With regard to FSBOs (For Sale By Owner), you will find a seller ready, willing, and able to sell, but sometimes with a jaded attitude. The reason they are selling By Owner is that they believe that the agent adds no value, that they can do the same job and 'save the commission'. Most agents do not like to work with FSBOs because of that attitude, and no amount of facts and figures can seem to illustrate to them that they will actually make more on the sale by using an agent! I personally have seen one seller lose $20,000 and another lose $35,000 because they were so happy to not pay the commission that they didn't realize they both accepted offers that were lower than their neighborhood dictated! The commission on the first would have been $14,400 - a difference of $5,600 that they could have pocketed if they had listed; the second: $17,940 commission, a difference of $17,060 if they had listed and sold at the price their neighbor's exact model did. Yep - the buyers were 'saving the commission' too! Foreclosures are another caveat - in order to take advantage of a foreclosed property, do your homework. A foreclosure is exempt from many things that an owner is not. Nothing is guaranteed, in fact it is expressly excluded. You need to be sure that you have the funds to fix or replace, and that your lender knows what you are doing and the loan is the right type if you need to rehabilitate. The most critical thing about purchasing either a FSBO or a Foreclosure is that there is no one but you to depend on. There is no one to stand behind any warranties or guarantees. You are on your own. There are disclosures in California that although they do apply to a FSBO, the seller cannot be forced to do anything. If you do find an agent who will handle a FSBO for you, you have found an agent who will work for twice the liability for half the pay - and there aren't many. Likewise with a Foreclosure, minimum disclosures are used, yet the 'seller' is exempt from the Transfer Disclosure Statement - the basic disclosure about the house!