Buying Barbados - Everything First Time Home Buyers Need To Know | Blog | Realtors Limited

Buying Barbados - Everything First Time Home Buyers Need To Know

Buying Barbados - Everything First Time Home Buyers Need To Know

Buying your first home is exciting! But to first time buyers you may have many questions or not know where to begin. Read on for a step-by-step guide on buying in Barbados, or reach out to our team at info@realtorslimited.com and we will guide you through one-on-one.

1.    Secure your Financing

Get Pre-Approved

We highly recommend getting pre-approved with your lender before you begin your search. Preapproval is when your lender (e.g. bank or credit union) verifies your financial information and gives you a letter outlining how much you can borrow and the preliminary terms of the loan.Having this letter shows buyers you are serious and can help you get ahead in a competitive market. Our team can help you find a reputable mortgage broker here in Barbados. Please note that this process may take some time so begin as soon as possible.

 

Save for down payments and closing costs.

The more you can pay down up front, the lower your monthly mortgage. We recommend saving 10-15% of the cost of the home for the down payment. Don’t forget to save extra cash for closing costs. Closing costs are typically around 2–7% of your home’s purchase price (split between the buyer and the seller). These are fees that are paid to third parties on closing day to finalize the deal. Some fees include: Legal fees, between 1.5% and 2% of purchase price + VAT are paid by both parties. Property Transfer Taxes and Stamp Duty (1%)  are usually paid by the seller, but land tax is paid proportionally by both parties.

 

2.    Define your needs vs wants

Now that your finances are in place it’s time to get realistic about what you are looking for. Write out a wish list with everything from number of bedrooms, ideal location, type of property and size of the lot. Don’t forget to stick to your budget and be realistic.

Write a list of non-negotiables for example, a fenced yard for your pets or located within a gated community. Try to keep this list under 3 items of absolute ‘must haves’. Then you can write your ‘nice-to-have’ list for example, parking for multiple cars, a guest cottage on site or ocean views, that would be the cherry on top your dream home.

 

3.    Choose your Real Estate Agent

Once you have a realistic list in place it’s time to share this list with an agent who will match you with homes that suit your interest. There are many agents to choose from in Barbados. We recommend working with an agent who is a certified member of BEAVA (Barbados Estate Agents and Valuers Association) to ensure the highest standard and widest access to properties on island.

Working with a Realtors Limited, BEAVA certified agent will guarantee a team that is dedicated to you. An additional benefit of working with a BEAVA agent is that you work with that one agent and know that you are seeing a wide portfolio of properties from many agencies without having to work with multiple agencies. The seamless service extends beyond the sale as we also offer a full complement of services including property management, villa rentals, concierge services and more.

A good real estate agent will help you find the right home and navigate the buying process. Let us help you - reach out by emailing info@realtorslimited.com today.

 

4.    Viewing Homes

This is the fun part, but it does take an open mind and patience. Look past the current furniture or paint colours and keep your focus on the layout and structure of the home. You will most likely look at multiple homes, be patient and enter each one by bringing your unique vision on how you could make that home yours if you were to choose it. Be firm with your likes and dislikes so your agent can refine the options during the search.

Here are links to 5 properties listed for sale in Barbados that would be great for first time homeowners:

 

5.    Closing

Congratulations, you found a home you love and you’re ready to buy! But there are still a few more steps before you can move in. Have a valuation done of the property if a current one is not readily available. This will allow you to guide your offering price and will be a prerequisite for the financial institution providing the loan. Have any checks done by a contractor so you are aware of the cost you may incur if you want to make an offer. 

  • Once you have this information you can make a competitive offer (within your budget), your agent will help guide you with this.
  • Once the seller agrees to a price, seal the deal and sign the ‘Offer and Acceptance’ form.
  • Engage your lender and lawyer to transfer the funds and complete conveyance of title.

Most properties in Barbados take about 3 – 6 months to close – from the date of signing. Use the time to exercise your due diligence, your agent will help you with this.

There is no better feeling than getting the keys to your first home in your hands. While the process does take time, having a professional Realtors agent guide you through the process will save you time and minimise hiccups along the way. Reach out today by emailing info@realtorslimited.com.

 

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