There has been alot of talk about the increase in the Realty
Transfer Fee that home owners will have to pay when selling their
home. This fee has been in existence since 1968 and is
collected by the State of New Jersey when the home is sold and is
part of the overall closing costs. The change to this fee
that has some people in an uproar, is that now municipalities
can also add a percentage to the fee, which they can add to
the town's income. Is this GOOD or BAD, when you are selling
a home? Here are some of the facts and then YOU BE THE
JUDGE!
The Realty Transfer Fee is NOT a TAX, but a FEE, and
therefore is NOT TAX DEDUCTABLE. How much of a fee is paid
depends on the selling price of a home. If a home sold for
$350,000, then the RTF would be $2,105. If the new added fee
for municipalities goes into effect, the RTF would increase by
$350, thus the total amount would be $2,455. The difference
between $2,105 and the $2,455 is an increase of 17 Percent.
The question I have for everyone about this is, WOULD THIS INCREASE
STOP YOU FROM BUYING OR SELLING A HOME?
Some of the examples I have seen in print causes me to say "That
is not a good reason". It has been suggested that Seniors who
are selling their home and who are planning from the proceeds, to
put some away for retirement, take a trip to Europe and give some
to their children, would no longer be able to take that trip to
Europe! I myself think that statement is little too far
fetched. I would go on that trip and leave less to my
children LOL.
Another example was that a couple living in a condo, looking to
own a single family home at a higher price would not be able to
afford the larger home due to this increase. Now, I do not
know how buying a $350,000 home with this increase of $350 makes or
breaks someone, except that they should never buy that home in the
first place, because they must be totally extended financally.
The main reason I see for fighting this increase is that it DOES
INCREASE OUR COSTS AS HOME OWNERS! If municipalities want a piece
of this pie, then they should stabilize or decrease our municipal
property taxes. We should be asking, WHAT WILL THE MUNICIPALITY USE
THESE NEW FUNDS FOR?
Have an opinion? Please let us know.
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