Buying a home on Martha’s Vineyard comes with the usual costs: a down payment, a mortgage, title insurance, and attorney’s fees. The island adds a few of its own, and the largest is the Martha’s Vineyard Land Bank fee. Here is what each one is, when it comes up, and who to ask about it.
What is the Martha’s Vineyard Land Bank fee?
The Martha’s Vineyard Land Bank fee is a 2% charge on most real estate transfers on the island, and the buyer pays it at closing (Land Bank form, MV Times, 2021). The money funds the Martha’s Vineyard Land Bank, a public agency that voters created in 1986 to buy and protect conservation land. It has conserved thousands of acres of beaches, trails, and open land since then (Land Bank annual report, MV Times, 2011).
On a $1.5 million purchase, 2% is $30,000. Build it into your budget from the first conversation with your lender, not the week before closing.
Can you get an exemption from the Land Bank fee?
Some buyers can. First-time buyers can exclude part of the purchase price from the fee, up to a threshold the Land Bank sets each year, and the exemption comes with conditions (MV Times, 2021, Land Bank form). Other kinds of transfers have their own exemptions. Ask your attorney early whether one applies to you, and check the current threshold with the Land Bank before you count on it.
When is a septic inspection required?
Most homes on the island use a private septic system rather than town sewer, and Massachusetts regulates them under a state code called Title 5. A Title 5 inspection is generally required within two years before a sale, or within six months after it if weather prevents an inspection at the time (Mass.gov, Mashpee Board of Health).
If a system fails, it may need repairs or a full replacement, which can be a major expense. Who pays is part of the negotiation, so ask early whether the seller has a recent report and read it closely. Some areas near the island’s ponds have extra septic rules to protect the water, so ask the town’s board of health what applies to the property you’re considering.
Should you test a private well?
Yes. Many homes outside the town centers draw water from a private well. Your lender may require a water test, and it’s worth doing even if they don’t. A standard test checks for bacteria, nitrates, and other common issues. Ask about the well’s age, depth, and flow rate, too.
How do flood zones affect the cost?
Waterfront and low-lying homes may sit in a FEMA flood zone, which can mean required flood insurance if you have a mortgage. Premiums vary widely with the home’s elevation and location, so get a quote before you make an offer, not after. Our guide to waterfront due diligence goes into more detail. Wind and storm exposure also affect homeowner’s insurance, so ask a couple of insurers for quotes early.
What can you build or change after you buy?
Local rules can limit what you add or change, and they are worth checking before you buy, not after:
- Historic districts, like Edgartown village, review exterior changes.
- The Conservation Commission, the town board that oversees wetlands, reviews work near ponds, marshes, and the shore.
- Districts of Critical Planning Concern set extra rules in some areas.
- The Martha’s Vineyard Commission, the island’s regional planning agency, reviews larger projects.
If you plan to expand, add a guest house, or build a pool, ask your agent and attorney to check what’s allowed first. You can browse homes for sale across the island to see what’s on the market in each town.
What other costs should you plan for?
- Massachusetts deed excise: $4.56 per $1,000 of the price outside Barnstable County, so it applies on the island. The seller customarily pays it, though it can be negotiated (Mass.gov directive, Mass Real Estate Law Blog).
- Property taxes: Edgartown and Chilmark have some of the lowest residential tax rates in Massachusetts, though assessed values are high (BMN Boston, Patch). Tisbury, Oak Bluffs, and West Tisbury also offer a residential exemption that lowers the bill for owners who make the home their primary residence (MV Times, 2025, Vineyard Gazette, 2025). Check the current rate with the town assessor.
- Caretaker and property management: many second-home owners pay someone to check on the house through the winter.
- Getting here: car ferry reservations add up if you’ll be back and forth often.
Ready to run the numbers?
Our agents walk buyers through each of these costs and can recommend local attorneys, inspectors, and insurers. When you’re ready, talk it through with one of our agents.