Home buying or selling can be the single biggest financial decision you’ll ever make, so when the time comes to take that leap of faith you need an agent who understands both your needs and values. Unfortunately not all agents are equal: some may specialize in selling homes quickly or for less than average while others have extensive residential real estate knowledge that will help find you the perfect property that fits within your budget. How can you determine which real estate agent best fits you?

Ramsey ELP (Elite Local Provider) is a program created by financial guru Dave Ramsey that connects his followers with local professionals such as realtors, mortgage brokers, tax advisors and insurance providers. While this supposedly provides “exceptional customer service,” its actual business model violates federal law while misleading consumers.

Ramsey ELP is an illegal broker-to-broker collusion scheme, which illegally matches consumers with specific realtors for commission kickback. This occurs through Ramsey Solutions (dba The Lampo Group LLC) operating outside RESPA’s anti-kickback regulations.

While Ramsey ELP advertises itself as linking consumers with Realtors who share similar financial philosophies, this is simply untrue. Instead, those participating are Realtors who agree to collude together and pay a referral fee directly to Ramsey Solutions; such a practice constitutes a clear conflict of interest that violates federal law.

However, Ramsey ELP charges hefty fees on top of normal realtor referral fees, including an upfront signup fee of $3,000 and ongoing monthly fees that make it hard for some realtors to afford this service. Furthermore, very limited lead screening occurs within their system.

Ramsey ELP may charge high fees, but consumers have many other options to consider if they require quality real estate agents without those fees. Top discount brokerages such as Clever Real Estate and UpNest provide full-service agents who charge as little as 2% for listing fees and buyer’s agent commissions, plus they offer competitive mortgage pricing as well as holding their agent partners to high performance standards.

So if you’re in search of an ELP agent that shares your financial values, make sure to compare prices and services offered by various companies before selecting one. Also keep in mind that using lenders without down payments could save thousands in closing costs, while it’s always wiser to work with an experienced realtor with vast local knowledge who can negotiate fair deals for you – happy house hunting!