Real Estate Sales Commissions

Leveraging, renting vs owning, making an investment or buying a home?
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fundamental
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Real Estate Sales Commissions

Post by fundamental » 26 Oct 2016 09:25

I'm selling my GTA home and noticed my P&S indicates I pay 2.5% + HST to the listing agent and another 2.5% + HST to the selling agent.

I thought HST only applied to new home sales, not my resale home. Am I mistaken ?
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SQRT
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Re: Real Estate Sales Commissions

Post by SQRT » 26 Oct 2016 09:41

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Spudd
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Re: Real Estate Sales Commissions

Post by Spudd » 26 Oct 2016 10:09

The HST is on the realtor's services, not on the price of the home itself. You're right that no HST will be payable on the home. But you have to pay it for the realtor services.

fundamental
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Re: Real Estate Sales Commissions

Post by fundamental » 26 Oct 2016 10:17

For clarity, by "realtor services", you mean the 5% realtor commission on the sale price ?
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rishitibriwal
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Re: Real Estate Sales Commissions

Post by rishitibriwal » 26 Oct 2016 10:20

That is correct. You pay the HST on the 5% commission.

fundamental
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Re: Real Estate Sales Commissions

Post by fundamental » 26 Oct 2016 13:32

rishitibriwal wrote:That is correct. You pay the HST on the 5% commission.
Thanks
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Pitboard
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Re: Real Estate Sales Commissions

Post by Pitboard » 27 Oct 2016 18:29

The real crime is the 5% paid to these bandits. Especially in this market.
Under price the home just a little. Tons of people view the home and are told that offers will only be accepted next Tuesday. They take the top 4 or 5 best offers and tell them to now give there best offer. Usually much higher offers and waving most if not all conditions.
From sign going up to getting the accepted deal is about 10 days.
50k for a million dollar sale in our area is a little rich me thinks for 15 days if you can call it work.
We need Amazon in this game. They seem to be able to drive pricing to the bottom. :rofl:

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