Heart-warming is the word that comes to
mind. There was the Winnipeg real estate
board petitioning the province recently to
lower the Land Transfer Tax charged to home buyers.
Noble gesture. Pure selflessness that, wanting
to help get more people into a new home by lowering
the cost of buying. And God bless their sentimental
old hearts for thinking about us.
Of course, the agents’ plan would end up costing
all of us. Any cut to provincial revenue, such as
lowering of the LTT, would have to be subsidized
by the rest of us. But hey, it’s the thought that
counts. We wouldn’t want to offend the sensitive
souls down at the board by quibbling.
So here’s a suggestion for our realtors to embrace
that would save every home buyer more than a
piddling reduction in the LTT. And it would give
free rein to the realtors’ natural generosity. We’re
surprised they haven’t thought of it already.
Why don’t they just base their commission on
the same graduated scale as realtors in every other
major centre in Canada? That would save thousands
on the sale of every home. Commission rates
are negotiable, it’s just that a lot of Winnipeggers
are not aware of their options.
Here’s how it works in every other market:
Realtors charge 6% or 7% on the first $100,000 of
the sale price and 2.5% on the rest. As a matter of
fact, agents in other cities such as Edmonton,
Calgary, Toronto and Vancouver can’t believe
Winnipeg realtors are still getting away with charging
a flat 5%, 6% or 7% across the board.
Not using the graduated approach means
Winnipeg realtors make thousands more on every

RECENTLY SOLD WITH COMFREE
FULTON ST., River Park South
List Price: $294,900
Sold For: $294,000
Saving in GST & commission: $18,522
(6% comm./GST)
home sale than their brethren in other cities. And
given the escalation in home prices here, the past
years have yielded a bountiful windfall for our
boys and girls at the board.
Let’s look at the difference that makes on the
commission on the sale of a $300,000 home:
| City/Rate |
Commission |
GST |
Total |
| Winnipeg/6% |
$18,000 |
$900 |
$18,900 |
| Edmonton/7%/2.5% |
$12,000 |
$600 |
$12,600 |
Winnipeg Agent’s Windfall: $6,300
In this example, the Edmonton agent receives
$7,000 on the first $100,000 of the sale price, but
only $5,000 on the rest. The Winnipeg agent collects
33% more for selling the same house.
So you can see how Winnipeg realtors could give
area homebuyers a huge break in the cost of homeownership
and still be no worse off than their colleagues
in other cities. Now, that would be heartwarming.