How is Your Arithmetic?

Think you are a math Wiz? So answer this.....what is the difference between a $1M property and one that costs $999,000? If your answer was $1 you are wrong.

NYC has something called a Mansion Tax. When a property hits the Million dollar mark a tax of 1% of the purchase price kicks in and so in the equation above the answer is actually $10,001.

Now if this was anyplace else in the world buyers spending a million dollars or more would simply pay the tax. But, this is NYC and everyone is looking for a deal. Here a few ways to avoid the mansion tax...

• If its a sponsor unit make your offer contingent on the seller paying the tax
• Have the seller lower the contract price below $1 M but then have a separate rider whereby he sells you the appliances for the difference.
• If there are brokers involved have them lower their fee to a small degree and then the seller lowers his price by that amount.

These are just a few ideas, your real estate attorney will be able to tell you more...