Guide for Buyers

GUIDES FOR BUYERS

Are you considering purchasing a property in The Bahamas?

At Graham Real Estate, we work with buyers every day and we understand that the process of purchasing a property can be intimidating. Since 1994, Graham Real Estate has earned a solid reputation for its:

• Intimate knowledge of the islands and their geography

• Deep-rooted community and business relationships

• Uncompromising integrity and trustworthiness

COST FOR BUYERS: Gross vs. Net

One of the first questions you may have is what the costs are for the buyer in a real estate transaction. It is important to be familiar with gross vs. net.
All properties in The Bahamas are advertised at a gross price.

COSTS IN ADDITION TO THE GROSS PRICE

On top of the gross price, you have to plan for certain real estate transaction fees when buying a property in The Bahamas.
Here is a breakdown of these costs:

Legal Fees: All buyers and sellers must have a Bahamian attorney represent them. Legal fees average at approximately 2.5% of the selling price of the property per side (plus VAT). It is important when starting the process of buying to meet with a few attorneys to form a working relationship with someone that you can trust.

There are a few additional legal fees that you will need to factor in:

Recording fees on the conveyance and other closing documents
Payment of the permit under the International Persons Landholding Act (International buyers only)

Transfer TAX/Government VAT: This cost is typically split 50/50 between the buyer and the seller. For property in a company name, any sale under $100,000 is subject to stamp tax of 2.5%, while transactions over $100,000 incur a stamp tax of 10%.

As of July 2022, there was a new breakdown for real estate transactions for private individuals as follows:

FINANCING

If you are receiving financing, then be sure to speak with your mortgage broker or financial institution to understand all the fees involved with your loan.

There is a lot to be considered when purchasing in The Bahamas, so we developed a step-by-step guide to help you feel more at ease as you consider purchasing a property, including advice for the pre-and-post closing period.

To find out more about the main steps to purchase a home in The Bahamas, please fill out the information below.

WHAT OUR BUYERS SAY...

"Fantastic job!"

“Laura Kimble did a fantastic job of showing us available properties and worked closely with us to find the right one. She also guided us through the process for purchasing property in The Bahamas. Our only previous real estate purchase was in Florida, so this was a new experience for us. We would highly recommend Laura and Graham Real Estate as they made our purchase a great experience”

Jeffrey and Lynn Zammit

"Go with your gut!"

“When I walked into my house, I immediately knew that was the one. I felt like I came home! So, my advice is to be realistic and patient. It helps to have the right people working on your behalf, so I’d suggest to go with your gut when choosing your broker ... make sure that you have a good connection”.

Mrs. G.B. (Bahamas)

"Visit the Bahamas several times to ensure that it is right"

“Visit the Bahamas several times to ensure that it is right for you and that you will use your property enough to justify the purchase. Or if you plan on renting out your property, then you need to determine the best location for the type of tenant that you hope to attract. If you are buying for investment, then compare the potential revenue against the expenses for the property, and compare this to the return on other real estate investments in your home country."

Mr. Greg D (Canada)

NEXT STEPS

We realize that every person and property is unique. That's why we’re delighted to offer you highly committed and personalized service. If you’re ready to start the exciting process of searching for a property in The Bahamas, then contact us today to discuss your requirements.