07/13/2023
If states wanted to truly promote homeownership, espeically 1st time buyers then they should waive the very high transfer and recordation taxes that are a real barrier to home ownership. Using the median sales price in MD according to Zillow the cost to a 1st time buyer from the state is $3,389.51. If not a 1st time buyer the state charges buyers $4,403.42. Note they ALSO charge this to the seller. So the state adds up to $8,806.84 for the cost of a home. My proposal would be for the state to waive that portion for 1st time buyers until the sale of their home at a future date. It would be a real boost for 1st time buyers and make Maryland a much more attractive locale compared to DC and Virginia. The state would still get their money but it would be deferred until the sale. As a lessor note I never thought the state should charge a tax to buy and sell a home, what service does the state provide when private parties engage in a transaction? There is zero benefit provided by the state and zero work performed by the state as a result of the home sale.
