I buy and sell plenty using PayPal, both on and off eBay. I've never had an issue. Fees typical of accepting a credit card. I never ship until payment is cleared (usually within a day, especially if the other party has a PayPal account), and I always use PayPal's own merchant services and invoicing system; this provides a better paper-trail to protect both parties, and doesn't expose any of your own account details.
I totally agree with daddygcycles advice to take a deposit on PayPal, and the cash balance in-person if the buyer is picking-up.
Don't forget that there are plenty of folks (including myself!) who will, for various reasons, only purchase when there is a PayPal option. For me, it's a combination of using funds in my own PP account (from other stuff I've sold), or to use PP's 6-months-no-payment/no-interest deal.