Here are a few questions we get asked frequently. Please e-mail your question.

What if an agent brings a buyer to my FSBO property, do I pay a 3% commission?

Good question, but before I answer, keep this fact in mind: don't be fooled by agents telling you that all buyers have agents! Fact is: most Kansas City metro area buyers, have not hired a buyer's agent and most buyers do not use agents. So, when selling FSBO do not assume that most buyers have an agent because in fact, they do not. Today, most buyers shop the private sale properties first (FSBOs), because they know that every home, listed with every agent, has an inflated price to cover their high commissions. Buyers do not like overpaying for real estate! Today, FSBO is the sign of value to buyers.

The answer is NO, you are not required to pay a buyer's agent a commission, nor should you. But, most buyer's agent will ask you to pay! See how to easily handle that in the next paragraph below. The fact is, the term "buyer's agent" was coined from the new real estate laws in MO and KS. The new law, Brokerage Relationships in Real Estate Transactions Act (BRRETA) was passed to help consumers know exactly who works for who in a real estate transaction*. A buyer's agent works for the buyer, was hired by the buyer and is paid by the buyer - NOT THE SELLER!

It's true, the seller does NOT pay 3%, so do not include that expense when pricing your FSBO property. You have a huge advantage in today's market by pricing your property at net market value. Agents biggest mistake is that they overprice all listings because they have to include their high commissions and their negotiating "wiggle room". Your property is now much more attractively priced than every other agent-listed property in your area. Buyers are smart, they do the math too. You sell faster and net more of your equity, your buyers get a much better value. It is win - win for both parties when buying and selling privately.

Where the confusion comes in is when the buyer's agent appears on your front porch with a potential buyer. The agent will always ask you to pay 3% (or some amount) if their buyer buys your property. Of course the agent is always going to ask you to pay, so their client does not have to! They'd like you to believe that is how real estate works, i.e.: I bring you a buyer, you pay me 3%. Wrong. What they are really saying is, "would you mind paying me 3% so I beat you up and get the lowest price for my client the buyer". What they do not want you to know is that that the agent gets paid whether you pay them or not. The buyer has a legal obligation to pay the agent when the buyer signed the agent's Buyer Agency Agreement to hire the agent. So do not feel sorry for the buyer, nobody forced your buyer to hire an agent to beat you up for the lowest price. In fact, the buyer's agent is doing what she was hired to do, get the best deal for her client, the buyer. If agents had their way, they'd pass laws to force every buyer and every seller in America to use agents. The American Dream is not necessarily home ownership, but your right as an American to buy and sell it privately, without third party interference or laws. This right is protected by the Constitution of the United States.

* In January 1,1995, the Brokerage Relationships in Real Estate Transactions Act (BRETTA) became law in the state of Kansas (similar in MO). This Act clarifies relationships between real estate brokers, buyers and sellers.  BRETTA calls for full disclosure of the working relationships and legal obligations between agents and their Clients or Customers.

Agents are now required by state law to disclose to you who they are working for. A buyer's agent works for the buyer. The buyer's agent is hired by the buyer. The buyer signed an agreement to compensate the buyer's agent...not the seller! This disclosure must take place early in the relationship with the agent.  So, when you hear "buyer's agent" now you know who pays who and who is really working for who. You can read the KS Act here and pay particular attention to line F about Buyer's Agents:

