One of the most well-respected and top-producing realtors in our state recommended a listing price for our home that was 15% below our estimate Instead, we listed FSBO and offered a 2.5% buyers agent commission. We were under contract in 2 weeks for full price, no contingencies, inspections for informational purposes only and, since we worked direct with the buyers, no realtor commissions. We basically earned $100k more tax-free by not using a realtor and working 12 extra hours. It pays to understand real estate. In our case, it paid us about $8,300 per hour.
I got caught in a bidding war for a house in 2016, and made the stupid decision to offer $100,000 over the asking price. My realtor should have been the one to point out I was acting out of emotion, and should reconsider that. She got her nice fat commission, and we ended up paying more than the house was worth. My expectation of a professional is to be honest, and help us to make a decision that is in our best interest.
As a realtor, i would have had u sign that what u are doing is against the realtors advice. I have done this. All realtor are not crooked. There r crooked doctors bet u still go. I have been in business for 19 yrs full time and endeavor to do what is best for my clients. So don’t lump us in one bag. Sorry u paid 100k more than list price. Must be a hell of a house to go that far over.
yep, the lesson that you learned is that ultimately YOU are the one that has to manage all the risk, including the risk that you are not getting good advice from a realtor (which is the norm). My niece was buying her first home, was being very patient in trying to find a good price on something that wasn't going to have any serious issues, looked at many, many places that her realtor thankfully talked her out of, however eventually he grew impatient and ended up giving a resigned nod of approval on a POS mobile home with all sorts of structural issues (on it's own lot at least). She ended up buying it and has had many problems (unlevel floors, shoddy work done in the past, HVAC nightmare, so many leaks etc). I'm so pissed off at her realtor (which happened to be one I recommended, though I'm done with him after that)
I agree, we sold our house in 2020 for sale by owner only because we had a real estate friend to walk us through the steps for free (we made this guy alot of money through referrals). We go pro pics and made the most money. Moral of the story is you need a pro in your corner.
The reason for Dave's advice (that a home is your biggest asset and you need someone that knows what they are doing) sounds solid. The reality of it though, is 90% of realtors don't really know what they are doing (or rather they know what they are doing but it's simply for their best interest not their client's, they are not fiducuaries)... and it comes at a HUGE price where you are probably better off gambling the money away by doing it yourself. When everything goes right then everything turns out great (which happens almost all the time since land registries are well oiled and real estate lawyers are generally well versed in conducting those transaction). realtors ride on the reputation of the well oiled system and when things go wrong are more ill-equipped than the actual stakeholders to deal with it. I've used realtors to sell my home multiple times in the past but it was purely for convienience not because it saved me money (same reason I still use credit cards).
@davidrojas6457 Agreed. Dave is right, though, most realtors DON'T have a clue, which is why he kept reiterating find one who is doing lots of transactions. DON'T use the middle-aged housefrau at church who got her license four months ago and hasn't done one deal yet..
@@cherrypieforbreakfast1499 When something goes wrong though (an inspection failed to show something that should have been caught, the buyer's financing doesn't go through, missing documents from seller, delays with the title etc) neither the brand new rookie realtor nor the experienced vet who moved a hundred houses a month can/will do anything to bail you out. They might give you a shoulder to cry on while they are consciously trying to close on a different deal, but only if they think there is a way to make some money off you still.
Who would you rather drive you across town? A person with a driver's license who's driven before, or a person without a driver's license who's never driven before?
I’ve never understood why realtors should get a PERCENTAGE of the sales price. What right do they have to a percentage of your money? It should be a flat fee. The percentage of the sales price could be more than your equity. They make a fortune while you lose money on the house.
@@TonyCox1351I’d disagree, I believe our realtor was incentivized to turn quick, not to get us the most money. To Dave’s point the market is crazy and even realtors now are not experts in estimating current conditions.
@@TonyCox1351 That’s a fair point, but that also means the nicer the house the more they make. Nicer homes are easier to sell unless they are outrageously expensive. There are a few realty companies now that will sell for 2% (on the seller side) and you still get the MLS listing, pictures on the website, etc.
I'm a realtor in Kansas, not sure about the rest of the world but commissions are 100% negotiable here. Don't like percentage, I'll do it for a flat fee. Don't like my flat fee, sale it yourself. Problem solved.
Had a realtor once that suggested we thrown in the riding lawnmower. Dumb idea because we were afraid to use it. He also suggested a listing about $40k too low.
