Then this post will tell you how to potentially save a few thousand dollars in closing costs. Beginning January 1, 2008, the grantor's tax (charged to the seller) will increase from $1 to $5 per $1000 in value (so on a $500,000 home, the seller will pay $2500 to the state, rather than $500.
The localities affected by the increase are: the City of Alexandria, Arlington County, City of Falls Church, City of Fairfax, Fairfax County (including the Towns of Clifton, Herndon and Vienna), Loudoun County, City of Manassas, City of Manassas Park, and Prince William County.
So sellers, push for a 2007 closing. And if you're a buyer who is indifferent about when to settle, offer to settle in December and ask for half of that savings back as a closing cost credit - it's win-win!
Thanks to Marcus Simon at MBH for this reminder!
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2 comments:
Don't forget that the Courthouse will be closed a lot this December as well. Christmas and New Year's day both fall on a Tuesday, so all the Clerk's office employees will be taking two 4-day weekends. The last day to settle and have your Deed recorded in 2007 is December 27th.
Thanks Katie!!
Similar news for Montgomery County MD buyers and sellers:
Another good reason to buy now and not later. Montgomery County, MD just approved a recordation tax increase on property sales OVER 500,000. The tax will be an additional 3.10 per 1,000. The tax is presently 6.90 per thousand; so for consideration over 500K it will now be 10.00 per 1,000. Anyone waiting until spring to buy might want to get an early jump to avoid this tax. This is effective for all closings and recordings from March 1, 2008 forward.
NOTE: There is no increase to transactions with a purchase price under 500,000.
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