Hi Chorister1 - Did I spell that right????? I agree that honesty is the best policy and it does not sound as if you have an agreement with the agent showing the property. I am sure that the Realtor will appreciate your being up front and telling them how you feel about the service, or lack of relative to your experience. It may proove to be a valuable lesson for all. It is so important to provide a high level of service and make sure that the client is getting the very best. It is great that you have found the home of your dreams.

I am a certified mortgage planner and not a Realtor - I apologize if I offended any respected Realtors out there . . . not my intention. Good Will plain and simple. Go for it Chris...... If I can be of help planning your financing, please feel free to contact me. My office number in GB is 920-965-0700 x 106 - I wish you the very best in your new home..... Make it great and amke it your own.....

Chorister1,
My suggestion would be to be upfront and honest with your agent. I know I would appreciate knowing if a Buyer I was working with found a property that was FSBO. It sounds like you do not have a Buyer Agency agreement with your Realtor.
But, before you jump into this, you may want to be absolutely sure that the property is priced fairly and that everything is being disclosed properly. The money that you (and the Seller) think they will save could be eaten up quickly if you have an issue arise that could derail the transaction (or things could show up later...)
Maybe see if your agent can do a one-party listing agreement with the Seller- allowing him/her to represent YOUR interest in the transaction. This way you could be assured that all the proper contingencies could be included in the offer, and the agent would be acting on your behalf (rather than the Seller) You could write your offer with the commission being paid by You to your agent (and adjust your offer price accordingly)
Otherwise- it would be prudent to hire a Real Estate Attorney to draft the offer and work on your behalf during the transaction. Again- a cost you would bear- but it could be WELL worth it in the end.

Whatever you decide- all the Best to you !

A little bit more information:

A) Our Realtor hasn't been very helpful in FINDING us any properties to look at; when we have found properties online, she has taken us to see them, but she hasn't been able to come up with anything for us to look at.
B) The seller is a Realtor who isn't currently practicing because she is moving out of the area. (Does she have certain obligations because of this?)

If you haven't entered into a Buyer Agency agreement you should be okay. You may want to have your Realtor talk with the FSBO to see if they are willing to pay a Buyer's Agent fee. I have worked with buyer's in the past that purchased a FSBO home and we were able to work something out with them. The FSBO may be willing to pay a smaller fee than if they had listed with a Realtor in order to sell the home. With a tighter market sellers may be more flexible.

Good luck!