Abaco Real Estate Sellers Guide

Government Taxes on Property Conveyances

• 2.5 % government stamp duty on all real estate transactions valued under $100,000

• A total tax of 10% on all real estate transactions valued at $100,000 and over. This includes the 2.5 % government stamp duty.

• VAT registrants will be able to claim as a credit or net off the 7.5 % VAT on commercial property sales valued at over $100,000

Subject to change at any time.The stamp duty is generally shared equally between buyer and seller – unless otherwise agreed upon.

This is intended as a guide only. Please consult your lawyer if you are interested in selling your Bahamas property.

Real estate commissions as established by the Bahamas Real Estate Association are as follows:

  • 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 % of sale price

A Value Added Tax (VAT) of 7.5% is applied on real estate services, such as appraisals, legal fees, commissions and insurance.

These are the main costs in buying and selling real estate. Other costs may –but not necessarily - include converting from Bahamian to U.S. currency and vice versa, and appraisal and surveying fees.

Laws are subject to change.

SELLING TIPS

The condition of your Bahamas home will more than likely affect the likelihood of a quick sale.

Sellers often overlook eyesores that they're used to. The kids dirty fingerprints on the walls may have become part of the landscape, as have the withering house plants.

People can be turned off by just these little things. Here are a few tips to help prepare your home for a sale.

Outside

  1. Get your garden in shape. Trim, mow, hedge and water the lawn. Plant flowers and put a tub of flowers at the front door.
  2. Clean sidewalks, walkways and paint the front door. This is the first impression a buyer will have of your home.
  3. Repaint the home or touchup areas as necessary to give a clean and kept appearance.

Inside:

  1. Give potential buyers a blank screen to work with so they can visualize the home they'll want to create.
  2. Remove your personality – pictures, paintings, trophies and so on.
  3. Pack up all the clutter, such as books and knick nacks.
  4. Organize things in drawers and cupboards, particularly in the kitchen. Smart buyers will want to open cabinets and closets, so keep them neat.
  5. Remove unnecessary furniture such as shelf units, extra leaves from the dining room table, an extra chair and anything else that may make your room look larger.
  6. However, leave enough furniture to give a homey feel.

Fix-It

Touch up the paint, replace light bulbs, patch up any holes and make sure kitchen/bathroom faucets don't drip.

Take care that you're not selling a "fixer-upper": from replacing light bulbs to touching up the paint, be sure to present your home in turn key condition.

Major Repairs

Be sure repair costs don't outweigh the benefits.

Paint rooms neutral colors. The colour you love may be the colour a prospect hates.

Freshen Up

Give your Bahamas home a good spring cleaning both inside and out before someone sees it. This includes cleaning windows, dusting, polishing floors, cleaning the fridge, cleaning the grout, mirrors, tubs and sinks. Get rid of any pet odors.

Try this: Invite a friend or neighbor take on a buyer's role. Let them tell you whether or not your home is inviting, clean and well maintained. And encourage them to be honest.

Abaco Real Estate Sellers Guide