Realtors oppose real estate transfer tax

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Source: Frederick News Post
Author: Michael Kurtianyk
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Date Published: 11/20/2013

We read with interest Saturday’s editorial (“Underrepresented on growth”), and we want to make clear that the Frederick County Association of Realtors opposes a real estate transfer tax because it would hurt homebuyers and sellers of existing homes — as well as buyers of new homes. In a typical transaction involving existing real estate, the buyer and the seller split the cost of a transfer tax. In a new-home sales contract, the buyer typically shoulders the full cost of a transfer tax. However, impact fees, like all construction costs, are reflected in the sales price of the home. Thus, they are financed through the buyer’s mortgage over years or decades. A transfer tax is due as cash at property closing, and in this fragile home market, both buyers and sellers would be greatly affected.