What is NYC’s Mansion Tax? https://www.hauseit.com/nyc-mansion-tax/
The New York City mansion tax is one of the largest closing costs for home buyers in NYC. Fortunately, you can avoid paying the mansion tax by requesting a New York City buyer agent commission rebate on your purchase.
What are NYC Buyer Closing Costs? https://www.hauseit.com/closing-costs-nyc/
What is the NYC mansion tax?
The mansion tax is a 1% tax on the purchase price of residential real property valued above $1 million in New York City. It’s customarily paid by the buyer.
The New York City mansion tax was enacted in 1989, and it has never been adjusted for inflation. With this in mind, it’s easy to understand why the mansion tax is one of the most controversial taxes in New York.
How can I avoid paying the mansion tax in New York City?
The easiest way to avoid the mansion tax when buying a property in NYC is to request a buyer broker commission rebate. The typical buyer agent commission rebate in NYC can save you $20,000 or more on your purchase. These savings can fully offset your mansion tax bill.
Request a NYC Buyer Agent Commission Rebate: https://www.hauseit.com/nyc-broker-commission-rebate/
Real estate commission rebates work in New York City because sellers usually agree to pay the same total commission regardless of whether you as the buyer are working with a buyer’s agent.
By representing you on the purchase, a buyer’s agent collects half of the total 6% average NYC real estate commission which would otherwise go to the listing agent. Your buyer’s agent is then able to offer you an automatic discount on the purchase by sharing a portion of this commission with you in the form of a cash rebate at closing.
How Do I Get a Buyer Agent Commission Rebate in NYC? https://www.hauseit.com/how-do-i-get-a-buyer-agent-rebate-in-nyc/
Does the mansion tax apply to the purchase of new construction?
If you as the buyer agree to pay some or all of the city and state transfer taxes, sponsor legal fees and broker commission on the deal, then these expenses will be added to your purchase price for the purposes of calculating the mansion tax bill.
NYC Mansion Tax FAQ: https://www.hauseit.com/nyc-mansion-tax/