We like to educate our buyers and make sure they know all the expenses prior to their purchase so they can plan ahead.
Our buyers always ask us... WHAT IS MANSION TAX, especially when they are looking into purchase over $1,000,000.00.
Mansion tax was created in 1989, this allows New York State to collect a 1% tax from buyers who purchase a one, two or three family home or an individual condominium or cooperative unit for $1 million or more. It was created when the average price of a New York City condo apartment was far less than the $1.3 million mark today. If this Mansion Tax limit is adjusted based on the inflation, the sales price will most likely be about $1,700,000 today.
While $1 million can maybe buy you a mansion in another state or city, the going price of decent renovated one bedroom Manhattan New York condominium is about $850,000 in today's market, and two bedroom condominium is about $1.3 million or more depending on each building's location, condition, amenities, exposures and other considering factors. In Manhattan New York, $1 million can hardly buy you a mansion.
Working with buyers who are looking around $1 million range on the regular basis, it is important to advise the buyers the different closing cost when they make offers... dashing off to the other side of the zero can be more than just what they think!!!
Does your state have mansion tax? Or any unique closing cost that buyers should know?
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Eileen Hsu 許雅嵐 (email: EHSU(@)elliman.com)
We specialize in Manhattan New York Condominiums, townhouses, condops and cooperatives. We are condominium residents ourselves so we understand the Manhattan New York condominium community. We also enjoy all Manhattan neighborhoods, especially Upper West Side, Lincoln Square, Midtown East, Murray Hill, Financial District, Chelsea, Fifth Avenue, Greenwich Village, Nolita and etc just to name a few. If you or you know someone that may be interested in selling, buying or leasing their Manhattan New York condo, call us today (917)837-8869 or (646)644-6929 and we can discuss your specific Real Estate needs in private. Thank you.
To read more about Manhattan New York Real Estate, click on our websites below:
Manhattan New York Condo Specialists or Chinese Speaking Real Estate Agent
