An agent working w/ foreclsoures needs to understand the process, be knowledgeable about title, be aware of other potential liens, the challenges and time constraints on clearing clouds on titles and patience.
An agent working with FSBO's needs to be part armchair psychologist, have excellent people skills, and lots of patience. while some FSBO's will conduct a transaction like business, it is not a realistic expectation. Even stellar agents have difficulty detaching themselves when selling their own home. There is not criticism intented here. Our homes are personal to all of us (most of us?) and this poses a unique challenge.
I don`t see any drawbacks to expanding your search to include FSBO & Foreclosures. We have already covered the pro`s and con`s of Foreclosures. It is a Buyers Market you should look at everything in the area you want to live. I don`t see any drawbacks only the benefits of more homes to choose from.
What`s with all the questions? Are you writing a book?