Good morning fellow investors. I'm a newbie, and trying to get a 2nd deal. I made an offer on a HUD property, a bit lower than the ask. The bank countered and gave me a number by saying "HUD will accept any bid that is at least equal to or greater than the minimum acceptable net offer." My realtor explained that I'd have to add the entire brokers' commission amount (about $6K) to the bank's counter offer so that after deducting the commission, the bank is left with their own counter (net offer). So basically the bank is asking me to pay the broker's commission. Has anyone experienced this before? Any input is appreciated!
That is correct as the "counter" you received from HUD is the net to HUD so all commissions and closing costs(if applicable) must be added to that amount
Keep in mind what you received is not really a counter but an invitation to re bid. If someone bids $1 more than you tomorrow, they will be awarded the property
@Greg H. thanks for the reply! So many things to learn. I increased my bid including the broker commission. Hopefully they will accept it.