Selling without a real estate agent
Selling a property in Barbados without a real estate agent can be a successful but the seller has to be ready to invest time and some financial resources.
Traditionally owners selling their property is not advised due to the fact that owners can be emotionally invested in selling the property and this can lead to the absence of objectivity which is needed for the sale.
This is not to mention that in Barbados with such a thriving real estate market, some sellers have become fixated on a specific price for their sale which is Fair Market Value and furthermore out of their reach and they refuse to change it when their property simply does not sell.
Moreover with a owner selling a property independently, they are operating without the benefit of enhanced knowledge of the industry at that point of selling. But nonetheless, a successful sale is possible. But the seller should divorce his/her emotions from the transaction and embrace objectivity and education on how the market is performing at the time.
In selling the property on your own, you will have a number of responsibilities. Among others you will have to put the For Sale sign on your property, take phone calls and schedule appointments for prospective buyers to see the property, buy classified ads, and conduct negotiations–all on your own.
In addition to those responisbilities, the owner should seek to gain as much information as possible about comparable properties that have been for sale recently. In Barbados this can be a little difficult as information on sale prices can be hard to come by, but the seller can still use listing prices of comparable properties to assist in determining a suitable price point. Independent sellers can also consider conferring with a real estate executive to get their understanding of the market and how sales are going.
In Barbados selling a residential, commercial or investment property can be made easier with the use of real estate agents but independent sellers can use the newspapers and other public media to list their property for sale, not to mention doing signage on the property as well.
In selling the property independently the owner would avoid paying the real estate agent a commission from the sale.
The following points could be useful in assisting you to sell your property:
- Research what other houses in your area have sold for in the last few of years to determine a reasonable asking price. Before you set the asking price, take into account closing fees, other selling expenses, and the amount of cash you want after the sale. Your home will sell faster if it is priced appropriately.
- It would helpful in the sale to prepare a professional-looking letter-size fact sheet that contains a fullcolor photo of the house, the asking price, a list of features and amenities, utilities figures, property taxes and your contact information.
- Get the word out. Pass out fact sheets to local real estate agents. Place an ad in the real estate section of your local newspapers. Put up signs advertising your property for sale on your the property. Post fliers describing the house in public areas.
- Even though a real estate agent is not a necessity in selling a property, a registered attorney is. One who specialises or is familiar with real estate law in Barbados would be the best suited for your needs.
Fees for sellers of property in Barbados include:
Property Transfer Tax - If land only – 2.5% of the Purchase Price
If house and land – first $125,000 exempt, 2.5% on the excess
Stamp Duty- 1% of the Purchase Price
Land Tax - This amount will vary depending on the value of the property and the time of the transaction
Land Surveyor’s fee- Approximately BDS$1,500.00 _
Real Estate Commission – Normally 5% of the Purchase Price (plus 15% VAT)
Out-of-Pocket Expenses – $300 (Approximately)
Legal Fees are legislated as follows-
1. Up to $25,000 – $750_
2. On the next $75,000 – 2%
3. On the next $100,000 – 1.5%
4. On the next $300,000 – 1.25%
5. Thereafter – 1%
VAT of 15% is payable on legal fees