“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.
I should clarify, I see this situation happening when there is NO Paypal Goods & Services option. If you offer a 4% G&S option, that will build trust, and the buyer may decide that saving 4% is worth it.