Did you know that first time homebuyers receive an exemption from part of the Land Bank fee?
If you have purchased or are thinking of purchasing a home on Martha's Vineyard, you likely know about the Martha's Vineyard Land Bank Fee. 2% of your purchase price is collected at closing and the proceeds from this assessment are put towards conserving some 3900 acres of land on Martha's Vineyard. This fee is the buyer's obligation to pay.
Land Bank properties are reserved for wildlife, agriculture, hunting, hiking, and other types of conservation. It's a mix of Environmental protection and public use.
Over the years the exemption amount for first-time home buyers has increased and today it stands at $800,000. Meaning that if you are a first-time home buyer and you were to purchase a home for $1,200,000, you would only pay the 2% Land Bank fee on the amount over $800,000. So, that would mean paying 2% on $400,000. Quite a difference from paying 2% on the entire $1,200,000.
The Martha's Vineyard Land Bank is an important part of the Vineyard and helps to preserve the island. So many people come to find solace in the areas managed by the MV Land Bank. The Land Bank also cooperates with The Trustees of Reservation and Sheriff's Meadow to create a connected trail system whenever possible. If you're interested in knowing about all the trails on the Vineyard, you may want to get the TrailsMV App.
This new exemption amount is a huge increase from years past and really helps those trying to get into their first home on Martha's Vineyard. The average starter home is around $1,000,000, as of January of 2023.
Interested in knowing more about the Buying process on Martha's Vineyard, learn more here and request a copy of our free Martha's Vineyard Buyer's Guide.