Uhhhh, the key is the realtor is not always helpful and doesn’t even know the contract!!!! They are just people with keys and passwords but when I ask “Can I back out?” I shouldn’t have to school my realtor on what a contract says. WTF? Not to mention, when we sold our house they priced us $425-$450k when the house next to us sold for $800k (of course bigger and upgraded) but we had a bigger lot and a better view. My hunch said price at $464k and it sold for $500k. My photographer and my staging sold that house… not the realtor. They were just trying to offload as quickly as possible, again without knowing contracts. I sold it in 2 weeks which is my target streak… I just have good luck with that. These were 2 different realtor groups in 2 different states and less help than people deserve.
Dave knows how to get people out of debt but he’s got a dog in the fight with real estate so I wouldn’t listen to him . Data shows real estate is softening from Cali to Texas, Tennesee, Florida , New York and Massachusetts and Nh. Lots of price reductions. Homes sitting much longer. It’s going to go down
Caller #4(Mark), he will find out that he's simply trading one $500k house for another! The raw land for $260k will need another $250-$300k to build! And there's NO chance that the builders will lower their prices bruh! Just downsize and you will be debt free!
Yeah at least the monthly payments are going toward investments where he is building equity rather than throwing more money away on monthly rent that will never be recouped. My guess is he has gotten buyer's remorse on buying property before he was financially ready, so now is feeling insecure with having to juggle two payments.
@@carlaritchie331 He owes less money on his current home with a low pymt than the cost of the raw land! He can still sell the raw land and the current home (for whatever reason he's trying to leave it) and then downsize and find a less expensive investment venture and enjoy his income.
I've definitely had a lot of the same thoughts as Mark though (e.g., my home price has risen xx% over the last few years, how could that be sustainable and not come crashing down sometime soon??), but he's in such a better position than most folks that could end up completely underwater on their homes. He has so much equity in the house, makes a great income, and already has another asset he can sell off if things get squirrely. I think Rachel hit on the head when she asked about just getting out of debt being Mark's primary motivation. We get so focused on the "gazelle intensity" of becoming debt free that we forget to take a deep breath and be mindful of the bigger picture.
The last caller needs to chill and ride the wave in his home. I do not understand his reasoning to rent for way over the cost of his monthly mortgage. Heck...throw what you would be paying in rent toward the mortgage rather than just giving it to the apartment owners. 😳
@@amireallythatgrumpy6508 I just talked to my agent and she said 4% of top rated agents are doing 95% of the transactions and they are barely hitting 80 transactions a year let along 100-200. I guess it’s all market specific.
I agree. If you do some basic research, you'll find it's not that complex. Dave's "home dentistry" analogy is misleading. Selling a home is more akin to flossing and brushing your teeth rather than pulling a tooth. I wouldn't pay someone to brush my teeth.
Hey Ephrum(second caller), if you're looking for a nice townhome to purchase in the Atlanta-metro area, I have a 3/2-1/2, two-level, 1500sq ft for $250k. HOA Dues are only $130/month, close to I-20. The comps are going for $280+ in this area! Just let me know, thx.
First callers name was definitely Sergei which should have been pronounced sir-gay. You can hear the Slavic accent, and it’s funny hearing Dave pronounce it sir-gee 😂
why would a realtor need liability insurance, it's not like they assume any liability or risk to begin with. When things go wrong the realtor ays buh-bye and takes off.
One of the most well-respected and top-producing realtors in our state recommended a listing price for our home that was 15% below our estimate
Instead, we listed FSBO and offered a 2.5% buyers agent commission. We were under contract in 2 weeks for full price, no contingencies, inspections for informational purposes only and, since we worked direct with the buyers, no realtor commissions.
We basically earned $100k more tax-free by not using a realtor and working 12 extra hours.
It pays to understand real estate. In our case, it paid us about $8,300 per hour.
I got caught in a bidding war for a house in 2016, and made the stupid decision to offer $100,000 over the asking price. My realtor should have been the one to point out I was acting out of emotion, and should reconsider that. She got her nice fat commission, and we ended up paying more than the house was worth. My expectation of a professional is to be honest, and help us to make a decision that is in our best interest.
As a realtor, i would have had u sign that what u are doing is against the realtors advice. I have done this. All realtor are not crooked. There r crooked doctors bet u still go. I have been in business for 19 yrs full time and endeavor to do what is best for my clients. So don’t lump us in one bag. Sorry u paid 100k more than list price. Must be a hell of a house to go that far over.
yep, the lesson that you learned is that ultimately YOU are the one that has to manage all the risk, including the risk that you are not getting good advice from a realtor (which is the norm). My niece was buying her first home, was being very patient in trying to find a good price on something that wasn't going to have any serious issues, looked at many, many places that her realtor thankfully talked her out of, however eventually he grew impatient and ended up giving a resigned nod of approval on a POS mobile home with all sorts of structural issues (on it's own lot at least). She ended up buying it and has had many problems (unlevel floors, shoddy work done in the past, HVAC nightmare, so many leaks etc). I'm so pissed off at her realtor (which happened to be one I recommended, though I'm done with him after that)
You know your relator's commission is paid by the seller right? 🤔
@@spiculum1836 yes … but the Realtor fee is most assuredly built into the seller’s asking price.
