What is the broker commission on a HUD Home sale?

For sales to buyers other than Governmental Entities or HUD-approved Nonprofits, HUD will pay commission to listing brokers and selling brokers based on averages for the area and depending on the level of service provided to HUD and on value and market conditions. The selling broker may contact the listing broker for transaction-specific commission amounts.
 
HUD will pay commissions not less than:
  • $200 each for the listing broker and selling broker for sales of vacant lots; and
  • $500 each for the listing broker and selling broker for all other sales.  
For sales of vacant lots, HUD will pay commissions totaling not more than 10 percent of the bid price.

For all other sales, HUD will pay commissions totaling not more than 6 percent of the bid price.
  
Listing brokers and selling brokers will split sales commissions. The selling broker’s acceptance of a lower commission does not affect the amount the listing broker will receive.
 
For discounted sales to buyers other than Governmental Entities or HUD-approved Nonprofits, the listing broker and selling broker may calculate commission based on the bid price before any discounts are deducted.
 
The listing broker and selling broker must enter on form HUD-9548 the actual commissions to be paid. 

For additional information please contact the Asset Manager with jurisdiction over the property.  To locate contact information for the Asset Manager please visit the HUD Homestore website at https://www.hudhomestore.com/ and click “Help” in the gray tool bar.
 
For policy information see Handbook 4000.1 IV.B.2.k.iii. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-03719