Hello everyone,
So I found out that when I purchase upgrades for the new home from the builder, the dollar amount of the upgrades will be added to the purchase price. However, we are going to pay for the upgrades out of pocket instead roll it in to the loan. Why would they still add the $ amount to the purchase price and I would be paying property tax for the door that I added. I understand upgrades may add value to the home, but it's never a 1:1 ratio. That's one argument I have heard. The other auguement is that since we are not paying sales tax, the IRS will collect it through property tax. This didn't happen to our last new home purchase with Cal Pac. Does anyone has any info on this?
So I found out that when I purchase upgrades for the new home from the builder, the dollar amount of the upgrades will be added to the purchase price. However, we are going to pay for the upgrades out of pocket instead roll it in to the loan. Why would they still add the $ amount to the purchase price and I would be paying property tax for the door that I added. I understand upgrades may add value to the home, but it's never a 1:1 ratio. That's one argument I have heard. The other auguement is that since we are not paying sales tax, the IRS will collect it through property tax. This didn't happen to our last new home purchase with Cal Pac. Does anyone has any info on this?