@@spiculum1836no, many do not know
I used a Ramsey ELP. From start to finish was an excellent experience. We sold in 34 days from day of listing. Made more than had I listed myself!!
I agree, we sold our house in 2020 for sale by owner only because we had a real estate friend to walk us through the steps for free (we made this guy alot of money through referrals). We go pro pics and made the most money. Moral of the story is you need a pro in your corner.
The reason for Dave's advice (that a home is your biggest asset and you need someone that knows what they are doing) sounds solid. The reality of it though, is 90% of realtors don't really know what they are doing (or rather they know what they are doing but it's simply for their best interest not their client's, they are not fiducuaries)... and it comes at a HUGE price where you are probably better off gambling the money away by doing it yourself. When everything goes right then everything turns out great (which happens almost all the time since land registries are well oiled and real estate lawyers are generally well versed in conducting those transaction). realtors ride on the reputation of the well oiled system and when things go wrong are more ill-equipped than the actual stakeholders to deal with it.
I've used realtors to sell my home multiple times in the past but it was purely for convienience not because it saved me money (same reason I still use credit cards).
Had me right up until that last sentence 😂
@davidrojas6457
Agreed.
Dave is right, though, most realtors DON'T have a clue, which is why he kept reiterating find one who is doing lots of transactions. DON'T use the middle-aged housefrau at church who got her license four months ago and hasn't done one deal yet..
@@cherrypieforbreakfast1499 When something goes wrong though (an inspection failed to show something that should have been caught, the buyer's financing doesn't go through, missing documents from seller, delays with the title etc) neither the brand new rookie realtor nor the experienced vet who moved a hundred houses a month can/will do anything to bail you out. They might give you a shoulder to cry on while they are consciously trying to close on a different deal, but only if they think there is a way to make some money off you still.
I also thought selling a house is easy….until I got
My Real Estate License and saw what is happening behind the scenes;)
The NAR just got assigned a settlement of 1.8 billion for price fixing
Good realtors earn it. They have the network. They know other realtors.
Having a real estate license makes you a good real estate agent just like having a driver's license makes you a good driver.
Who would you rather drive you across town? A person with a driver's license who's driven before, or a person without a driver's license who's never driven before?
Lmao. NOT !!
But hiring a good realtor will definitely make your selling/ buying easier and rewarding:)
I’ve never understood why realtors should get a PERCENTAGE of the sales price. What right do they have to a percentage of your money? It should be a flat fee. The percentage of the sales price could be more than your equity. They make a fortune while you lose money on the house.
With a percentage of the sale price, there is incentive for them to get you more money. With a flat fee they don’t care if it sells for $50K less
@@TonyCox1351I’d disagree, I believe our realtor was incentivized to turn quick, not to get us the most money. To Dave’s point the market is crazy and even realtors now are not experts in estimating current conditions.
@@TonyCox1351 That’s a fair point, but that also means the nicer the house the more they make. Nicer homes are easier to sell unless they are outrageously expensive. There are a few realty companies now that will sell for 2% (on the seller side) and you still get the MLS listing, pictures on the website, etc.
The only people that believe a percentage is the right way are agents that get to take vacations from each sale.
I'm a realtor in Kansas, not sure about the rest of the world but commissions are 100% negotiable here. Don't like percentage, I'll do it for a flat fee. Don't like my flat fee, sale it yourself. Problem solved.
6% is an undue burden on the seller. I will sell myself. Thanks Dave.
Had a realtor once that suggested we thrown in the riding lawnmower. Dumb idea because we were afraid to use it. He also suggested a listing about $40k too low.
Uhhhh, the key is the realtor is not always helpful and doesn’t even know the contract!!!! They are just people with keys and passwords but when I ask “Can I back out?” I shouldn’t have to school my realtor on what a contract says. WTF? Not to mention, when we sold our house they priced us $425-$450k when the house next to us sold for $800k (of course bigger and upgraded) but we had a bigger lot and a better view. My hunch said price at $464k and it sold for $500k. My photographer and my staging sold that house… not the realtor. They were just trying to offload as quickly as possible, again without knowing contracts. I sold it in 2 weeks which is my target streak… I just have good luck with that. These were 2 different realtor groups in 2 different states and less help than people deserve.
