Are you looking to sell your property in Barbados? If yes, you will be pleased to know that the Barbados real estate market is quite active at the moment. We're receiving lots of inquiries from both locals and foreign buyers, with a few successful closings. This blog post serves to assist you through the sale process, from hiring the right real estate agent to closing the deal.
HAVE ALL OF YOUR PROPERTY OWNERSHIP DOCUMENTS
For properties to be sold in Barbados, the title, ownership, rights, and interests are transferred from the seller to the new owner via a Deed of Conveyance. Without this document, there is no sale. The transfer must be facilitated by two Barbados attorneys, one representing the seller and the other representing the buyer.
Other documents to carry out the sale include:
· Recent Land Tax Bill
· Plot Plan
· Updated Utility Bills
HIRE THE RIGHT REAL ESTATE AGENT FOR YOUR PROPERTY
Hiring the right listing broker could make the selling process run smoothly for you, closing the deal in no time. If you make the wrong choice with your agent, it may cause a significant delay, where your property stays quiet on the market for too long and becomes ‘stale’. Make adequate research to ensure that the agent has the qualifications and marketing power that you need for your property. Can they help you reach out to your target audience to get the best possible offer?
It is best to consider an agent that has an impressive online presence. Look out for a real estate company with a website, which should be easy to use and up-to-date. A listing broker with a massive social media following will go a long way in reaching a multitude of potential buyer. Also, your agent can make use of multi-listing websites to generate more traffic to your property listing. If your property has an appeal to the foreign market, choose a real estate company that has an international reach. Enquire whether overseas ads are being run by the agent. Make extensive research on your agent or brokerage company before hiring them. Sale signs and banners are just as important as online marketing because not everyone is internet savvy.
It is best to hire an agent who is a member of The Barbados Estate Agents and Valuers Association (BEAVA). BEAVA gives you a marketing edge because your property would be accessible by other real estate agents in the association. With over one hundred and twenty members, your property would have a high chance of getting sold fast.
Real estate agents' commission fee for selling property in Barbados is 5% plus VAT, this fee is subject to VAT if the agent is VAT registered.
We, at Global Estate Agency have been in the real estate brokerage business for over 15 years. Our clientele includes both local and foreign buyers who purchase properties in Barbados. From our modern and user-friendly website to our impressive social media following. We also have international reach via our marketing mediums in Europe, Canada, the USA, and more. Our brokerage is led by Junior Sparks, who appeared on not one, but two episodes of HGTV's popular top tv show, House Hunters International!
WHAT DOES THE LISTING PROCESS IN BARBADOS ENTAIL?
Now that you've hired an agent, you need to book a listing appointment so that the agent could tour the property. This appointment is when you provide your agent with all the marketing details. You could go over the listing agreement while the agent takes notes, photographs, and videos of the property.
Once you agree with the terms in the contract. It's usually either an exclusive or non-exclusive listing agreement. An exclusive listing agreement is where you would list your property with one agent, and external agents will still have access to the listing, but all showings and negotiations must happen via your agent. The seller agrees to pay a commission to the agent once the property is sold. The non-exclusive listing agreement is where you could list your property with as many agents as you like. The latter option doesn't guarantee that your property would get sold faster. It means more work for you to keep track of all the agents' marketing, making sure that there is no misinformation about the marketing details.
SUBMISSION AND ACCEPTANCE OF OFFER
The dream is to get multiple offers or one solid offer that isn't below the list price. Your agent is in charge of confirming the means of payment. It could be all cash or through a lender, and if it's the latter, the buyer must be pre-qualified with a lender before submitting any offers.
After your agent has confirmed the above, the buyer has to complete a document called an Offer and Acceptance Form. This form entails the buyer's details, offer amount, source of funds, photo ID, etc. When this form is completed by the buyer, your agent will then send you the same copy to complete.
AGENT PREPARES THE ATTORNEYS INSTRUCTIONS
After the Offer and Acceptance Form is executed, your broker goes ahead to prepare and send out the attorneys’ instructions to the attorneys who are representing the buyer and seller. The attorneys’ instructions is a document called a Memorandum of Sale. This document entails the confirmation of the agreed sale price for the property, the address, the buyer's and seller's details with the attorneys' details representing each party. Now, the attorneys embark on the legal process execution of the transaction. Usually, it takes between three to six months to close a sale transaction, provided that there are no unforeseen complications. Asides from the commission fee, there are additional expenses to paying your real estate agent, including 1% stamp duty, 2.5% transfer tax, land surveyor fee, and attorneys fee. Each lawyer will provide the parties with a quote before embarking on the transaction.
As of April 2021, the VAT rate is set at 17.5%.
List your property with us for sale today via our Add Your Property page. Contact our office today at 246-426-9469 or send us a message via our Contact page above.