 Okay guys what's up it's Ricky Caruth here so is the DOJ correct about buyer agency? In this ongoing lawsuit with NAR I posted a video last week I'll link it below if you aren't caught up with the situation but there's one little part of this lawsuit that keeps running through my head over and over and over again I'm looking at it from everyone's perspective trying to figure out how I feel about it okay and I want to explain how I feel about it in today's video and I would love to hear your thoughts and it's all about buyer agency all right so before we get into that I want you to do one little easy favor for me doesn't take much at all smash the like button right under this video and also I'm going to link a video I did a couple years ago that I really like I think this is a really incredible video for you to watch it's called the real estate coaching scam and if you haven't seen this video I want you to watch it I want you to let me know if you want me to remake the video okay so let's dive in and I really want to hear your thoughts on this okay the part of the lawsuit that I keep having problems with running through my head okay is the fact that they're saying that it's not right okay for real estate agents to tell buyers that their services are free okay they're saying that it's not right for real estate agents to tell buyers that they basically work for them for free and I ran this through my head so many different ways I looked at it from the buyer's perspective I looked at it from the Department of Justice's perspective I looked at it from the the NARS perspective I looked at it from the broker's perspective I looked at it from everyone's perspective over and over and over again trying to figure this thing out and I see everyone's perspective I see the Department of Justice's perspective I see NARS perspective I see the brokers the buyers I see everyone's perspective and what I can't wrap my head around is the fact that I still keep coming back to the same realization and that is that the sellers are paying the agents. The seller is paying that buyer brokerage fee. This is just the way I feel about it and one reason is I keep running through the scenario of okay what if the buyer didn't have a broker? What if they bought directly from the listing agent? What if it wasn't for sell by owner? No one's even represented at all and I keep looking at it from an apples to apples perspective and I keep thinking if the buyer is not represented I don't see them getting any better of a deal. I don't see them getting two and a half percent or three percent or two percent or whatever their commission would have been to the buyer broker. I don't see the buyer getting that kind of discount if they don't have a broker. I see the for sale by owner putting that two and a half cent in their pocket. I see the price of the property whatever the praise value is I see that price being paid regardless if there's a buyer broker involved or not. So in my mind sure technically looking at it from certain points of view you can see where okay on the HUD it's got the buyer brokerage getting a fee and so you can say okay they're not working for free they're actually making money but then it comes back to the question of who is actually paying the buyer broker? That's the part that I can't wrap my head around and a lot of people I was reading through the comments in the video I did last week you know you guys put a lot of comments and put a lot of thought into it and there was a lot of incredible perspective in those comments and some of you said that you feel like this is moving in a direction where the the buyer will end up having to pay their own fee their own commission okay the buyer is gonna have to tack on the buyer brokerage fee on top of the price that's what a lot of you said. So who knows what direction is really going in I also had a couple comments commenting on my comment about the saying that commissions may end up being a 4% regular you know commission that may be a standard commission and some of you said I disagree with you you know suggesting that no I'm not suggesting that I believe that eventually the long term vision of it is that it will organically the market itself dictates that not me I can't change the commission based on what I say on a video what I'm saying is is I think that the pressure from tech and you know knowledge and you know the fact that everybody can get all the information that they need and the fact that there's so many discount brokers and I feel like it's it's not really there yet but we do see pressure and I think we'll eventually lead to a place that is still gonna be extremely lucrative now maybe it never goes there maybe it does maybe it doesn't I just think eventually heck it could take another decade who knows right nobody can tell the future but back to the subject in hand here about who is actually paying that buyer broker commission I still feel like and I've thought about it for days now I still feel like the seller is actually paying that commission and that we are working for the buyers for free on their end because regardless if we're involved or not or if there's an agent involved or not I believe that they're still gonna pay that appraise value let's talk apples apples here okay a praise value sure you may find you know deals okay somebody that sells under appraise value you may have people that that buy stuff over appraise value I don't think that's really taken into consideration what the buyer brokerage fee is I think that's just the market and what people are willing to sell for buy for I think the seller pays that commission out of their proceeds it doesn't come out of the buyers proceeds it comes out of the sellers proceeds so that's why that's that's kind of the reason why I feel I still feel even though this is coming up and there's a lawsuit against an R about it I still feel like the seller is paying that commission if you're unfamiliar with this lawsuit I posted a video last week I'm gonna link it below along with the real estate coaching scam video that I want you to let me know if you want me to remake it or not if you made it this far thank you so much for watching I do live calls with agents all over the world that's every Tuesday at 4 p.m. central right here on this YouTube channel I also do a talk show with three agents every Thursday at 4 p.m. central where I let those agents pick my brain or chat or ask questions whatever they want to talk about for a good 10 or 15 minutes apiece as always you can join my free coaching program at zero to diamond.com I've got scripts 90 to action plan tutorials my weekly email the entire strategy of how sell 100 properties every year as a single agent thank you so much for watching today's video I'll see you on the next one let's go