In Manitoba, real estate commission rates are typically between 4-5% of the sale price of the property. This is the combined real estate commission for both the buyer and seller agents. Approximately 90% of real estate agents in Manitoba split the commission 50/50 or half-and-half between the buyer and seller agent. This means that if the total commission rate is 5%, then 2.5% will be paid to the buyer agent and 2.5% will be paid to the seller agent (also known as a listing agent).
The above chart demonstrates the following: 5% commission on the selling price and a 5% tax that is applied to the total commission. The remaing values is what you receive.
|Property Sale Price||Less than $120K or farmland||Between $120K and $400K||Greater than $400K|
|Total Real Estate Commission||Usually 6%. Can be 5%.||4% to 5%||Usually 4%. Can be 5%.|
In suburban and rural areas where home prices are lower, real estate agents can charge up to 6% commission. The lower prices mean that real estate agents have to charge a higher percentage in order to be paid similarly to places with higher home prices. For the buying and selling of farmland in Manitoba, the total commission could also be as high as 6% as the sales on these properties typically take longer (up to 6 months) to close. Finally, commissions are usually higher for foreign buyers.
The total real estate commission rate in Winnipeg usually ranges between 4% to 5%. In very few cases, agents can charge up to 6% of the property’s price.
|Province||Typical Real Estate Commmission Rate||Average Sold Prices of Homes in September 2020||Average Total commission Paid to Both Agents|
|Alberta||7% for 1st $100K and 3% for the remaining balance||$403,163||$16,095|
|Ontario||5% of total price||$741,395||$37,070|
|B.C. (Greater Vancouver Area)||7% for 1st $100K and 2.5% for the remaining balance||$801,039||$24,526|
|Saskatchewan||6% for 1st $100K, 4% for the 2nd $100K, and 2% for the remaining balance||$403,163||$16,095|
|Manitoba||5% of the total price||$308,689||$15,434|
|Quebec||5% of the total price||$477,609||$23,880|
Ontario and British Columbia have some of the highest housing prices, which results in higher average total real estate commissions. Although British Columbia’s real estate commission rates are one of the lowest in the country, homeowners ultimately end up paying a comparatively higher real estate commission due to the higher average selling price of homes.
In Manitoba, some brokerages such as 3 Percent Realty offer as low as a 3% real estate commission. Unlike other provinces, there are very few real estate agents in Manitoba that offer flat-fee services.
While the majority of real estate agents charge the standard 4-5% commission, you can often get a lower rate by finding a local real estate agent and contacting them about their commission rates. All real estate agent commissions are negotiable and the contract is signed based on the rate that you and your agent agree on. The Manitoba Real Estate Association follows the Canadian Real Estate Association (CREA) Pledge of Competitionthat states that each real estate agent has the flexibility to set their commission rates based on the services they provide to their clients.
Historically, when real estate prices were lower in Manitoba, real estate agents charged up to 7% total commission. Because the selling prices of the homes were lower, real estate agents charged a higher percentage to earn enough to make a living. As the real estate prices in Manitoba increased over time, the real estate commission percentage rate decreased as agents were able to earn a living with a lower percentage rate.
In addition to the real estate agent commission, the cost of selling a housee includes legal and lawyer fees, and sales taxes on the real estate agent commission. In Manitoba, real estate commissions are exempt from the Manitoba provincial RST (Retail Sales Tax), so you are only required to pay the federal GST of 5%. If you are a buyer, you should consider the closing costs, which include land transfer taxes, property inspection fees, and lawyer fees. The closing costs can amount to approximately 3-4% of your property’s purchase price.