http://www.accesskansas.org/krec/rules_regs/58-30102.html

If I see a house I like that is listed on the MLS with an agent, and call the listing agent, will they discount the price 3% for me since I do not have a buyer's agent? Good question. The answer is NO. This is another one of those little secrets that agents do not want you to know. Even though the listing agent's duty is to the seller, they will try to refer you to their spouse or other real estate "team" member to act as your buyer's agent. This way, the entire commission (usually 6%) stays with the listing agent and/or their company. They will also tell you that the law prohibits them from giving you a 3% discount because you are not a licensed real estate agent in the state. However most agent-listed properties have both a commission and "wiggle room" built into their asking price. Sometimes the listing agent may suggest that you make an offer that is 3% less than the asking price and they'll see if the seller wants to accept your offer. But if the "wiggle room" is 3% the original 6% commission is still included in the sales price. Listing agents love it when a buyer shows up without a buyer's agent. Because then, they could either find a friend/relative or team member to represent you or they may try to convince you to let them be your "transaction broker" and essentially keep the entire 6% for themself. Bottom line: the listing agent works only for the seller and her duty is to get the best deal for the seller - not you the buyer. And, the 6% commission never goes away from the final negotiated price. If you are looking at agent-listed properties, call us first, before you call the listing agent, with the property address and we'd be happy to "demystify" these agency relationships for you. We can also act as your buyer's agent and protect your rights as a home buyer. We've assisted many buying customers over the years and on average they save over 5% on their purchases...much better than just their 3% side! Call us today at: 913-498-3726.

Can I be FSBO and on the MLS? Agents say I can.

No, not in KS or MO. The only way anyone can be on the MLS is if they list with an agent. Everyone who lists with an agent must pay two (2) commissions. 1) to the broker who "lists" you and 2) to an agent who represents the buyers if you accept their offer. Now, the discounted listing broker may "list" you in a way that allows you the right to sell it yourself (what they call FSBO), which means if you secure your own buyer without a buyer's agent involved, you are not obligated to pay the buying agent's side commission. But you are still required to pay the listing broker's fee...these are the fees you see on web sites offering FSBO and MLS for $95 or some seemingly low price.

There is certainly no shortage of discount real estate brokers offering to slap your FSBO property on the MLS for what appears to be small amounts like $95 or $149 or whatever. But be very leery of these offers, as your true cost will be much higher than you can ever imagine!

When its all done and over, you can figure on it really costing you 10% - 20% or more of your original asking price. Seems most discount brokers "forget" to tell you some vital information. For example, when you go on the MLS, you must pay two (2) commissions...one to a listing broker and one to a selling broker. You must pay for all your advertising outside of the MLS which is very expensive. The MLS is not available to the public. It takes the discount broker all of 5 minutes of their precious time to list you on the MLS, not bad $95 for 5 minutes work! Your property will NOT be advertised on any major local broker sites. Most brokers only put listings which offer the highest commissions and do not display certain types of listings where the seller has the right to sell themself.

Also, do not count getting full asking price from a "buyer's agent" as they work for the buyer, not you the seller. Their duty is to get the lowest price from you the seller, for their client, the buyer. You can also expect the buyer's agent to request expensive repairs and maintenance after the buyer does their home inspection, many times this is thousands of dollars. Plus, you can expect the buyer's agent to ask you to pay for an expensive home warranty for the buyer.

Most important, is today's home buyers are very smart, and they know if any home is listed, it has an inflated price to cover agent fees. Study both the advantage, and the disadvantage of this listing. We suggest you sell FSBO, our customer's 13 year track record of success speaks for itself. Sell faster, pay no commission, buyer's prefer FSBO.

What is the difference between you and some of the other FSBO companies in the area?

Actually, there are no other true FSBO companies in the KC Metro area. There are a few companies disguised as FSBO but they are either real estate agents in disguise trying to fool sellers to get your listing, or mortgage loan companies trying to sell mortgages. These type companies do not have the sale of your house without a commission as their objective. They want to trick you into believing they can help you sell, when in fact, they really want something else. In fact, they really hope your property will never sell because the longer it is for sale, the more leads they can get from your potential buyers! Don't put a middleman between you and your buyer. Our only mission is the fast sale of your house...no middleman to interfer.

What makes Pearson's different from other FSBO Services?

Before you pay to advertise with an internet only FSBO service ask questions. Who are they? Are they local? What do they really know about KC real estate? Can you contact a real person? Do they know local laws and customs? How many buyers actually go  to their site? Are they available to answer your questions? Have they helped over 20,000 KC area customers sell? What is their experience level? Feel free to talk with our current customers. Our sellers are always happy to talk with prospective sellers. Ask them about us and our services. Our experience in the FSBO business is unmatched. Nobody does it better, our customers really do sell fast.

Here are just some of the many reasons successful homesellers have chosen Pearson's over the competition.

