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Things to Consider

In The Barbados Real Estate Industry

Our Advice To You #1

Property Valuations

When acquiring real estate in Barbados, obtaining a detailed property valuation is essential to understand the true worth of a property. At Jeff Realty, we simplify the process, ensuring a seamless experience while helping you determine the property’s value for insurance purposes, securing a mortgage, or aligning the sales price with its market value. Valuations serve various needs, from establishing insurance replacement values to assessing fair market prices for buying or selling. Our expert valuers begin by understanding your specific requirements and requesting key documents, such as the latest land tax bill, surveyor’s plot plan, architectural drawings, and any prior valuations.

Once all necessary documents are received, we conduct a thorough site visit to assess the property’s features, finishes, and surrounding landscape. Our analysis incorporates standard valuation approaches, including ‘Fair Market Value,’ ‘Replacement Cost,’ and, where applicable, ‘Income Capitalization.’ For commercial properties, rental income analysis and financial statements are used to calculate ROI and potential returns. The process concludes with a comprehensive Valuation Report detailing the property’s structure, finishes, and external features, supported by comparable data to ensure accuracy. All valuations are conducted by BEAVA-accredited valuers, adhering to the highest standards.

Our Advice To You #2

Barbados Real Estate Sale & Purchase

Purchasing Real Estate
With guidance from our professional team at Jeff Realty, the real estate purchase process in Barbados is straightforward and efficient. Once you’ve chosen your ideal property, the first step is submitting an Offer and Acceptance form, signed by both buyer and seller to confirm the price and terms. Next, attorneys for both parties are appointed to facilitate the exchange of contracts. Upon approval of the terms, the buyer provides a 10% deposit, with the remaining 90% paid before conveyance. Sales typically take up to 6 months to finalize, depending on the availability of required documentation.
 

Selling Real Estate
At Jeff Realty, we offer expert guidance to property owners looking to sell real estate in Barbados. Our agents ensure your property is widely marketed through multiple channels, including partner agencies, for maximum exposure. Sellers can expedite the process by preparing key documents, such as:

  • Current Land Tax Notice and proof of payment
  • Title Deeds and Plot Plan
  • Recent utility bills (water and electricity)
  • Town and Country Planning permissions (if applicable)
  • Insurance Policy and Inventory of included items
  • Certificate of Compliance and proof of foreign investment registration (if applicable).
Our Advice To You #3

Real Estate Purchasing & Ownership Fees In Barbados

Real Estate Transaction Costs in Barbados

Understanding the fees involved in real estate transactions is crucial for buyers and sellers. Here’s a quick guide:

Buyer’s Costs:

  • Attorney Fees: 2.5% + 17.5% VAT
  • Stamp Duty: 1%
  • Land Tax: Proportionate and split with the seller

Seller’s Costs:

  • Real Estate Agency Fee: 5% + 17.5% VAT
  • Transfer Tax:
    • Unimproved Properties: 2.5%
    • Improved Properties: 2.5% on amounts over $75,000 USD
  • Attorney Fees: 2.5% + 17.5% VAT
  • Land Tax: Proportionate and split with the buyer

Additional Considerations:

  • For land purchases, buyers should consider test hole digging to assess the lot, organized with the owner at the buyer’s cost.
  • Annual property costs, like utilities (electricity, water, internet, TV), are arranged by the new owner through local providers such as FLOW, Digicel, and Barbados Light and Power.

Land Tax Rates:

  • Unimproved Residential Lots:
    • Below 4,000 sq. ft.: 0.8%
    • Above 4,000 sq. ft.: 1.0%
  • Improved Residential Properties:
    • $75,000 – $225,000 USD: 0.1%
    • $225,000 – $425,000 USD: 0.7%
    • Above $425,000 USD: 1.0%
      Rebates are available for pensioners, agricultural lots, and registered vacation properties via the Barbados Revenue Authority.

Property Insurance:
This varies by property. Detailed valuations are recommended to determine replacement costs, with optional add-ons like contents and liability insurance.

Other Potential Fees:

  • Condominium/Homeowners Fees
  • Pool Maintenance
  • Landscaping
  • Property Management
Our Advice To You #4

Mortgages

Financing Real Estate in Barbados

For non-cash buyers, it’s essential to consult your preferred financial institution to determine your loan approval amount before starting your property search. Major banks in Barbados include CIBC FirstCaribbean, RBC Royal Bank, and Scotiabank, along with independent lenders and credit unions such as SigniaGlobe, Fortress, and the Barbados Co-Operative Credit Union.

For Barbadian Residents:

  • Financing: Up to 90% (sometimes 100% in specific developments)
  • Loan Terms:
    • Land-only purchases: Up to 15 years
    • Homes or house-and-land packages: Up to 30 years

For Non-Nationals:

  • Financing: Up to 70% of the purchase price
  • Loan Terms: Typically capped at 15 years

Interest rates (fixed or variable), closing costs, legal fees, and loan amortization periods vary by institution and are tailored to each client. At Jeff Realty, we collaborate with banks and lenders to guide you through the financing and purchasing process. Let us help you navigate the steps to secure your dream property.

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