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Mr Zimmerman was helpful and kind and prompt . He always answers his phone and that is refreshing . I will be using him for my bankruptcy in the future. He is one of the good ones . He is an outstanding attorney who truley care . He made ev...
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Mr. Zimmermann is a fantastic bankruptcy attorney who handled my case with care, efficiency and urgency. We were able to beat a judgement against me in the nick of time, and I truly feel a sense of relief due to the services of Mr. Zimmerma...
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This Lawyer will go above and beyond for you. As well as show tremendous empathy for those who are vulnerable and scared. His compassion to help civilian's shows through his actions and with his word. When he says he is going to call he cal...
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I’ve worked with Mr.Zimmerman on two different legal issues. In both instances he was fantastic! He is extremely knowledgeable and compassionate and able to breakdown a course of action into language anyone can understand. I would highly re...
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I highly recommend Mr. Zimmermann as an attorny. I recently purchased an investment property and boy was he helpful. He was easily available, very clear in explaining various concepts, laws and regulations, and provided very helpful tips o...
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- posted: Dec. 07, 2024
In 2004, the State of New Jersey sought to generate more revenue by imposing an additional 1 percent tax on residential real estate sales where the property was bought for $1 million or more. This amount, paid by the purchaser, is levied in addition to the standard 1 percent realty transfer fee usually applied to these transactions regardless of price.
Since it was enacted, this extra amount has been referred to as the state’s “mansion tax.” While this nickname might have been somewhat accurate 20 years ago when an average home in the state was worth less than $350,000, home prices have risen drastically since then. Now in many North Jersey communities, seven-figure residential real estate sales are the norm for well-kept properties in good neighborhoods. Accordingly, more buyers and sellers than ever before must approach contract terms with this tax in mind, even if no one would ever confuse the residence with the Biltmore Estate or Wayne Manor.
As the party responsible for paying the realty transfer fee at closing, buyers should understand that if they settle on a price over $1 million, that they’ll need to add at least $10,000 to the total they provide. This additional expense can strain budgets and complicate financing, particularly for first-time buyers or those who are stretching to afford a home in a competitive market.
Sellers should also understand that the existence of the additional tax can make properties priced just over $1 million less attractive to potential buyers. In some cases, sellers may lower their asking prices slightly to avoid crossing the $1 million threshold and triggering the tax. Parties might also negotiate regarding requested home repairs or other items to reach an agreement while keeping the price within six figures. You might also consider negotiating responsibility for the mansion tax into the contract.
It's possible that the substantial upward shift in the state’s residential real estate prices will spur lawmakers to revise or eliminate the mansion tax. For now, however, you should speak with a qualified attorney if you’re involved in a transaction where the additional cost might come into play.
The Law Offices of James C. Zimmermann handles real estate negotiations and closings for home buyers and sellers throughout North Jersey. You can make an appointment for a meeting in Vernon, Wayne, Pompton Lakes, Hackensack or Nutley by calling 973-764-1633 or contacting us online.
