In a recent radio show, financial expert Dave Ramsey issued a strong warning to homebuyers considering using a family member as their real estate agent. Speaking to a caller from Florida, Ramsey advised against employing his newly licensed mother-in-law to sell his home. He cautioned, “You’re going to get screwed,” emphasizing the potential for emotional conflicts and lack of accountability that can arise when mixing family with real estate transactions.

Dave ramsey

Ramsey’s advice aims to help homebuyers avoid the pitfalls that come with family dynamics in business dealings. Often, loyalty or convenience leads buyers to choose family members, but this can be a risky move both personally and financially.

Pros and Cons of Hiring a Family Member as Your Real Estate Agent

Andrew Fortune, a real estate agent and brokerage owner at Great Colorado Homes, shares his insights: “I’ve seen many deals between family members go bad. I had a past client use me to buy their house, but decided to use their uncle to sell it later on. They argued over the price and repairs, and never fully reconciled their differences. The tension spilled into family gatherings for months, and hurt feelings stuck around long after the sale ended.”

Fortune’s experience underscores the potential downsides of such arrangements. Emotional bias and lack of objectivity can cloud negotiations, and there’s a risk of permanently damaging relationships if things go awry.

However, Brett Johnson, owner of New Era Home Buyers in Englewood, CO, notes that family deals can work under certain conditions. “In those cases, the agent was already experienced and everyone agreed upfront to keep it professional. When expectations are clear and both sides understand this is a business transaction, it can go smoothly.”

What Dave Ramsey Recommends Instead

Ramsey suggested a hybrid solution: co-listing the property with a more experienced agent while allowing the family member to assist in a support role. This arrangement can preserve family relationships while ensuring professional handling of negotiations, paperwork, and pricing strategy.

Homebuyers are encouraged to vet agents independently, asking about their neighborhood expertise, recent transactions, and negotiation style. “Ask agents how many homes they sold in your area last year,” advises Fortune. “Request details about their last few deals, and ask how they handle tough buyers or bidding wars. Call a past client to see if the agent delivered on promises.”

Compare Agents to Get the Best Deal

To make informed decisions, Ramsey recommends using tools like the RealChoice agent comparison tool. This free service allows buyers to compare agents based on transaction history, experience, and customer reviews, ensuring a match based on skill and fit—not just family ties.

In conclusion, as Ramsey and other experts highlight, choosing a real estate agent should be approached with the same diligence as hiring any other contractor. The stakes are high, and financial implications are significant. “You would not hire your cousin to fix your roof if they were not an experienced roofer,” says Fortune. “Real estate is too big a deal to risk on family feelings alone.”

For more insights, visit the original article on Realtor.com.

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