Good Lord, what next?  Does your state already do a transfer tax?  In PA, all real estate transactions have a 2% transfer tax, which is split 50/50 between the buyer and the seller...not just in high priced homes but all property.  This adds a significant chunk to the closing costs on both sides of the transaction.

Add to that the transfer fee that many home owner communities charge (often a years worth of dues, which could be over 1000.00)

 I suppose it's for a good cause but how many  more ways are the governing bodies going to find to get their greedy paws in the pockets of consumers?

As if real estate transactions aren't confusing enough, now you have to factor this in. I bet explaining this tax to clients poses a challenge.

Karen- Yes there is the regular transfer tax, this 2 percent tax I  make reference to applies just to the township of Red Hook.  Red Hook is about 90 miles from New York City a beautiful area with lots of open space.  This tax is intended to help preserve open space and up keep historical sites.  I brought the subject up because as a Realtor potential clients ask about it so I just wanted to lay the facts on the table. 

Rosario - It can be a challenge explaining this to a potential buyer, to them it just means having to come up with more money for closing.  Sellers are also not happy if they have to chip in.  In any case it is the law and this money has to be paid on amount over $330,000.  AS I mentioned the median sale price will change come June. 

This is interesting to hear about this added tax for your local market. Do you feel that this additional tax sometimes deter buyers from purchasing in that area?

Derrick - It has actually happened. However for some buyers the taxes is not a big deal.

Is this on top of a Transfer tax? oh I see that question answered.

In NH it is 15.00 per thousand split 50-50 by the buyer and seller. Which is one of the highest in the nation I think.

Jennifer, these Transfer Taxes are very unfair.  Only a portion of the community is paying for what everyone else gets to enjoy.  Purchasing a home is hard enough especially for first time homebuyers, taxes like this just makes that purchase even hard to achieve. 

We have a transfer tax in New Hampshire.  It is $15.00 per thousand -- it is customarily split 1/2 by the buyer and 1/2 by the seller.  There are always those who want to increase the tax for various reasons -- however, with the high property taxes we have in New Hampshire, we try to keep any increases from coming the way of the homeowner.

George- I see your point. In Red Hook the median price buys you a basic house and with credit tightening coming up with extra money could be a problem.

Joan - Taxes is just one of those things that you have to factor in, like it or not.  For relief many are heading south.

If one thing is assured in life, you will pay taxes. I believe in NJ it varies depending on the consideration. Between $200,000 - $350,000 it would cost $3.90 per $500.

Eugene- I agree that taxes is one of those things that will be constant, you will pay one way or another.