately, whether or not selling your house FSBO is a good idea depends on many factors. Your local market, your comfort with setting your own price/handling negotiations, and (most importantly) your house itself and it's condition and overall appeal will all inform whether or not this is a good option for you.