“It seems like buyers demand around a 20% discount to take on the added risk of F&F. ”
I have not experienced that at all…my last 12 transactions on USAM, all F&F ranging between $16K - $150. I have sold items within 95% of my asking price. If a buyer wants protection, they can fork out 4% PayPal fee. IRS is a non-issue as you seldom make any profit when you reselling an item.
As far Trust goes, it’s a two way street. You need to do your due diligence in every transaction (feedback and pay close attention to how they are communicating), there are lot of good people out there.
BTW, PayPal protection is worthless! I never relied on them to do right by seller or buyer.