I am willing to take the stand if it will help the realtor commission lawsuits, but the defense might have second thoughts. The complaint is that realtors have conspired to force sellers to pay a standard, non-negotiable commission rate to the buyer’s agent. My testimony could go like this:

Plaintiff Attorney: You look like you’ve been around a while. Have you ever sold a house to a buyer that cost less than $100,000?

JtR: Yes

PA: Was the commission rate offered by the seller and publicized in the MLS in the 2.5% to 3% range?

JtR: Yes

PA: Have you ever sold a house to a buyer that cost more than $2,000,000?

JtR: Yes

PA: Was the commission rate offered in the MLS in the same 2.5% to 3% range?

JtR: Yes

PA: Have you ever sold a house to a buyer on the first day you met them?

JtR: Yes

PA: Has it ever taken one to two years to sell a house to a buyer?

JtR: Yes

PA: Were the commissions in both cases in the same 2.5% to 3% range?

JtR: Yes

PA: As a buyer-agent, have you ever negotiated your commission rate with the seller or listing agent?

JtR: No

PA: No? Why not?

JtR: It is strictly forbidden by the rules.

PA: The rules? What rules?

JtR: The NAR Code of Ethics forbids any negotiation of the buyer-agent’s commission paid by the seller.

PA: Is that the strict Code of Ethics that all NAR Realtors abide by, and what makes them different then all other licensees? The Code of Ethics that NAR has advertised on TV ad nauseum for decades?

JtR: Yes

PA: Judge, I rest my case.

Jim the Realtor

Jim is a long-time local realtor who comments daily here on his blog, bubbleinfo.com which began in September, 2005. Stick around!

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