1. We are a local family owned business, started in 1996, whose sole mission is to provide the best exposure and marketing support to help you sell successfully "by owner."  Other so-called FSBO services are really tied into mortgage companies and discount real estate agencies who have other agendas. That is, they want to sell you a listing, or mortgages, or whatever. Our sole mission is to help you sell your property with no commission.

   We know the FSBO business. Others come and go. Our 13 year track record of success speaks for itself.

   Buyers call YOU, not a call center, not an agent. Phone numbers are always posted in your ad, and buyers can also email you securely. Companies who don't publish your phone number and redirect buyers to their business are more interested in THEIR phones ringing, not yours. Some websites only allow email and sell the addresses to other companies for profit. You end up getting more junk.

   Pearson's FSBO essentially "wrote the book" on for sale by owner in Kansas City . Nobody has sold more or help more people sell their property in the history of KC real estate. Since 1996, Dale Pearson has helped over 20,000 area families successful sell FSBO. Our sellers learn from the experts. Our famous "How To Sell Your Own Home" seminar is conducted every month, and boasts over 15,000 attendees since 1996. Our seminar is so popular it is used by FSBO services throughout the country as a model.

   Our photo ads are current, not filler to make a website look successful. Companies, especially national FSBO websites, that offer free listings, or one-time payments are LOADED with outdated and expired properties. They don't take them off because it makes them look bigger. Buyers soon figure out they're wasting their time however and move on to other websites, like ours, www.fsbo-kc.com that take care of their inventory. We also include Yahoo!, Google real estate & HomesByOwner.com and other major sites!

   Sellers can receive an email (upon request) when your property goes live on our website. This is a great service that very few FSBO services offer.

   We post your Open House events and even give a Mapquest or Yahoo map link for directions. Many websites don't allow location or time sensitive information, again because it's seldom removed making the ad look stale. They also don't want anyone to have direct contact with you. When you make us your first call, we will give you free use of your AD# to use in any other advertising you choose to do.

   Need signs, information holders, open house supplies? We've got them all - many are included with our All-inclusive package plans. Visit our convenient FSBO retail stores, shop online or call us. We're stocked full of everything and anything you need to buy or sell your own property! The largest selection of signs, directional arrows, forms, contracts, disclosures, how-to books & videos, pagers, banners, radios, shoe covers, flags, info boxes, info tubes, radon & lead paint test kits, for rent signs, estate sale sales and much more!

   Have questions? Wonder how to work with agents to your advantage? We've got the answers. Because we're local, we know the local market. We know that things may come up during the process and sometimes just a few marketing pointers can make a difference. Our motto is, "No commission & plenty of assistance!", so don't be afraid to call and ask questions along the way.

   We provide the best Virtual Slide Show tour with color photos and descriptions. Many call this the absolute best home tour available in KC, no fished lens distorting photos, no waiting for pictures to load, simply the best presentation of your property to active buyers. This is way over what other sites offer.

   Buyers NEVER have to register to use our website. Sites that force visitors to register track calls and make annoying calls to the buyer. This does not benefit you as the seller.

We noticed some area real estate companies have FSBO sounding names but they charge commissions and a lot of money upfront - what's up with this?

You are correct. Some companies have recently popped up offering to help you sell your home in  non-traditional ways. Some use the words "by owner", others tout a low commission. We welcome having you compare us to any other program out there. We're confident we have the best program. Only through our great exposure will you get top dollar for your house fast, and keep more money in your pocket where it belongs.

Due to our customer's 13 years of success of selling FSBO faster than agent-listed properties, many start-up real estate companies have named their business with FSBO sounding names...trying to mooch off our customer's success. From them, you can expect very high pressure and forceful "salespeople" trying to get you to list immediately (they get a fat commission when they "sign" you). They boast of selling by owner, yet charge high fees upfront fees and/or high commissions to simply slap you up on the MLS. If they convince you to go on the MLS, you are agreeing to pay a buyer's agent to get the lowest possible price from you, and they never offer full price! In addition they 'forget' to tell you that they do not advertise your property and they have many hidden fees like charging extra to do your paperwork. Also do not assume that all buyers have agents - most buyers today will not be with a buyer's agent. Be very leery of these tricks. Our FSBO customers sell faster than agent-listed properties.

