Are realtor commissions negotiable on HUD homes?

Question

With HUD homes, it seems that the realtor commission is deducted from the buyers bid and not counted in the net price received by HUD.

The HUD forms say that the realtor commission can be up to 5%. Is this negotiable? Can a buyer find / ask a realtor to take a smaller commission?

Similarly, is it possible to ask a realtor to split the highest commission with the buyer?

Answer 1

Negotiable? Yes. Split? No.

You are correct in reading the HUD website. The negotiation of how much someone working for you is to be paid should be done PRIOR to them working for you. If you want to go looking for a Realtor who will do this for you, that's fine. There are offices that do reduced commissions. I recommend that instead of simply looking around for the cheapest agent you can find, find the best agent you can find. A good agent will save you more than 2 or 3 percent of value. You want an agent who will work with you, through as many houses as is needed.

If your agent has already found you a house - has done the work for the paycheck - now is not the time to bring up cut-rate commissions.

On splitting, a broker may give a rebate to a principal. To do this though, all parties involved in the transaction must be made aware, and sign off - HUD wouldn't do that. They would just suggest putting in a lower commission from the start. The rebate issue is touchy though and may be on it's way out. It could be construed as an inducement to buy, and some agents no doubt have used it as such.

Answer 2

Her commission is not too high, but is is negotiable. However - negotiation of commissions is something done BEFORE a Realtor brings you an offer. Don't know how the laws are in Florida, but in Texas, the contract for sale is a contract between the buyer and the seller. (yes, the Realtors help the buyer and seller in negotiating the contract and the Realtors do fill it in) The commissions paid out is on a separate contract altogether. Also, a Realtor in Texas could lose their license for writing an offer contingent upon their commission. She should never have brought you an offer or even disclosed the name of her client UNTIL commissions were settled. Now you have an offer you can probably accept with no commitment to pay any Realtor fees - but, like I said - I don't know the laws in Florida. You might want to check with the local board of Realtors or the state licensing agency there.

Answer 3

First you can not receive a real estate commission with out a license to sell. It is illegal. Second, how about you split your paycheck with me. Would you like that. This is an absurd question, and rather insulting to yourself. How selfish and cheap do you think you are going to look when you ask for this? People think that its ok to dig right in our pockets because it is a commission. Well let me tell you, we work hard for our money just like you. You work 40hrs you expect a 40hr paycheck right?
Well when we are told we are getting a 5%commission we expect a 5% commission. Not to be asked to split it. I would laugh at you, and then walk away. This is so petty.
RE Agent,
Remax

Answer 4

Just wondering if you split your paycheck for the work you do with anyone who works with you. Remember, you get what you pay for. The best and kowledgable people will refuse to work with you. You might also consider getting a real estate license, as it is illegal to receive a real estate commision if you are not licensed.