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!