[Music]
aaron is with us in austin texas hi erin
how are you
i did hi george how are y'all doing
today great man what's up
so i've got a question
about selling
my house
um
i'm just taking on a promotion and so
i'll be selling within the next 30 days
and i listen to you religiously so
i kind of know your answer but i want to
make sure
instead of using a real estate agent i
was thinking about selling it myself and
using my brother-in-law who's an
attorney
to do all the paperwork to save in the
realtor cost
i did speak to a real estate agent
that sold us the house back in 2018 and
based on the comps right now she had
told me about a month ago that she felt
very comfortable listing the house at
least 2 30.
or i'm sorry 3 30 and so i was wanting
to go a little over that
and um i'm looking at maybe 20 000 in
the fees so i just he he would be doing
it for free my brother-in-law so i just
wanted to get your thoughts on that
okay your brother-in-law's not doing
anything that the real estate agent does
when you sell a house you typically use
a title company or a closing attorney to
close the house
and you pay a closing fee
and the closing fee is not that much
money
so you're not really saving anything
that the real estate agent real estate
agent doesn't close the house anyway
they just are the marketing
agent
and they sell the house for you help you
with the negotiation help you walk
through the whole sale process and all
the details but when you finally get to
closing is the only time that you're
using an attorney you don't use an
attorney to draft a sales contract on a
residential property
the sales contract's just written what
about just written up by an agent what
about the profits though
the profits
from the from the sell of the house is
don't they get like a six percent on the
profit of the house no they get six
percent usually of the
sale price of the house
and there's lots of research out there
that shows that you will get on average
more than six percent
for the house because you used a
professional
agent that knows what they're doing
and
and so the typical house sold through a
typical good high quality realtor sells
for more than six percent more
than the typical fsbo for sale by owner
like you're talking about doing because
you don't know what the flip you're
doing
i mean you already stumbled around your
pricing just in describing it to us
so aaron let's walk through this if you
do it for sale biometer let's say you're
able to sell for 300 because you can't
do any marketing and you're hoping
someone drives by whatever it is if you
get a good real estate agent you can
clean it up stage it well professional
photos mls listing the whole nine yards
you might sell for 335 which means you
made 35 more on that sales price than if
you did selling it on your own and let
me tell you here's what's interesting
let's pretend with this for a second
okay
let's pretend that there was a house
next door to you
that was the same price with the same
features for sale with a real estate
agent
and your house is for sale by owner
with the same price as the real estate
agent house next door okay
which is the way that you would pocket
the commission right you got to sell it
for the same amount correct
right and you put six percent in your
pocket if you didn't use a real estate
agent in that scenario
and if that buyer looks at these two
houses that are identical basically or
they're on the same street or they're
next door to each other they've got
basically the same features in the same
price
and he comes and knocks on your door
instead of knocking on the other door
you gotta know what he's thinking
hey
i'll be able to get this house cheaper
because this guy's not having to pay a
commission
wouldn't he
yeah
and guess what you can't save the
commission as the seller and the buyer
get a cheaper price save on the
commission as the buyer
both
it's the same commission you both can't
save it
and so it doesn't end up happening is
what happens and so it ends and your
time on the market is longer you're more
prone to make mistakes with the
valuation and what you put it on the
market for the mistakes and negotiation
are horrendous the things you leave out
of the sale contract that cost you a
deal because you don't know what you're
doing
this is your this is a your largest
asset
all you're hiring when you're hiring a
good real estate agent is a consultant
that knows what they're doing now i
don't want you to hire a bonehead real
estate agent that got their license that
doesn't know what they're doing and
doesn't sell any houses that's sweet if
you got your license on selling houses
but you're not really a real estate
agent okay the people that sell you know
40 50 100 houses a year that's a
consultant that knows what they're doing
they're they're worth their money
they're high octane high protein and
that's how you get after it and so um
you know just just no i i would use a
good real estate agent i've had a real
estate license since i was not you know
since i was 18 years old 1978
and um
it's not unusual well i actually own a
real estate company too now but as an
internal as part of our property
management process so i use them but
they are real estate agents too they
know what they're doing
to sell a property for us we don't sell
many properties hardly at all but uh
when i listed my personal residence
and i sold it last year in 2020
i listed it with a real estate agent
again i
full disclosure i owned the company but
i didn't keep the commission i paid the
agent the commission
that works here it worked for me you
know so
uh and i know what the flip i'm doing
but i also know enough to know that i
don't know
i'm not up on every little thing that's
going on out there right now because i'm
not doing deals every day i don't do 100
transactions a year personally yeah so i
want somebody that does if they're going
to help me with
the marketing of a high dollar asset get
a real estate agent and go to and don't
necessarily go back to your old agent
your old agent might be fine but go to
ramseysolutions.com click on elp get one
of our trusted people that has a high
octane high protein track record
interview three or four people
if you were gonna hire somebody and pay
them 20 grand
which you are
or 10 grand or which you are
you know you would
interview more than one
you know
you're not getting a haircut you're
selling your house that's right this is
a big biggest transaction of your life
probably so this is not amateur hour i
don't i don't trust myself to do it and
i've got a pretty fancy camera and i
feel like i've been in the marketing
world but this is another ball game and
i just hired an electrician could i have
youtubed it for hours and probably got
it wrong got in a fight with my wife got
electrocuted all to save on the
electrician's fee
absolutely but i decided ah i'm going to
let the pros do it and that's how i feel
about i don't pull my own teeth yeah
i like to see you try dave got a dentist
just tie it to the doorknob just grab
that piece of paper
needle nose pliers and have at it
i don't even work on my own cars anymore
which is harder for me than the real
estate thing but i open the hood i can't
even find the yeah i can't find nothing
when i open my car dave it's just trunk
space
you mean you can't find the battery nope
there's a big old battery under there
somewhere it's underneath oh just follow
the smell you'll find it right next to
the fire oh boy