You are ready to sell your property, now what? First off it’s best to choose a real estate agent to assist you. The Barbados Estate Agents & Valuers Association offers a list of agents who are members and are bound to operate by a Code of Ethics. They are usually knowledgeable of market conditions and can guide you accordingly when it comes to how best you should list your property.
The standard fee charged by a real estate agent for selling property is 5%+17.5%VAT of the final sale price. This may vary slightly for a multi-unit development or a higher priced property. For rental property it is one month’s rent plus 17.5%VAT.
Once you have selected the agent that you would like to work with it’s best to sign a listing agreement, whether it be exclusive or non-exclusive, in order to get the ball rolling. If choosing a non-exclusive agreement and opting to go with multiple agents, it is best to ensure that all agents have the same information and same price.
The Seller will incur the following expenses:-
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 dependent on the value of the property at time of the transaction
Land Surveyor’s Fee – Approximately Bds$1500 but may vary
Real Estate Commission – 5%+17.5%VAT
Legal Fees – 1-3% on a sliding scale
Out-of-Pocket Expenses – $300
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 17.5% is payable on legal fees.