On Long Island, crossing the $1,000,000 price point triggers a one percent New York State mansion tax paid by the buyer. That means a $10,000 tax bill appears instantly at closing.
A home listed at $999,999 carries no tax. A home listed one dollar higher does. That difference dramatically changes buyer behavior in Nassau and Suffolk County markets.
Buyers near the threshold often cap their searches to preserve liquidity. Sellers who price above it without a strategy shrink their buyer pool overnight. Smart pricing considers psychology, not just square footage.
Sometimes listing just under the threshold creates competition that pushes value naturally. Other times negotiating concessions offsets buyer hesitation. Ignoring the tax is not confidence. It is risk.
