Homes listed with Realtors may or may not be at market "value". In many areas, prices are dropping so determining market value is tricky for even experienced agents. The seller ultimately determines the sales price as it is their home; a Realtor is merely the "agent" of the seller, assisting them in selling their house. Many times FSBOs will say that their price is "less than market value" and you're getting a deal because they are cutting out agents, but this is not always the case. Many sellers actually net more money when they list with an agent because they are are getting exposure and advertising that they can't afford, the Realtor pays for it, brings in pre-qualified buyers, and the house sells quicker and for more money. Most FSBOs overprice their houses and then tack on the agent commission if they decide to list, but a good Realtor will educate them on market price and encourage them to be realistic if they want their house to sell. Beware when you purchase without an agent. I spoke with an investor who was selling his rental property when he asked me about values in the neighborhood. I told him with his house remodeled, he might be able to get $300K if he is lucky. He said he should get $350K because of the money he put into it. We all know that what you put into a house has no bearing on the market value; market value is simply what a ready, willing, and able buyer will pay. He ended up selling FSBO to a young couple who were not represented and they paid $309K for this 30 year old interior unit townhome which at MAX should have sold for $300K - several are listed below that now and are not selling. Was that really market value? Yes, because they did pay it. Should they have? No, they paid too much. Sometimes a buyer might think they're getting a good deal by cutting out agents but if you don't know the values well, you may overpay. The recommendation of having your own buyers agent is a good one and most sellers, even FSBOs, will pay your buyers agent - have your agent contact them first and let them know that you are interested, but you wish to be represented and have your buyers agent negotiate with them to pay your buyers agent commission so it doesn't come out of your pocket. GOOD LUCK!