But I'm sure not at the general sales tax rate that other sales are subject too. They probably have some sort of 'transfer' tax.
Yes, but only at the excise tax rate (just under 2%) rather than the more onerous sales tax rate of nearly 8% (depending on where you are). Still, a million dollar home would result in nearly $20,000 in tax, however, the tax is customarily paid by the seller in real estate transactions. Also, no state income tax here, this winner would only have the federal income tax burden to worry about.
Still, if the home was really worth a million dollars, and it took half a million to pay the state and federal income taxes, I cannot imagine a lender not being willing to lend 50% of the home's value, no matter what the ability of the borrower to repay. The payments would be pretty steep, but chances are good that the home could be rented out for a period of years, until the winner's income caught up to the ability to make the payments. Just depreciating a house that expensive would generate some tax breaks to offset some ordinary income. This winner needs to see a good CPA.
and the seller normally pays. I took quite a beating when I sold my home in Vancouver, Washington last year. Fortunately, I sold just before the market dived, or it would have been even worse.