Dave knows how to get people out of debt but he’s got a dog in the fight with real estate so I wouldn’t listen to him . Data shows real estate is softening from Cali to Texas, Tennesee, Florida , New York and Massachusetts and Nh. Lots of price reductions. Homes sitting much longer. It’s going to go down
Someone wants my house 4x the value of it cash! I’m tempted!
Use a real estate lawyer, a realtor is a waste of money, I've sold 4 houses on my own
Caller #4(Mark), he will find out that he's simply trading one $500k house for another! The raw land for $260k will need another $250-$300k to build! And there's NO chance that the builders will lower their prices bruh! Just downsize and you will be debt free!
Yeah at least the monthly payments are going toward investments where he is building equity rather than throwing more money away on monthly rent that will never be recouped. My guess is he has gotten buyer's remorse on buying property before he was financially ready, so now is feeling insecure with having to juggle two payments.
@@carlaritchie331 He owes less money on his current home with a low pymt than the cost of the raw land! He can still sell the raw land and the current home (for whatever reason he's trying to leave it) and then downsize and find a less expensive investment venture and enjoy his income.
I've definitely had a lot of the same thoughts as Mark though (e.g., my home price has risen xx% over the last few years, how could that be sustainable and not come crashing down sometime soon??), but he's in such a better position than most folks that could end up completely underwater on their homes. He has so much equity in the house, makes a great income, and already has another asset he can sell off if things get squirrely. I think Rachel hit on the head when she asked about just getting out of debt being Mark's primary motivation. We get so focused on the "gazelle intensity" of becoming debt free that we forget to take a deep breath and be mindful of the bigger picture.
The last caller needs to chill and ride the wave in his home. I do not understand his reasoning to rent for way over the cost of his monthly mortgage. Heck...throw what you would be paying in rent toward the mortgage rather than just giving it to the apartment owners. 😳
Dave you said get a high Octane agent who does 100-200 transactions per year. Dude no agent is doing that right now at 8% rates.
There are absolutely agents doing 100-200 deals Year in EVERY MARKET. Top 10% are all doing it
Dude a small number of agents do almost all of the transactions.
@@wilmarshall5926 top 10% doing that many deals? Please send me your sources that prove your case. I would love to know.
@@amireallythatgrumpy6508 I just talked to my agent and she said 4% of top rated agents are doing 95% of the transactions and they are barely hitting 80 transactions a year let along 100-200. I guess it’s all market specific.
Maybe it's just me. But my home purchases and sales have never been complicated
Same. Had a great agent that made me a shit ton of money, and the process was painless.
I agree. If you do some basic research, you'll find it's not that complex.
Dave's "home dentistry" analogy is misleading. Selling a home is more akin to flossing and brushing your teeth rather than pulling a tooth.
I wouldn't pay someone to brush my teeth.
in nashville a 100k up in value
Why would you ask somebody thats been in real estate their whole life this question😂 of course they’re gonna say to use an agent
Word of advice, as someone who comes to my real estate family. When we see a for sale by owner, we start foaming at the mouth. We just see a sucker.
Hey Ephrum(second caller), if you're looking for a nice townhome to purchase in the Atlanta-metro area, I have a 3/2-1/2, two-level, 1500sq ft for $250k. HOA Dues are only $130/month, close to I-20. The comps are going for $280+ in this area! Just let me know, thx.
"Did you use pliers or a dentist?"
LOL....classic. Yeah, if you're a rank newbie use a realtor, however bad ot may hurt you to give away the 7%.
plus the dentist just uses pliers anyways.
Sweating thinking I just put our house on the market instead of using a realtor. 😅
😂 Good luck.
First callers name was definitely Sergei which should have been pronounced sir-gay. You can hear the Slavic accent, and it’s funny hearing Dave pronounce it sir-gee 😂
hows bitcoin doing mr ramsey
Still worth zero in real terms. Just like every other day.
It sucks
Let these sellers sell their own houses. I smell law suit. They don’t realize the liability of selling a house. Realtor carry a liability ins.
why would a realtor need liability insurance, it's not like they assume any liability or risk to begin with. When things go wrong the realtor ays buh-bye and takes off.
So does a real estate lawyer and way cheaper, people are just lazy to do research and do a little work to sell on their own
✝️
Realtors & Notaries are the biggest scheisters in the universe. Give me a break.
Get a Pro
🎉👍🏾
HOW OFTEN DID DAVE sell homes without a realtor/how many back in his youth before he lost everything? And when did he start using a Realtor full-time?
Dave buys houses and keeps them. He very rarely sells them