I have already covered how to wholesale a HUD home and the advantages to it in another post, but here is a really big kicker for any of you out their who invest in HUD homes.
On all HUD properties Realtors get to decide on their commission which can be up to 5% of the price…
I have been involved in several transactions where my clients bid was lower than the highest bid, but the other persons greedy realtor was taking a full 5% and I was taking 3%.
Since HUD awards the property based on the NET price, YOU ARE ALWAYS paying your Realtors commission, NOT HUD.
Many investors find their own HUD homes then just end up calling up an agent to write the offer and get them into the home…
The trick on your end is to let the agent AHEAD of time, before they have taken “Mental ownership” of their commission…Just ask “Would you mind writing up an offer on a home I’ve found for $500?”
This take scenario puts the agent in the position of comparing $0 to $500 which they will choose every time. As opposed to the agent who has taken “mental ownership” of their commission who will be comparing their $500 to their 5% of the sales price commission, in which case they become a little loco.
hope this helps a few of you…