When should I put my house for sale?

We recommend that you begin marketing your home for sale before you start looking for another home. A good rule of thumb is at least 90-120 days prior to your desired closing date, start selling. Do not try to "time" your sale with the purchase of another property - timed sales seldom work! If you are leaving the area or are building a new home, start advertising six months prior to the date you expect to leave or your new home will be finished. Also, do not assume you must move out within 30 or 45 days upon reaching a deal with a buyer. When you sell you negotiate 2 main items: 1) price and 2) closing date. So you can start selling in say, January and close in August, or September or March - whatever you negotiate!

I'm ready to sell now, is there a deadline to submit my ad?

No! Do it yourself, online and save. Within a few minutes you'll be up and selling worldwide. Simply follow the easy ordering instructions on this site!

How effective is your service compared to other free or less expensive web site only companies.

Extremely effective. The fact is, since 1996, our FSBO customers sell twice as fast, on average, as homes listed with agents, and they net more money. Plus, we save our customers in closing cost fees ($100 to $300). The whole beauty of our proven FSBO marketing packages is that most of our customers actually save more money than they invest in our packages...not to mention thousands in commission savings. We are local, we know the business, we answer the phones, we answer your questions, we know the laws, we are honest and fair. Ask any of our over 20,000 satisfied KC area customers. No brokers, no commission, no excuses, no kidding!

Be careful - if you go with other internet only services, you may be very disappointed when you don't get the exposure and assistance they claim you'll get. Assume nothing. Do your research first before you spend a penny or sign anything. Ask some questions...

- Are they a web-based company in some other part of the country - or are they based in the KC metro area so you have local representation?

- Do they know local real estate customs and laws?

- How extensive is the advertising exposure and assistance will you get?

- Will you be listed on just one website or many?

- Will your phone number appear in your ad so you get calls directly from buyers, or are you paying  to generate calls to a mortgage company or to a real estate agent? Think about it - if buyers have to go through a lot of trouble just to get your phone number they won't bother buying your house. Without the buyers you won't sell!

Do I have to be a member of FSBO, or a marketing package customers, to shop in your stores?

No, we have no memberships and welcome everyone into our retail stores. We carry the area's largest selection of professional FSBO yard signs ($7 to $100), directional arrows ($4 to $20), how-to-sell books, videos, voice mail, pagers, banners, forms, contracts, disclosures, St Joseph statues, shoe covers, Home Warranties, seminars and much more!

Do you recommend advertising my home in the local newspaper?

We believe in advertising. Classified newspaper advertising is expensive. Assuming a time on market being between 60 and 90 days a small classified ad, run just on Sundays for 2 months, can cost you $500 or more. Of course this is for 3 to 4 lines and no photo. If you advertise in the newspaper, we suggest you include our internet web address of your listing from our web site (see line 4 below in example). Now, you can show off your home with color interior and exterior photos! The following example has been used very effectively by our customers and helps your home standout from the other classified ads:

FSBO - 2 Story, 3 BR, 2 BA
finished walkout, $145,000

Open Sun 1-3   000-555-1234

www.fsbo-kc.com/Listing.asp?on=0000

PLACE YOUR 4 DIGIT ID # IN PLACE OF ZEROS ABOVE! (after = sign)

When I’m taking pictures, are there any special requirements?

The best photos are taken when it is raining or foggy outside.  Photos taken in sunlight have too much glare and harsh shadows. We accept photos in the following formats: color prints on photo paper, digital .jpg or .tif. Do not embed the photo(s) in any other software or program, i.e. MS Word, PowerPoint, PDF, etc. Try to back up far enough to get the whole house in the shot with some space left on either side. Do not crop photos prior to sending them or bringing them to us. If you are using a digital camera, use the camera’s highest resolution or quality setting. We’ll take care of the cropping and resolution requirements for publication in the magazine and on the internet.

copyright 1996-2008
all rights reserved