[wan23]

You're comparing the wrong numbers. The question is what 1% of the purchase price does to the amount you need for your down payment and fees. On a 10% down payment an extra 1% increases the amount you need by 10%. Remember that while a million dollar home sounds extravagant, it's first time buyers who often have just barely enough who are trying to buy these.

[rootusrootus]

> On a 10% down payment an extra 1% increases the amount you need by 10%

Because you are not allowed to roll that tax into the loan?

[saulpw]

That seems to be the case, though there are other tricks (like raising the sale price and getting the seller to pay the tax).