Frequently Asked Questions
What Is Pre-approval?
When you have already been interviewed by a loan officer of your bank or financial institution and qualified as per their requirements for a specified sum of money the bank will lend you to purchase a property
Is Renting or Buying Better?
A rental arrangement is ideal when you are still developing your self-growth, career, education and building resources. However keep in mind this is best for a short term goal.
Buying or investing into real property is the goal you need to aim for in the long term because you are building Equity.
What Is the Lender's Formula?
A Lender or Financial Institution very basic common sense formula is to review your Income, less your Expenses to determine what level of debt and pressure you can comfortably service.
What Do I Look for in Homes?
Rule number One, Location, Location, Location
Consider, Features, Benefits and Resale potential
Do I Need a Home Warranty?
Also known as Insurance for Content of items in your home should they be damaged, lost, or stolen.
This would complement your homeowners insurance by offering coverage to content otherwise not protected.
In reality when faced with this question, the main consideration is “can I afford it”
or “can I afford not to have one”
Ideally every homeowner should have one.
What Should I Expect at Closing?
The process of buying a property entails a negotiation process, once you (the Buyer) have identified the property, an Offer to Purchase is presented on your behalf (by the Realtor) if the Offer is accepted An Agreement is entered into between Buyer and Seller with a usual 10% deposit of the total sale price.
This Agreement will include an agreed date for the Closing., i.e., 60 or 90 days from signing of the Agreement.
This deposit is placed in escrow with the Seller’s Attorney.
The Seller’s Attorney is responsible for the careful review of the Title Deed Documents of the property, who at the conclusion of the review, writes an opinion on the validity of the Title Deed transferring Title from owner selling to the new owner buying.
At Closing the balance of the sale price must be paid in full.
At closing you must receive vacant possession of the property as per the Agreement.
At Closing you also receive the Title Deed Documents in original form.
A Sales Agreement will include all the clauses pertaining to the Terms and Conditions of the transaction.
what should i offer?
You should be open to discuss this point with your Realtor because he/she should know well the property and its owner, and how negotiable is the asking price.
The Realtor would also be aware if there are any offers on the table.
It is said that the buyer makes the profit at purchase.
What About Hurricane Insurance?
A homeowner in The Bahamas will be more hard pressed to buy an insurance policy with hurricane coverage, simply because of its geographical location in the Atlantic Ocean, and with due consideration to the frequency of storms traveling the area in recent years.
Homeowners with oceanfront or canal properties would be well advised to have such policy in place.
There are several companies available in Nassau offering this type of policy.
Can I Ask You for Advice?
email me all your questions along with all your contact information.
I will do my best to answer you quickly
IS THERE OTHER IMPORTANT INFORMATION GOOD TO KNOW, ABOUT INVESTING IN THE BAHAMAS?
A Bahamas Government stamp tax is charged on all real estate sales or transfers.
Governed by the Stamp Tax Act, this tax is split between the buyer and the seller unless
otherwise specified or agreed to by both parties. The amount of the tax varies as follows:
- Up to and including $20,000 – 2%
• $20,000.01 to $50,000 – 4%
• $50,000.01 to $100,000 – 6%
• $100,000.01 to $250,000 – 8%
• $250,000.01 and over – 12%
Real estate commissions as established by the Bahamas Real Estate Association are as
• Undeveloped land – 10%
• Developed property (homes, condos) – 6%
Bahamas Bar Association legal fees in respect of the sale and purchase of real estate and
the scale fees are:
• 2 ½ % of sale price
Other costs related to investing in real estate that may apply is the conversion of USDollar currency to Bahamian Dollar almost at par.
Appraisal Report Fees – When the property owner or potential Buyer considers engaging the services of a Licensed Bahamas Real Estate Association Appraiser. The Fee can vary as per type of property to be appraised. This can be determined prior to requesting an Appraisal Report.