Sunday, December 11, 2011
Your HUD Broker Earns 3% Commission
Commissions, for many first time buyer's has been confusing. HUD homes, are no exception. When an offer is submitted the maximum commission paid to the broker representing the buyer is 3%. The listing broker also makes 3%. The commission to the buyer's agent, is not fixed in stone. They may be willing to discount it a bit in order to assist in facilitating a winning bid. Just ask, it is up to the buyer's agent, if they are willing to do this. Some will some won't. Please note, it is negotiable. the listing side is a bit more tricky. These commissions in most states are fixed, and have not observed flexibility. The listing agent is also allowed to represent the buyer, in those cases the real estate broker can earn a 6% commission. This does create an unfair competitive advantage, to buyers using a non-listing broker. As the listing agent, has incentive to discount the buyer side of the commission. This is a new change in the HUD policy. A change many brokers disagreed with because of the bias. If you submit an offer on a HUD home you must use a HUD Approved Broker. This search feature will be available soon form this blog.