Many high-end Hamptons homeowners are rushing to sell their homes before an expected increase in tax rates at the end of the year, according to a New York Daily News article.
With capital gains taxes expected to rise 5 percent on long-term investments and rates expected to jump much higher on short-term investments, some sellers believe that cutting prices on their home now to lure eager buyers is the right way to go.
"Real Housewives of New York" star Kelly Bensimon recently chopped the price of her East Hampton home from $12 million to less than half, The Daily News reported earlier this week. It sold for $5.75 million.
The debate over the country's debt ceiling, or the "fiscal cliff," has thrown even more uncertainty into the conversation, as higher income tax rates on the rich remain a possibility in the future.
“They know they lose money if they wait till next year,” one broker told the Daily News.
Do you plan on dropping the price of your home to hope it sells before the end of the year? Are you a buyer taking out funds to purchase a home before Jan. 1? Let us know in the comments.