I have a potential buyer (investor) for my FSBO home and want to know what to look out for?

Is an investor looking at FSBO (for sale by owner) homes hoping to take advantage?? If I have an agency do all my paperwork for me, I will still be legally covered so the buyer can't screw me over, right?

Investors might look at FSBO's to get a better deal. They will pay less for the property since the owner gets more of the money. If you had a realtor, they would take 6% (ish), so the investor can offer you that much less.

Investors might want to look for people selling their own homes for more options: owner financing type stuff. Make sure you read thoroughly over any offer they make and have a real estate attorney go over it if you are unsure. Don't forget you can turn down anything you don't like! Don't let them pressure you into selling.

The buyer is taking a far worse risk then you. BUt, all that said, they would take the liability off your shoulders.

do some dodiligence, a discloser and fee agreement with the agency and you covered by rock paper and scissor

You should of hired a Realtor and you won't be asking this question. The questions would be how much am I going to get and when will I receive it.

Real estate investors have a saying "you make your money when you buy, not when you sellI." This means they like to buy at a discount. Does this mean your being taken advantage of? Only you can decide...