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I put an offer with agent1 for a HUD home. The bid was not accepted. I asked her to take a paycut to 3% commission. No deal. Now, can i put in another offer with agent2, without paying agent1 any residual commission if i end up getting it?
You had no right negotiating the agents commission that was being paid by the seller. Shame on you! And if you change agents you will have a procuring cause case, agent 2 will probably not get paid.
I was advised by agent1, the commission rate was, by law, not negotiable. which turned out to be false. HUD offers up to 5%. after we lost the bid, I asked her to go to 3, she said 4. so it's a no go now. what are my options? I still want the house. please help.
The commission is negotiable BEFORE the work is done, when the agent is hired. What you were doing was the equivalent of your employer asking you, AFTER you did the work you were hired to do, to take a pay cut.
However, the commission is negotiated between the listing agent and the seller, not the buyer, so you were seeking to interfere in the contract between those two entities, it would appear.
But I'm a bit confused here. Was the original agent the listing agent for the property (in which case they have no fiduciary responsibility to you whatsoever because they don't work for you, they work for the seller), were they your buyer's agent (in which case, even though they will be being paid by the seller's agent, their fiduciary responsibility is to you), or were they a dual agent (contractually working for both parties or for the transaction)?
As for your question, the first agent may, indeed, have a case for procurring cause and the second agent might not be paid for the work they did for you, so you should inform them of the situation BEFORE you get them to do any work for you.
HUD allows the agent submitting to offer to "decide" what his/her own commission - up to 5%.
My guess is that the OP wants to pay X amount for the house - and wants a better chance for HUD to accept that offer by having the agent take a lower commission.
Except, the OP has no idea if HUD would accept his X amount anyway.
This a HUD property. HUD offers up to 5% commission to the buying agent. I asked my agent to to reduce it. My agents says she cannot reduce it to HUD laws. She has to take 5%. It's all about the Net price for HUD. We put in an innitail bid, but did not get it. Lowering her commission to 3% would increse my net offer. She then said she would cut it to 4%. I basically don't want to work with her anymore, but i can't practically work with another agent because i have already worked with her. I don't want to work with her but i can work with anyone else on the property. what do i do? How do i get this house.
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